Prediction markets regulation is under increased scrutiny during 2026 FIFA World Cup after nine European gambling regulators issued a joint warning and pledged action against platforms that fail to comply with national laws.
The regulators said they expect betting activity to increase during the tournament and warned that the growing popularity of prediction markets, particularly among young adults, raises consumer protection concerns. The joint statement was issued by gambling regulators from Belgium, France, Germany, Italy, the Netherlands, Poland, Portugal, Spain and Switzerland.
Prediction markets regulation concerns grow in Europe
In the statement, regulators said prediction market platforms have become increasingly popular in recent years. These platforms allow users to speculate on the outcome of sporting, political and geopolitical events. Regulators warned that prediction markets can have addictive features and may operate without safeguards in jurisdictions where they are not licensed.
According to the statement, some platforms operate around the clock and may lack betting limits, time restrictions and robust age-verification measures. Regulators said the combination of accessibility, visibility and social sharing features can contribute to harmful gambling behaviour.
Prediction markets regulation in focus during World Cup
The regulators said prediction markets must comply with licensing and regulatory requirements in each jurisdiction where they operate. They also warned that unregulated prediction market platforms can present risks including illegality, fund blocking, fraud involving insider information and financial volatility. The statement added that unregulated platforms may contribute to gambling-related harm.
The regulators said they would work together throughout the World Cup period to monitor compliance with rules covering advertising, betting integrity and player protection. They also pledged to take action where necessary against prediction market platforms that do not comply with local regulations.
Sports organisations urged to check legal status
The joint statement also called on sports federations, leagues and teams to verify whether prediction market platforms are lawful in their jurisdictions before entering into commercial partnerships.
Regulators said sporting organisations should ensure compliance with local laws before signing major sponsorship or partnership agreements involving prediction market operators.
Regulators plan cross-border cooperation
The nine regulators said they will strengthen cooperation during and after the FIFA World Cup through the exchange of information, expertise and regulatory best practice. They also indicated that many of the participating authorities will increase their social media activity during the tournament to promote safer gambling messages and consumer awareness.
The statement comes as regulators across multiple jurisdictions continue to examine how prediction markets should be treated under existing gambling and financial services laws, particularly as the products become more visible around major sporting events such as the FIFA World Cup.
Kalshi and Polymarket face regulatory pressure
Spain’s gambling regulator, the Directorate General for Gambling Regulation (DGOJ), temporarily blocked local access to prediction markets Kalshi and Polymarket. The regulatory action prevents the US-based platforms from operating without mandatory administrative authorisation, classifying these financial event markets as unlicenced games of chance.
The World Lottery Association has similarly intensified calls for tighter regulation of prediction markets, urging governments to regulate prediction markets under the same framework as sports betting. The association warned that the rapid growth of the sector poses risks to sports integrity, consumer protection and regulated lottery and betting markets worldwide.
In a new position paper, the association argued that any product offering a financial return based on the outcome of a sporting event should be regulated as a bet, regardless of whether it is presented as a financial contract or prediction market. The WLA said many operators use financial terminology such as “contracts” and “traders” while offering products that closely resemble traditional sportsbook markets.
Prediction markets are on track for explosive growth, with total trading volumes projected to reach $1 trillion annually by 2030, according to analysis from investment firm Bernstein. While sports-linked contracts currently dominate activity, analysts say the sector is expected to evolve rapidly as institutional investors, corporates and new use cases reshape demand. The debate around prediction markets regulation has intensified as platforms such as Polymarket and Kalshi continue to expand globally and attract scrutiny from gambling regulators.
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