Prediction markets are expanding rapidly, allowing users to trade contracts linked to the outcome of future events, from elections and sports competitions to economic and other real-world events.
But how should these platforms be qualified under European gambling laws?
In this episode of Diritto al Digitale, Giulio Coraggio, a technology, data and gambling lawyer, looks together with the journalist Antonio Ravenna at the regulatory question that is becoming increasingly relevant for prediction market operators: when does a prediction market become gambling in Europe?
The qualification is far from being merely theoretical. Whether a platform falls within the scope of gambling regulation can affect licensing requirements, consumer protection obligations, advertising restrictions, AML requirements and the regulatory exposure of both operators and other businesses involved in the ecosystem.
I discuss the key elements that European regulators and courts may consider when assessing these platforms, including the role of chance, the user's stake, the nature of the underlying event and the way the platform is structured.
For operators entering the European market, the legal classification of the product can therefore become one of the first regulatory questions to address.
Are prediction markets the next frontier of gambling regulation in Europe?
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