Gibraltar announces regulatory framework for prediction markets

Gibraltar’s Ministry for Justice, Trade and Industry Nigel Feetham has announced that the jurisdiction has formally incepted a new regulatory framework for prediction markets.  

In what Feetham has described as a ‘world first,’ Gibraltar has enacted new regulations to govern the prediction market sector – marking the first legal structure of any kind for the field outside of the US. The new laws reportedly center around market integrity, innovation and consumer protection to help enable growth within the market.  

Interestingly, this latest update comes within days of North Carolina’s announcement that it had imposed a 6% tax on all prediction market trading revenues and recognised the Commodity Futures Trading Commission’s ‘exclusive’ authority over the sector in the US. Now, prediction markets regulation has also marked its latest step forward across the Atlantic as per this latest development.  

Speaking on these latest regulations, Feetham stated: “These regulations mark an important step towards creating a transparent, responsible and future-ready regulatory framework for prediction markets. Gibraltar is proud to lead the world. Together, we are building a modern, trusted and innovation-friendly environment that supports economic growth.”  

Indeed, Feetham also noted via LinkedIn the region’s intention to licence its first prediction market operator under this new framework, with a second operator having been granted an Approval in Principle – with more expected to follow in the coming weeks.  

In April, ADI Predictstreet secured Gibraltar regulatory approval to scale its platform across the globe. More recently, the platform also received its Approval in Principle in the region.  

Elsewhere in the region, March saw Gibraltar also pass a new Gambling Bill following increased tax pressures related to levies outlined in the UK’s Autumn Budget last year.