Gibraltar approves first framework for prediction markets
Gibraltar, a British overseas territory located on the border with Spain, approved the Prediction Markets Regulations 2026 and became the first jurisdiction in the world to establish a regulatory framework for this segment. The regulations have already come into force as part of the Gambling Act 2025.
The regulations, announced by the Minister for Justice, Trade and Industry, Nigel Feetham, formally establish a legal framework for prediction market operators and their contracts, and differentiate the segment from traditional gaming and betting activities. According to the regulations, a prediction market is defined as a system, platform, or mechanism that facilitates the creation, trading, or settlement of prediction market contracts, i.e., financial instruments whose value is determined by the occurrence or non-occurrence of a specific event or outcome. One of the most relevant aspects is Article 4, which states that the activity will not be classified as a bet, game, or lottery solely because it exhibits characteristics typical of this type of market, which provides legal certainty to operators and creates an independent regulatory category within Gibraltar's gambling legislation.
The new rules also grant the regulatory authority the power to prohibit or restrict certain categories of contracts when they are deemed contrary to regulatory objectives or the public interest. Contracts that may be restricted include those related to criminal activities, deaths, serious injuries, terrorism, wars or armed conflicts, as well as events whose settlement cannot be objectively carried out or that involve a high risk of market manipulation, consumer detriment, disorderly operations, or damage to the territory's reputation.
Licensed operators will be required to implement extensive market integrity measures, including systems to prevent, detect, and combat manipulation, insider trading, wash trading, and collusion among participants. They must also adopt policies to identify, manage, and disclose conflicts of interest to ensure fair and orderly trading, provide accurate and transparent information to participants, and maintain robust controls for the prevention of money laundering and terrorist financing.
The initiative comes after Gibraltar approved ADI Predictstreet in March and granted a license to WagerWire in June, the first two authorized prediction market operators in the territory. Feetham stated that this is more than a new regulatory framework; it is a statement of intent, and its objective is to position Gibraltar as a leading jurisdiction in responsible digital innovation and in the development of new markets supported by high regulatory standards. According to the official, the territory will soon issue the first license under the new regime, another company has already received in-principle approval, and a new approval is expected in the coming weeks. The minister explained that the framework was developed after months of collaboration with industry stakeholders to create a regime that balances innovation with robust oversight, and added that it offers regulatory certainty to a rapidly evolving global industry while creating opportunities to attract investment, generate high-value jobs, and diversify the local economy. The initiative comes at a time when other jurisdictions are also evaluating regulating the sector, including Malta, which had already expressed its intention to develop its own framework.
Tags: Gibraltar, Nigel Feetham, prediction markets, ADI Predictstreet, WagerWire