Germany's Gemeinsame Glücksspielbehörde der Länder (GGL) has launched a formal investigation into the advertising methods of ADI Predictstreet, a prediction market operator backed by Abu Dhabi, as reported by the German newspaper RND. The investigation centers on ADI's branding prominently displayed on pitch-side billboards during recent broadcasts of the FIFA World Cup, despite the company lacking a local gambling licence to operate and advertise in Germany.
In April, ADI Predictstreet received a betting intermediary licence in Gibraltar, allowing it to offer prediction market services through that licensing hub. Shortly thereafter, it was established as FIFA's official prediction market partner for the World Cup. However, since ADI does not possess a licence for operations in Germany, the GGL has initiated a review to ascertain whether ADI Predictstreet is engaged in illegal gambling according to German law.
The advertising in question, which has been prevalent during World Cup matches, is also under scrutiny for potentially breaching Germany’s gambling advertising regulations, which prohibit unlicensed operators from marketing within the country. RND also noted that ADI Predictstreet’s branding appeared during Germany’s opening match, streamed on the children's channel KiKa.
In a statement to RND, the GGL indicated that the review would also evaluate whether German residents have access to and can participate in ADI Predictstreet's offerings. Should violations be evidenced, the regulator may take action such as issuing cease-and-desist orders to the operator, along with related service providers like payment processors and web hosting firms.
In response to the allegations, an ADI representative claimed, “We operate no marketing or advertising activities targeted at Germany.” The company stated that its advertising visibility during the World Cup stemmed from 'global sponsorship and media rights arrangements' rather than a targeted effort to reach German consumers.
Broadcasting entities have expressed limitations in managing on-site advertising. Thomas Hagedorn, a spokesperson for German public broadcaster ZDF, explained to RND that the network lacks controlling influence over pitch-side advertisements as these visuals are sourced from the event's host broadcaster. Hagedorn asserted that the advertising displays adhered to Germany’s Media State Treaty regulations.
Legal questions regarding prediction markets in Europe are intensifying. Recently, nine gambling regulators across the continent executed a coordinated crackdown on this area, which remains unregulated in all European markets apart from Gibraltar. While prediction markets are categorized as gambling in many European jurisdictions, there is an ongoing discussion in the United States framing these products as financial instruments, which has led to their prohibition in Germany.
Notable operators in this vertical, including Polymarket and Kalshi, have faced bans throughout Europe, most recently enforced by Spain's DGOJ.
