Gibraltar to Launch World’s First Dedicated Prediction Markets Regulatory Regime

^{Pictured: Gibraltar / © Shutterstock}

Gibraltar, a British Overseas Territory, is set to become the world’s first jurisdiction to introduce a dedicated regulatory regime for prediction market operators, SBC News reports.

The sector will be overseen by a dedicated supervisory authority. Its role will be similar to that of the Gambling Commissioner, who regulates gambling operators licensed in Gibraltar.

Gibraltar’s Minister for Justice, Trade and Industry, Nigel Feetham, said the government intends to establish clear rules for companies operating prediction markets. According to Feetham, the framework is designed to ensure platform integrity and transparency, protect users and combat financial crime.

The new regime will cover:

• oversight of platform integrity and user protection;
• the review and approval of markets offered to customers;
• the detection of suspicious transactions and prevention of money laundering;
• enforcement of regulatory requirements and penalties for violations;
• the use of cryptocurrencies for account funding and customer payouts.

ADI Predictstreet and Wire Markets will be the first platforms to operate under the new rules.

ADI Predictstreet currently holds a betting intermediary licence, while Wire Markets has received approval in principle for its application.

Wire Markets co-founder Travis Geiger described the move by the territory’s government as a major development for the prediction markets industry. He said the new framework would give operators greater certainty over regulatory requirements and allow them to plan for long-term business growth.

By comparison, prediction markets in the United States are regulated as financial products. Gibraltar, however, will introduce a standalone regime with a dedicated licence and oversight framework specifically for prediction markets.