Nine European Regulators Unite to Tackle Unlicensed Prediction Markets

Nine European gambling regulatory bodies have launched a unified effort to address the proliferation of unlicensed prediction market platforms across the continent. This joint initiative, announced on Wednesday, brings together regulators from Belgium, France, Germany, Italy, the Netherlands, Poland, Portugal, Spain, and Switzerland.

The coordinated action coincides with the lead-up to the 2026 FIFA World Cup, with authorities pledging increased cross-border collaboration to enhance oversight of this rapidly growing sector. While the status of prediction markets as either gambling or financial instruments remains a point of contention in the US, European regulators widely classify these platforms and their operators as engaging in unlicensed gambling activities.

Mounting Concerns Over Consumer Protection

In a joint statement, the participating authorities voiced significant concerns regarding prediction markets, which enable users to wager on future event outcomes. A primary worry revolves around consumer protection and market integrity risks, particularly from platforms operating without proper local gambling licenses. Regulators highlighted issues such as constant accessibility without mandated betting limits or cooling-off periods, which they believe exacerbates the potential for gambling-related harm, especially among younger demographics.

Further safeguarding challenges arise from inadequate age and identity verification processes on many unlicensed platforms. The authorities also issued a specific caution to sports federations, leagues, and clubs, urging them to verify the legality of any prediction market partners before entering into sponsorship or commercial agreements.

Pledged Enforcement and Past Actions

The nine regulatory bodies have committed to intensifying information exchange and sharing expertise to bolster compliance enforcement. This will include coordinated monitoring of advertising standards and betting integrity safeguards both during and after the World Cup. They also plan to utilize social media campaigns to promote safer gambling practices and will deploy various regulatory measures, from formal warnings to sanctions against non-compliant operators.

Potential enforcement actions could involve service blocking, financial penalties, advertising restrictions, or the freezing of accounts, specifically targeting operators relying on offshore or decentralized crypto-based licenses. Demonstrating prior action, Spain's Dirección General de Ordenación del Juego (DGOJ) recently ordered a temporary block on Polymarket and Kalshi, citing their operation within Spain without mandatory administrative licenses. Similar geoblocking efforts have also been implemented in France and the Netherlands.

Fragmented Landscape and Diverse Approaches

Prediction markets have seen rapid expansion, driven by advancements in cryptocurrency, social sharing dynamics, and mechanisms that mimic financial trading. Unlike conventional sportsbooks, some of these platforms allow fractionalized stakes and offer markets on events beyond traditional sports, with real-time price movements often blurring the line between gambling and financial speculation.

Europe's diverse regulatory environment for prediction markets complicates a unified approach. Notably, Gibraltar recently licensed ADI Predictstreet as the continent's first prediction market operator, aiming to stimulate growth in its gambling economy. This operator subsequently became FIFA's official prediction market partner for the World Cup. Meanwhile, Malta's Economy Minister, Silvio Schembri, indicated in March that the country is actively exploring the emerging field of prediction markets, recognizing its global momentum and potential for innovation.