World Lottery Association Calls for Prediction Markets to Be Regulated as Betting

^{Pictured: Andreas Kötter, President of the WLA}

The World Lottery Association (WLA) has opposed prediction markets and called for them to be subject to the same requirements as bookmakers. The association set out its position in a document titled “Prediction Markets: Unlicensed Betting by Another Name”.

The WLA said such products should be assessed based on their substance rather than their label.

If a user deposits money and can receive a payout depending on the outcome of a match or another event, the product should be regulated as betting, the association said.

The document places particular emphasis on the risks for lottery operators.

The WLA said lottery operators incur costs related to licences, taxes, responsible gambling programmes and contributions to good causes. Prediction markets operating outside that regulatory framework may be able to attract customers without comparable obligations.

According to the WLA, licensed lottery operators and bookmakers worldwide contributed $109 billion to good causes in the 2024 financial year, including healthcare, education, sport, culture and social programmes. The association warned that players moving to prediction markets could reduce such contributions.

Among other risks, the WLA cited the absence on prediction platforms of mandatory age verification, self-exclusion tools, spending limits, responsible gambling rules and complaints procedures.

The association also pointed to threats to sporting integrity, saying such platforms may not share data on suspicious activity with sports bodies, regulators and law enforcement agencies.

Gambling Park notes that criticism of prediction markets has not come only from the lottery sector. Similar concerns have previously been raised in the United States by representatives of the betting and casino industries.