Gibraltar has become the first jurisdiction in the world to implement a regulatory framework for prediction markets, an achievement that marks a significant step forward in the rapid expansion of this sector.
The announcement was made by Nigel Feetham KC MP, Gibraltar’s Minister of Justice, Trade, and Industry, who called this decision the fulfillment of the promise made at the beginning of the year to make Gibraltar the world’s center for prediction markets.
According to Nigel Feetham KC MP, Gibraltar’s Minister for Justice, Trade and Industry:
Earlier this year, during a visit to Hong Kong, I identified a clear commercial opportunity to further diversify Gibraltar’s economy through the emerging prediction markets sector. Since then, I have engaged extensively with industry leaders internationally to better understand the technology, market infrastructure and regulatory considerations underpinning this rapidly evolving sector.
With the framework operational, Gibraltar is planning to grant its first license for a prediction markets. The government has already issued Approval in Principle for one operator and is planning to do the same thing for another one soon.
Speaking about the launch, Feetham observed that the regulation was drawn up through many months of work with representatives of the industry to ensure proper regulation promoting innovation while guaranteeing good oversight.
This regulation is the outcome of many months of close cooperation with the representatives of the industry who contributed to creating a viable yet innovative regulation. The move also comes as regulators worldwide continue to distinguish prediction markets from sports betting, with both products operating under different legal and regulatory models.
Feetham also expressed on this occasion that the new bill has the potential for exhibiting positive economic factors for Gibraltar, as it helps create good conditions for fostering the regulatory environment for the fast-growing worldwide industry as well as for attracting investments and skilled specialists.
Looking ahead, Feetham said the framework represents more than just new legislation:
This is more than a new regulatory framework; it is a statement of intent. My ambition is to position Gibraltar as a leading jurisdiction for responsible digital innovation and for the development of new markets underpinned by high regulatory standards. Together, they demonstrate Gibraltar’s commitment to remaining at the forefront of innovation by developing forward-looking frameworks that enable new sectors to grow with confidence.
The prediction markets regulation follows the recently enacted rule on tokenisation legislation thus becoming the second major regulatory initiative introduced by the government in a short period of time.
