Gibraltar issues licence to its first prediction markets operator

(AsiaGameHub) –   Gibraltar has issued its first license to a prediction markets operator, as announced by Minister for Justice, Trade and Industry Nigel Feetham in parliament on Tuesday.

The minister expressed optimism about the prediction markets sector, stating, “We expect this to be a substantial area of growth for Gibraltar.”

He further noted that the new license was granted under existing legislation, as the new Gambling Act had not yet been enacted. “This represents record timing for the issuing of a regulatory licence in Gibraltar,” he added.

According to Gibraltar’s gambling license register, Predict Street Ltd was licensed as a betting intermediary on March 26th, operating under the 2005 Gambling Act.

The website Predictstreet.io identifies itself as the official prediction market partner for the upcoming Fifa World Cup 2026 and displays a countdown to its launch on April 9th.

The company is supported by ADI Chain, a blockchain provider based in Abu Dhabi.

Shows Gibraltar’s ability to adapt

During his parliamentary address, Feetham highlighted this development as evidence of Gibraltar’s capacity for rapid adaptation, particularly in light of recent UK gambling tax increases that have posed a threat to the territory’s significant gaming industry, which largely caters to the UK market.

“Since the introduction of the recent UK gambling duty increases, I have taken a more direct responsibility for promoting Gibraltar’s regulatory offering,” he stated.

The increases in Remote Gaming Duty and Remote Betting Duty, with the former taking effect today, are anticipated to have a considerable impact on Gibraltar, potentially raising the tax rate for operators based there to between 80% and 100%.

Gibraltar’s gambling sector directly employs approximately 3,500 individuals, according to figures presented in a recent UK parliamentary debate, and contributes roughly one-third of the territory’s tax revenue.

Feetham previously stated on December 1st, “This is an issue of vital importance to Gibraltar and one that may directly and indirectly affect our public revenues.”

Will prediction markets pick up in Europe?

Gibraltar is the first European market to directly license a prediction markets operator. Malta, however, announced last week that it is also developing a regulatory framework for this sector.

On March 26th, Malta’s Economy Minister Silvio Schembri commented that the country was “actively exploring the emerging field of prediction markets, an area experiencing rapid global momentum which presents significant opportunities for innovation.”

He emphasized that any legislative changes would require “a clear, forward-looking legislative framework that enables it to develop responsibly and at scale.”

In contrast, other markets have adopted a more stringent approach to prediction markets, which are currently under scrutiny from gambling regulators in the United States.

Germany and the Netherlands have implemented strict regulations concerning novelty markets in sports betting. Prediction markets are largely considered illegal gambling or unlicensed financial instruments in countries like the Netherlands and France, both of which have blocked the prominent operator Polymarket.

Ismail Vali, president of RegTech firm Gaming Compliance International (GCI), recently informed iGB that data on traffic and engagement suggests that prediction markets continue to attract European users despite official prohibitions.