European Watchdogs Step Up Scrutiny of Prediction Markets

A coalition of gambling regulators from nine European countries has launched a joint initiative to monitor prediction market platforms more closely during the 2026 FIFA World Cup, reflecting growing concerns about licensing compliance, consumer safeguards and betting integrity.

The coordinated effort brings together authorities from Belgium, France, Germany, Italy, the Netherlands, Poland, Portugal, Spain and Switzerland. With betting activity expected to increase significantly throughout the tournament, regulators said they are paying closer attention to prediction markets, which have experienced rapid growth and rising popularity in recent years.

The regulators issued a joint statement warning that many prediction market operators function outside established gambling frameworks in several jurisdictions. As a result, some platforms may not be subject to the same consumer protection measures that licensed betting operators are required to implement.

Authorities Highlight Consumer Protection Concerns

Prediction markets allow users to buy and sell contracts linked to the outcome of future events. While sports-related contracts have attracted significant attention ahead of the World Cup, these platforms also offer markets connected to political developments and geopolitical events.

European regulators said some prediction market services operate without obtaining local gambling licences. They also noted concerns regarding age-verification processes, betting controls and other player protection measures that are commonly required within regulated gambling markets.

The joint statement further identified risks linked to fraud, insider information, financial volatility and possible breaches of national laws.

Regulators have already begun taking action in several countries. In Spain, authorities recently ordered a temporary block on both Polymarket and Kalshi after concluding that the platforms were operating without the licences required to offer services locally.

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

World Cup Places Sector Under Greater Spotlight

The FIFA World Cup has intensified discussions surrounding the legal classification of prediction markets.

The tournament is the first World Cup to take place after prediction market platforms gained substantial international visibility. Their rapid expansion has led to disagreements among policymakers and regulators over whether the products should be regulated as gambling offerings or as financial instruments.

Different jurisdictions have adopted different approaches. Some regulators view prediction contracts as gambling products that should fall under betting laws, while others argue they resemble securities or derivatives and therefore belong within financial regulatory systems.

That lack of consistency has allowed many platforms to expand internationally while legal and regulatory questions remain unresolved.

“Prediction markets are entering the same phase every novel financial primitive eventually enters: first hobbyist market, then mass attraction, then legitimacy fights,” said Dovey Wan, founding partner of Primitive Ventures. “The recent bans mean the category has become important enough to regulate.”

Chris Holland, partner at HM Strategy, also pointed to concerns surrounding oversight and market transparency.

“Betting isn’t new,” he said. “What’s new is the structure.”

Holland noted that many contracts are treated as derivatives rather than traditional betting products. “That gap is an open invitation to insiders.”

Regulators Expand Cooperation Efforts

The participating regulators said they will strengthen cooperation during the World Cup and continue those efforts beyond the tournament.

Planned activities include sharing information between jurisdictions, exchanging expertise, monitoring advertising practices and working together on betting integrity issues.

Authorities also stated that they are prepared to take action against operators that do not comply with local rules. Measures under consideration include warnings, sanctions, advertising restrictions, service blocking and account freezes.

The regulators additionally called on sports organisations to examine the legal standing of prediction market companies before entering commercial partnerships or sponsorship agreements.

Alongside enforcement activities, the group plans to increase safer gambling messaging through social media campaigns during the tournament. The initiative forms part of a broader effort to improve consumer awareness as prediction markets continue to attract greater public attention across Europe.

Source:

“European Regulators Unite Over Prediction Markets”, LCB.org, June 20, 2026.