Nine European regulators launch crackdown on unlicensed prediction markets

Nine European gambling regulators have launched a coordinated crackdown on unlicensed prediction market platforms, stepping up oversight of the fast-growing sector as betting activity surges during the 2026 FIFA World Cup.

Regulators from Belgium, France, Germany, Italy, the Netherlands, Poland, Portugal, Spain and Switzerland announced a joint initiative aimed at strengthening cross-border cooperation against operators offering prediction market products without local gambling licences.

The move highlights Europe's increasingly strict stance toward prediction markets, which allow users to trade contracts tied to the outcomes of real-world events, including elections, economic data releases and sporting contests.

While U.S. regulators continue to debate whether such products should be classified as gambling or financial instruments, European authorities broadly view them as gambling activities that require local authorization.

In a joint statement, the regulators cited consumer protection and market integrity concerns associated with unlicensed platforms.

Authorities warned that some platforms provide round-the-clock access to betting-like products without mandatory betting limits or cooling-off periods, increasing the risk of gambling-related harm.

According to the regulators, weak age and identity verification processes on certain platforms posed additional safeguarding concerns, particularly for younger users.

They also urged sports federations, leagues and clubs to scrutinize commercial relationships involving prediction market operators.

The regulators specifically warned sports organizations to verify the legality of prediction market partners before entering sponsorship or other commercial agreements.

As part of the initiative, the nine authorities pledged to increase information sharing and exchange expertise during and after the World Cup.

Planned enforcement measures include monitoring advertising compliance and betting integrity safeguards, conducting public awareness campaigns on safer gambling, and taking action against non-compliant operators.

Potential sanctions could include formal warnings, service blocking, fines, advertising restrictions and account freezes, particularly for operators relying on offshore or decentralized crypto-based licences.

Several European jurisdictions have already taken action against leading prediction market operators.

Spain's gambling regulator, the Directorate General for the Regulation of Gambling (DGOJ), temporarily blocked Polymarket and Kalshi in May, saying the platforms were offering services in the country despite not holding the mandatory administrative licences required under the country's gambling regulations.

France and the Netherlands have also implemented geoblocking measures targeting prediction market operators.

Prediction markets have expanded rapidly in recent years, driven by cryptocurrency adoption, social media engagement and trading-style market mechanisms. Unlike traditional sportsbooks, some platforms allow fractionalized stakes and offer markets on political, economic and other non-sporting events.

The regulatory push comes as some European jurisdictions explore opportunities in the sector.

Gibraltar recently licensed ADI Predictstreet, described as Europe's first licensed prediction market operator. The company launched ahead of the World Cup and was named FIFA's official prediction market partner for the tournament.

Malta did not join the regulators' joint statement. In March, Economy Minister Silvio Schembri said the country was "actively exploring the emerging field of prediction markets, an area experiencing rapid global momentum which presents significant opportunities for innovation."

The differing approaches underscore a growing divide within Europe as regulators weigh consumer protection concerns against potential opportunities from the emerging market.