Malta to consider regulation of prediction markets
Malta could become the first country in Europe to create a dedicated regulatory framework for prediction markets.
Malta.- Economy Minister Silvio Schembri has said that the government is examining the possible regulation of prediction markets in Malta. He described the sector as having strong global momentum and significant potential for innovation.
According to Business Now, Schembri made the comments at the inauguration of Blockchain.com’s new offices in Malta. Schembri reportedly said that any legislative changes would need to be anchored by a framework designed to support responsible growth at scale. He stressed that user confidence was essential and transparency and compliance were needed for the industry to flourish.
Prediction markets have expanded rapidly worldwide amid the growth of platforms such as Kalshi and Polymarket. The format has grown particularly fast in the US where regulated betting is limited to sports. However, there has also been growing regulatory scrutiny.
Operators tend to present prediction markets as a financial instrument rather than gambling, arguing that this allows them to operate without a gambling licence. However, several states in the US have challenged that, while the British Gambling Commission has clarified that prediction markets would require a gambling licence under UK law. There are also regulatory concerns over how outcome data is sourced and verified following several contested events.
Several other countries, including France, Germany, Belgium and Portugal have issued banning orders against Polymarket.
Malta established itself as a major igaming hub after it became the first European Union (EU) member state to regulate remote gaming in 2004. The nation deliberately cultivated the industry to diversify its economy from tourism, with the sector growing to represent 12 per cent of Malta’s GDP. If Malta decides to create a dedicated regulatory framework for prediction markets, it would be another European first.
