Gibraltar has entered the prediction markets space by issuing its first license in the segment, a move tied to both economic pressure and efforts to broaden its gambling sector.
The license went to Predict Street Ltd, approved on 26 March under the 2005 Gambling Act as a betting intermediary. Regulators issued the license before updated gambling laws came into force, relying on the existing framework. Officials also pointed to the speed of the process.
Nigel Feetham, Minister for Justice, Trade and Industry, described the segment as a growth opportunity. “We expect this to be a substantial area of growth for Gibraltar,” he told parliament. He also addressed the timing of the approval. “A new licence has been issued, not withstanding that the new Gambling Act had not yet been brought into force and the new licence had to be issued under the previous legislation. This represents record timing for the issuing of a regulatory licence in Gibraltar,” he said.
New Model Gains Regulatory Backing
Predictstreet.io lists a launch date of 9 April and promotes its role as the official prediction market partner of the 2026 FIFA World Cup. The platform uses blockchain infrastructure from Abu Dhabi-based ADI Chain.
Prediction markets differ from traditional betting by allowing users to speculate on outcomes in a format closer to trading. Gibraltar’s move places it ahead of most European jurisdictions, where the model lacks clear regulation.
Economic Factors Behind the Move
The decision comes as Gibraltar faces pressure from UKtax changes, including increases to Remote Gaming Duty and Remote Betting Duty. These could raise the effective tax burden on operators to between 80% and 100%.
Feetham said authorities are working to strengthen Gibraltar’s position. “Since the introduction of the recent UK gambling duty increases, I have taken a more direct responsibility for promoting Gibraltar’s regulatory offering,” he noted.
The sector employs about 3,500 people and generates roughly one-third of government tax revenue. In a statement on 1 December, Feetham said: “This is an issue of vital importance to Gibraltar and one that may directly and indirectly affect our public revenues.”
Europe Takes Diverging Approaches
Gibraltar becomes the first European jurisdiction to license a prediction markets operator, while Malta is exploring similar regulation. On 26 March, Economy Minister Silvio Schembri said Malta was “actively exploring the emerging field of prediction markets, an area experiencing rapid global momentum which presents significant opportunities for innovation”. He added that any framework must be “supported by a clear, forward-looking legislative framework that enables it to develop responsibly and at scale”.
Other countries maintain tighter controls. Germany and the Netherlands restrict novelty betting, while France and the Netherlands treat many prediction platforms as unlicensed gambling or financial instruments, blocking operators such as Polymarket.
Industry data still shows user interest. Ismail Vali of Gaming Compliance International has pointed to engagement patterns indicating continued European participation.
Gibraltar’s move highlights its attempt to position itself within a developing market while adapting to regulatory and economic pressures.
Source:
“Gibraltar licenses first prediction market operator“, igamingbusiness.com, Apr 1, 2026
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