Gibraltar Unveils Groundbreaking Prediction Markets Framework as ADI PredictStreet Secures First Licence

Gibraltar has become the first jurisdiction worldwide to introduce a purpose-built regulatory framework for prediction markets, creating a dedicated licensing regime separate from both gambling and financial services legislation.

The new regulations, announced by the Ministry of Justice, Trade and Industry, establish a bespoke supervisory structure for businesses operating prediction markets, with ADI PredictStreet becoming the first company to receive a licence under the framework. Wire Markets Ltd, a subsidiary of Wire Industries Inc., has also been granted approval in principle.

The move positions Gibraltar at the forefront of a rapidly expanding sector, providing operators with a clear regulatory pathway designed specifically for prediction market activities rather than adapting existing gambling or financial regulations.

Dedicated Framework Designed for Prediction Markets

Unlike traditional licensing models, Gibraltar's regime has been built exclusively for prediction markets, recognising the unique characteristics of the sector and the need for tailored oversight.

The framework is centred around five key regulatory pillars:

1. Market integrity and oversight of trading activity
2. Consumer protection measures
3. Approval of eligible event contracts
4. Surveillance to detect market abuse, financial crime and integrity risks
5. The use of digital assets, including stablecoins, for funding and settlement

The standalone structure is intended to provide regulatory certainty while ensuring operators maintain high standards of transparency, security and responsible governance.

Government Focuses on Responsible Innovation

Announcing the new regime, The Hon Nigel Feetham KC MP, Gibraltar's Minister for Justice, Trade and Industry, said the objective is to support innovation without compromising regulatory standards.

He commented:

"Gibraltar's approach is to regulate innovation responsibly by providing a clear regulatory framework for operators that wish to conduct prediction market activities under this regime, where it is the appropriate regulatory framework for their business. The focus is not on labels, but on ensuring that the chosen framework is capable of effective supervision and robust standards of market integrity, transparency, participant protection and financial crime prevention."

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