On Wednesday, nine European gambling regulators launched a coordinated initiative aimed at unlicensed prediction market platforms throughout the continent. As the 2026 FIFA World Cup approaches, authorities from Belgium, France, Germany, Italy, the Netherlands, Poland, Portugal, Spain, and Switzerland committed to enhanced cross-border cooperation to ensure tighter oversight of this rapidly expanding industry.
In the United States, there is a debate on whether prediction markets are classified as gambling or financial instruments. However, in Europe, these platforms are widely regarded as unlicensed gambling activities.
The European regulators expressed increasing concerns about prediction markets, which allow users to bet on the outcomes of future events. They underscored consumer protection and market integrity risks, particularly concerning platforms operating without the appropriate local gambling licenses.
One major concern highlighted by the authorities was the risks to consumers since these platforms offer 24/7 access but lack mandatory betting limits and cooling-off periods. This availability may lead to increased gambling harm, particularly among younger users.
Additionally, the regulators pointed out potential issues with age and identity verification on unlicensed platforms, creating further safeguarding challenges. They cautioned sports federations, leagues, and clubs to ensure that any partners involved in prediction markets are legally compliant before entering into sponsorship or commercial agreements.
To address these concerns, the nine regulatory bodies promised to enhance information-sharing and expertise exchange to better enforce compliance during and after the World Cup. This includes coordinated monitoring of advertising practices and betting integrity safeguards.
They also plan to increase social media campaigns to promote safer gambling practices and implement regulatory actions ranging from formal warnings to possible sanctions against non-compliant operators. Potential enforcement measures may involve blocking services, imposing fines, restricting advertisements, or freezing accounts, especially for operators relying on offshore or decentralized crypto-licenses.
Last month, Spain's gambling regulator, the Dirección General de Ordenación del Juego (DGOJ), temporarily blocked the platforms Polymarket and Kalshi because they were offering services in Spain without the necessary administrative licenses. Similar geoblocking efforts were also undertaken in France and the Netherlands.
The rise of prediction markets has been fueled by innovations in cryptocurrency and trends in social sharing, along with mechanisms that resemble financial trading. Unlike traditional sportsbooks, some platforms allow fractional stakes and offer betting on a wider range of events, with real-time price shifts blurring the lines between gambling and financial speculation.
Europe’s varied regulatory landscape poses challenges for overseeing prediction markets. Gibraltar recently licensed Europe’s first prediction market operator, ADI Predictstreet, aimed at boosting its gambling economy amid the newly imposed UK remote gaming duties. The operator launched at the start of the month in anticipation of the World Cup, and quickly secured a partnership with FIFA as their official prediction market partner for the tournament.
Notably absent from the regulatory statement was Malta, where the economy minister, Silvio Schembri, mentioned in March that the country is "actively exploring the emerging field of prediction markets, an area experiencing rapid global momentum which presents significant opportunities for innovation."
