TLDR Gibraltar published a standalone regulatory framework for prediction markets on Monday under the new Gambling Act 2025. The rules require all event contracts to be approved by the Gambling Authority and be clear, objective, and resistant to manipulation. Two licenses have already been issued, including one to ADI Predictstreet and a pending one to US firm WagerWire. The framework arrives as US and European regulators still disagree on whether prediction markets count as gambling or financial products. Several European countries have already blocked major platforms like Polymarket and Kalshi over consumer protection concerns.
Gibraltar has become the first region in the world to create a standalone regulatory framework built just for prediction markets. The rules were published in the Gibraltar Gazette on Monday.
They fall under the territory’s new Gambling Act 2025. Minister Nigel Feetham led the effort alongside the Ministry for Justice, Trade and Industry.
The framework uses what officials call an “activity-based and risk-based approach.” This means rules are shaped around the specific risks prediction markets create.
Those risks include market manipulation, financial crime, and protecting people who place bets or trades. The document also covers governance and how disputes get settled.
What The New Rules Require
Every event contract offered by an operator must be approved and certified by the Gambling Authority first. Contracts also need to be clear and capable of objective settlement.
Operators must build their own systems to catch manipulation, insider dealing, or misuse of private information. The authority can block any contract it sees as against the public interest.
This includes contracts tied to crime, death, serious injury, war, or terrorism. Gibraltar’s regulator also formed an independent supervisory panel to oversee how the framework gets applied.
Feetham said the panel has experience managing complex digital and technology-based markets.
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