Gibraltar hosted Europe’s first dedicated prediction markets summit on November 9–10, promoting its licensing framework as regulators across the continent increase scrutiny of event-based trading platforms.
The territory has authorized two prediction market operators and is reviewing additional applications, gambling commissioner Andrew Lyman said.
The development comes as nine European gambling regulators have warned against unauthorized platforms, while countries including Spain have taken enforcement action against Polymarket and Kalshi.
The PX Markets Summit Europe took place at Ocean Village, bringing together gambling industry representatives, legal experts and compliance specialists.
Gibraltar’s justice, trade and industry minister Nigel Feetham opened the event, organized by Eventus International.
Lyman told iGB that Gibraltar had progressed beyond discussing prediction market regulation and established a functioning licensing framework.
The territory approved its first operator, Predict Street, earlier in 2026 and introduced dedicated rules in July. A second operator has since received authorization, although the report did not disclose its identity.
Gibraltar is also considering a limited number of additional applications.
The summit’s speaker lineup included lawyers, startups and responsible gambling organizations such as BetBlocker. Major platforms Polymarket and Kalshi were not represented among the speakers.
Gibraltar’s approach offers prediction market businesses a regulated base, but authorization does not automatically extend beyond the territory.
While Gibraltar develops its licensing framework, several European countries are restricting prediction market services that operate without domestic authorization.
In June, gambling regulators from Belgium, France, Germany, Italy, the Netherlands, Poland, Portugal, Spain and Switzerland issued a joint warning against unlicensed prediction markets.
Spain initiated enforcement proceedings against Polymarket and Kalshi in May, including measures to restrict access to their websites.
On November 4, Germany’s gambling regulator, the GGL, included prediction markets in discussions with other European authorities.
The European Securities and Markets Authority (ESMA) has also raised concerns that certain prediction market contracts may qualify as binary options, which are prohibited from being marketed, distributed or sold to retail investors in the EU.
These developments illustrate the different legal questions facing platforms that offer contracts tied to sporting, political and financial events.
The debate was also prominent at SiGMA World Rome, where representatives from gambling and blockchain businesses expressed contrasting views.
Francesca Broggi, vice president of Italian gambling association LOGiCO, criticized prediction markets for potentially creating unfair competition.
Her concerns centered on the costs faced by licensed gambling operators, including regulatory fees and taxation, compared with platforms operating outside national licensing frameworks.
Other industry representatives supported developing clearer rules rather than restricting the sector.
Fiorentina D’Amore of Blockchain.com advocated a common European framework incorporating gambling, cryptocurrency and financial regulations.
Alessandro Brigato of Blockchain Italia argued that existing gambling operators could benefit from entering the prediction market sector.
The disagreement reflects uncertainty over whether these products should be regulated primarily as gambling services, financial instruments or a combination of both.
The central regulatory question remains how prediction market contracts should be classified.
Lyman has challenged comparisons between event contracts and binary options, arguing that their structural differences deserve consideration.
Depending on their characteristics, some products may fall under gambling legislation or financial regulations such as MiFID II. Cryptocurrency-related features may introduce additional regulatory considerations.
However, Gibraltar’s licensing framework does not override restrictions imposed elsewhere.
Lyman acknowledged that operators must enter other markets individually through appropriate local authorization or partnerships.
This limits the immediate commercial advantages of Gibraltar’s early licensing approach.
Vladimir is a senior iGaming writer and editor, adept at breaking down the key details of crypto casinos and sportsbooks so players don’t have to, delivering honest, player-focused information that actually matters.
