European Regulators Target Unlicensed Prediction Markets

European gambling regulators have joined forces to take action against prediction market platforms operating without licenses, strengthening cross-border cooperation ahead of the 2026 FIFA World Cup as concerns grow over the expansion of unregulated operators across the region.

Regulatory authorities from France, Germany, Italy, Poland, Portugal, Spain, Switzerland and the Netherlands have agreed to enhance collaboration and increase oversight of prediction market platforms. While these markets have gained traction in both Europe and the United States, European regulators generally classify them as gambling products when offered without the necessary authorization.

In a joint statement, the regulators warned that unlicensed prediction markets pose growing risks to consumers and could undermine the integrity of regulated gambling sectors.

The authorities highlighted concerns surrounding unrestricted access, the absence of betting limits and the lack of cooling-off mechanisms, which they believe may increase gambling-related harm, particularly among vulnerable groups such as minors. They also noted that many offshore platforms fail to implement sufficient age verification, identity checks and player protection measures.

Regulators further urged sports organizations to ensure that any partnerships with prediction market operators comply with national gambling laws. Failure to do so could create conflicts with regulatory requirements and expose organizations to potential enforcement action.

To address these concerns, authorities plan to strengthen information sharing and coordinate enforcement efforts during the upcoming World Cup and beyond. Potential measures include formal warnings, advertising restrictions, financial penalties and website blocking orders.

Several regulators have already taken action against major prediction market platforms. Spain, for example, has ordered the blocking of both Polymarket and Kalshi, arguing that neither operator held the required authorization to offer services in the country. Similar enforcement actions have also been reported in France and the Netherlands.

The rapid growth of prediction markets has been linked to the increasing adoption of cryptocurrencies and the rise of social trading products, which continue to blur the distinction between traditional sports betting and other speculative markets. However, differences in regulatory frameworks across Europe continue to make coordinated enforcement a challenge.