Gibraltar has made history by becoming the first jurisdiction globally to establish a dedicated regulatory framework specifically for prediction markets, representing a major advancement in the growth of this sector. The announcement was made by Nigel Feetham KC MP, Gibraltar’s Minister of Justice, Trade, and Industry, who emphasized this decision as a significant step towards fulfilling the goal set earlier this year to position Gibraltar as the world's center for prediction markets.
During a visit to Hong Kong this year, Feetham recognized a clear commercial opportunity to diversify Gibraltar's economy through the burgeoning prediction markets sector. Since that time, he has engaged with industry leaders across the globe to gain insights into the technology, market infrastructure, and regulatory considerations essential to this rapidly evolving industry.
With the framework now in place, Gibraltar aims to issue its first license for a prediction market operator. The government has already granted Approval in Principle to one operator and plans to extend similar approval to another soon.
Feetham noted that the regulatory framework was developed over several months in collaboration with industry representatives to ensure that it promotes innovation while ensuring robust oversight. He remarked, "This regulation is the outcome of many months of close cooperation with the representatives of the industry who contributed to creating a viable yet innovative regulation." This framework is also timely, as regulators around the world continue to differentiate prediction markets from sports betting, with the two operating under distinct legal and regulatory models.
Feetham also highlighted the potential economic benefits the new regulation could bring to Gibraltar, paving the way for a favorable regulatory environment that attracts investments and skilled professionals within this fast-growing global industry. Looking to the future, he stated, "This is more than a new regulatory framework; it is a statement of intent. My ambition is to position Gibraltar as a leading jurisdiction for responsible digital innovation and for the development of new markets underpinned by high regulatory standards." This initiative demonstrates Gibraltar's resolve to remain a leader in innovation by developing proactive frameworks that support the growth of new sectors with assurance.
The introduction of the prediction markets regulation follows closely on the heels of recent legislation on tokenization, marking it the second significant regulatory initiative the government has implemented within a brief timeframe.
