Malta Studies Legal Path for Prediction Markets
Malta has started evaluating how prediction markets could be formally regulated, with government officials assessing the structure needed to oversee a sector that continues to expand globally. Economy Minister Silvio Schembri confirmed that discussions are underway to determine how these platforms could operate under a defined legal system.
During remarks delivered at the opening of Blockchain.com’s offices in Malta, Schembri outlined the government’s position on the matter. He said: “We are actively exploring the emerging field of prediction markets, an area experiencing rapid global momentum which presents significant opportunities for innovation, provided it is supported by clear, forward-looking legislative framework that enables it to develop responsibly and at scale.”
Expanding Market Draws Regulatory Attention
Prediction markets allow users to speculate on future events, including elections, economic indicators, and sports outcomes. Interest in this segment has increased as trading volumes continue to rise across major platforms.
Operators such as Polymarket and Kalshi have seen notable growth. Combined trading activity on these platforms reached an estimated $37 billion (€31.5 billion) in 2025, with some projections placing the total above $40 billion by the end of the year. Kalshi, which operates under U.S. regulatory oversight, has also been reported to hold a valuation of around $20 billion.
Despite this growth, regulatory treatment of prediction markets remains inconsistent. Authorities in different jurisdictions apply varying classifications, and in some regions, access to these platforms is restricted. Within the European Union, there is no harmonized legal framework, leaving each member state to define its own approach.
Malta Weighs Safeguards and Market Integrity
Officials in Malta are now considering how a structured regulatory framework could address the challenges associated with prediction markets. The focus includes establishing safeguards for consumers, ensuring fair market practices, and maintaining financial stability within the sector.
Schembri referenced Malta’s earlier regulatory efforts in emerging industries as a benchmark. He noted: “We recognised early on that users need to feel safe is this industry was going to grow, which means it needed to uphold the highest standards of transparency and compliance.”
Authorities are reviewing several key areas, including mechanisms to prevent manipulation and insider activity, requirements for operator capital, and standards for fair payouts. These considerations reflect an attempt to create a system that balances innovation with oversight.
Malta has previously positioned itself as an early adopter in regulatory frameworks tied to digital sectors. The country introduced online gaming regulations in the early 2000s and later established legislation covering blockchain and cryptocurrencies in 2018. These steps helped build its reputation as a jurisdiction open to technological development.
Global Uncertainty Shapes Policy Direction
Malta’s current assessment takes place against a backdrop of ongoing regulatory uncertainty worldwide. In the United States, differing interpretations and legal disputes in states such as Nevada and Arizona have created uneven conditions for operators. Across Europe, the absence of a unified system comparable to Markets in Crypto-Assets has contributed to a fragmented environment.
By developing a dedicated framework, Malta could provide companies with clearer legal expectations within a single jurisdiction. This would allow operators to base their activities within the European Union while adhering to defined standards.
The initiative remains at an early stage, with authorities continuing to assess how such a system could be implemented. As the prediction market sector expands, Malta’s approach may play a role in shaping how other jurisdictions respond to similar developments.
Source:
Malta Considers Framework For Prediction Markets, lcb.org, March 27, 2026