GGL targets ADI Predictstreet, claiming its World Cup advertising breaches gambling ad rules

Germany’s Gemeinsame Glücksspielbehörde der Länder (GGL) has initiated a formal investigation into the advertising practices of Abu Dhabi-backed prediction market operator ADI Predictstreet, German newspaper RND reported on Wednesday.

The review covers ADI’s branding being prominently featured on pitch-side billboards during recent FIFA World Cup broadcasts, despite not having a local gambling licence to operate and advertise in Germany.

ADI Predictstreet was granted a betting intermediary licence in Gibraltar in April, enabling it to provide a prediction market offering via the licensing hub. Shortly thereafter it was named FIFA’s official prediction market partner for the World Cup.

However, as the operator does not hold a licence to operate in Germany, the regulator said it had opened a formal review process to determine whether ADI Predictstreet is considered to be providing illegal gambling under its gambling laws.

Its advertising, which has featured prominently across World Cup matches, is also being investigated as a potential violation of Germany’s gambling advertising laws, which prevent unlicensed operators from marketing in the region.

RND reported that ADI Predictstreet’s branding was also visible during Germany’s opening game, which was streamed via the children’s channel KiKa. 

In a statement to RND, the GGL said its review would also consider whether German residents can access and participate in ADI Predictstreet’s offering.

If violations are confirmed, regulatory action could involve cease-and-desist orders being sent to the operator, as well as connected service providers such as payment processors, web hosting companies, or teleco firms.

ADI Predictstreet denies wrongdoing

In response to the claims, an ADI spokesperson told the newspaper: “We operate no marketing or advertising activities targeted at Germany.”

The company asserted that any visibility of its branding during the World Cup resulted from “global sponsorship and media rights arrangements” and was not specifically meant to target German consumers.

Broadcasters have noted limitations in controlling on-site advertising. Thomas Hagedorn, spokesperson for German public broadcaster ZDF, told RND that the network had no influence over the pitch-side advertising since visuals are provided by the event’s host broadcaster. 

Hagedorn maintained that the ad displays complied with Germany’s broadcasting regulation, the Media State Treaty.

Legal complexities around prediction markets

Questions around the legality of prediction markets in Europe are growing. This week, nine gambling regulators across the continent launched a coordinated crackdown against the vertical, which is not yet formally regulated in any European market, except Gibraltar.

Prediction markets are considered gambling offerings across many European jurisdictions, despite an ongoing debate in the US which has framed the product as a financial instrument. As such, the vertical is banned in Germany.

Prominent operators Polymarket and Kalshi have been banned across Europe, including most recently by Spain’s DGOJ.