Nine European regulators coordinate crackdown against prediction markets 

On Wednesday, nine European gambling regulatory authorities announced a joint initiative targeting unlicensed prediction market platforms across the continent.

Coinciding with the start of the 2026 FIFA World Cup, regulators from Belgium, France, Germany, Italy, the Netherlands, Poland, Portugal, Spain and Switzerland have pledged enhanced cross-border cooperation to tighten oversight of the rapidly expanding vertical.

In the US there is an ongoing dispute over whether prediction markets constitute gambling or financial instruments, but in Europe, the vertical, and the operators driving its popularity, are broadly seen as an unlicensed gambling activity.

Coordinated action 

In a unified statement, the European authorities expressed growing concern over prediction markets – platforms that enable users to place bets on the outcomes of future events.

The bodies highlighted various consumer protection and market integrity risks associated with these platforms, particularly those operating without local gambling licences.

Key among the concerns were the risks to consumers when platforms could offer round-the-clock accessibility, despite there being no mandatory betting limits or cooling-off periods. This, they said, increases the potential for gambling harm, especially among younger users.

The authorities also alluded to verification issues, where weak age and identity checks on unlicensed platforms raise further safeguarding challenges.

They specifically warned sports federations, leagues and clubs to verify the legality of partners involved in prediction markets before engaging in any sponsorship or commercial relationships.

Promises of practical measures 

The nine regulatory bodies pledged to intensify information sharing and exchange expertise to enforce compliance more effectively during and after the World Cup, through coordinated monitoring of advertising compliance and betting integrity safeguards.

They also noted that they would increase their use of social media campaigns to raise awareness around safer gambling practices, while deploying regulatory measures ranging from formal warnings to sanctions against non-compliant operators.

Potential other enforcement actions could include service blocking, fines, advertising restrictions, or freezing of accounts, especially targeting operators reliant on offshore or decentralised crypto-licences.

Spain’s gambling regulator, the Dirección General de Ordenación del Juego (DGOJ) ordered a temporary block on Polymarket and Kalshi last month. According to the original statement, both platforms were offering services within Spain, despite not holding the mandatory administrative licences required under the country’s gambling regulations.

Similar geoblocking efforts have been carried out in France and the Netherlands.

The growing popularity of prediction markets

Prediction markets have grown swiftly in recent years, fuelled by innovations in cryptocurrency, social sharing dynamics and mechanisms resembling financial trading. 

Unlike traditional sportsbooks, some platforms allow fractionalised stakes and offer markets on events beyond sports. Their real-time price movements blur the lines between gambling and financial speculation.

Europe’s fragmented regulatory landscape for prediction markets complicates oversight. Gibraltar, recently licensed Europe’s first prediction market operator, ADI Predictstreet, as a way to generate growth in Gibraltar’s gambling economy, amid the impact of the recent UK remote gaming duty increase.

The operatorwent live at the start of the month ahead of the World Cup, and swiftly signed on as FIFA’s official prediction market parter for the tournament.

Another regulator missing from the statement was Malta. The island’s economy minister Silvio Schembri said in March the country was “actively exploring the emerging field of prediction markets, an area experiencing rapid global momentum which presents significant opportunities for innovation”.