The Gibraltar government has introduced a dedicated regulatory framework for prediction markets, marking the first licensing region to treat the sector as a standalone vertical. Minister Nigel Feetham announced the regulations on Monday, with the rules published in the Gibraltar Gazette as part of the new Gambling Act 2025.
Regulatory Framework and Oversight
The 24-page document applies an activity-based and risk-based approach to sector oversight. It addresses market integrity, participant protection, financial crime prevention, operational resilience and objective settlement. An independent supervisory panel will monitor implementation, while the Gambling Authority retains discretion to restrict contracts deemed contrary to public interest, including those tied to criminal conduct, mortality, severe injury, terrorism or armed conflict.Operator Requirements and Licensing
Companies must secure approval and certification for all event contracts, which must be clearly defined, resistant to manipulation and capable of objective resolution. Operators are required to implement internal systems to prevent market manipulation, insider trading and misuse of confidential information. The framework also acknowledges the role of prediction markets in aggregating data and facilitating price discovery.Initial licensing activity began earlier this year. During a parliamentary session in April, Feetham noted that the first licence had been issued to ADI Predictstreet under the previous legislative regime before the new act took effect. The regulator has since granted a second licence and reported substantial interest from prospective applicants, including internationally established businesses.