Nine European gambling regulators coordinated to bring action against prediction market operators running without a license, a move for cross-border regulation ahead of the FIFA World Cup kicking off next year, to address risks presented by new growth in unlicensed operations across their territories.
Betting and gambling authorities from France, Germany, Italy, Poland, Portugal, Spain, Switzerland and the Netherlands have pledged to cooperate further, and expand efforts to supervise prediction marketplaces. The burgeoning market has developed in both Europe and the United States, which sees much more discourse regarding treatment of markets as securities-but in Europe, operators tend to fall into the category of unlicensed gambling.
A shared declaration by regulators described how prediction markets carry increasing risks to consumers as well as for the integrity of the overall marketplace, when run without appropriate license.
The officials stated that always on access, no bet limits and lack of any cools down feature on prediction markets create an increasingly higher risk for gamblers, notably vulnerable users such as minors. In terms of age checks, identification verification and also security features for users, offshore markets lacked appropriate measures and posed an even greater risk.
Sports organizations have been encouraged to comply with local gambling rules for any partnerships associated with such platforms, or they risk running afoul with regulated industries, and their respective regulatory bodies. To continue addressing risk, authorities are focused on increasing communication as well as joint efforts over the next World Cup and going forward, and expect to bring about regulatory penalties like warnings, advertising boycotts, fine and blockages.
Spain previously ordered the blocking of Polymarket as well as Kalshi, alleging that they both did not have the appropriate authorization to run-joining enforcement already witnessed within Netherlands and France.
The rise of these prediction markets is strongly attributed to the growth of cryptocurrency, and the advent of social trading that creates blurring lines amongst sportsbooks and other types of betting. Nonetheless, due to varying approaches to market supervision in Europe, effective intervention remains tough to enact throughout multiple nations.