Gibraltar launches world's first prediction markets framework

A new regulatory milestone

Gibraltar has officially become the first jurisdiction in the world to adopt a bespoke regulatory framework for prediction markets, marking a significant step in the evolution of the global industry.

The announcement was made by Nigel Feetham KC MP, Minister for Justice, Trade and Industry, who described the new regime as the fulfillment of a commitment made earlier this year to create a clear regulatory path for prediction market operators.

Under the new legislation, prediction markets can now be licensed as betting exchanges, providing operators with a dedicated legal framework designed specifically for the sector.

First operators set to be licensed

The government confirmed that it will soon issue the first licence under the new regime. A second operator has already received an Approval in Principle, while another is expected to obtain the same status in the coming weeks.

According to Feetham, the framework was developed after months of consultation with industry stakeholders to ensure it meets the needs of a rapidly evolving market while maintaining strong regulatory standards.

Supporting investment and innovation

The new framework is intended to provide legal certainty for prediction market businesses while creating opportunities to attract international investment, generate high-value employment and further diversify Gibraltar's economy.

Feetham noted that the initiative forms part of a broader strategy to establish Gibraltar as a leading jurisdiction for responsible digital innovation and emerging financial and gaming technologies.

Part of a broader digital strategy

The prediction markets framework is the second major regulatory initiative introduced by the Gibraltar government in recent weeks, following the launch of new legislation covering tokenisation.

Together, the two regulatory frameworks reflect Gibraltar's ambition to remain at the forefront of innovation by creating modern legal environments that support the growth of emerging industries while maintaining high standards of governance and oversight.