Nine European gambling regulators have issued a joint warning to prediction markets, demanding compliance with local regulations or facing enforcement action. The statement, signed by regulators from Germany, Belgium, Italy, France, Spain, Portugal, Poland, Switzerland, and the Netherlands, specifically targets prediction markets ahead of this summer's World Cup.
Concerns Over Addictive Features and Safeguards
The regulators expressed concern that prediction markets lack safeguards compared to licensed gambling platforms. In their joint statement, they said: "By allowing users to place bets on the outcome of political, sporting or geopolitical events, prediction markets have several addictive features, which are worsened by the fact that, in those countries where these platforms are not licensed, they don’t offer any safeguards."
Call to Stakeholders
Beyond warning operators, the regulators urged sports federations, leagues, and teams to ensure prediction market platforms are lawful before entering partnerships. The statement added: "We would also like to remind the various stakeholders in the sporting world, particularly sports federations, leagues and teams, to ensure that these platforms are lawful within their jurisdiction before entering into major partnerships with them."
The regulators pledged to enhance cross-border cooperation through information exchange, expertise sharing, and best practices. Many also plan to increase social media activity during the World Cup to promote safe gambling.
Previous and Ongoing Scrutiny
France's L’Autorité Nationale des Jeux (ANJ) and Germany's Joint Gambling Authority of the States (GGL) had already made their positions clear. Although the UK Gambling Commission did not sign the statement, it has previously indicated that prediction markets would "likely" be classified as gambling.
How Prediction Markets Differ
Prediction markets allow users to trade contracts on event outcomes at user-set prices, unlike traditional betting where the house sets odds and maintains an edge. This structural difference is at the heart of regulatory concerns, as it may circumvent existing gambling laws.
