Hong Kong PR

(AsiaGameHub) –   Malta might be the first European country to develop a specialized regulatory framework for prediction markets.

Malta – Economy Minister Silvio Schembri stated that the government is looking into the potential regulation of prediction markets in Malta. He characterized the sector as having robust global momentum and notable potential for innovation.

Per Business Now, Schembri made these remarks at the opening of Blockchain.com’s new Malta offices. Schembri is said to have noted that any legislative adjustments would need to be grounded in a framework aimed at supporting responsible growth on a large scale. He emphasized that user trust was vital, and transparency and compliance were necessary for the industry to thrive.

Prediction markets have grown quickly around the world alongside the rise of platforms like Kalshi and Polymarket. This model has seen especially rapid growth in the US, where regulated betting is restricted to sports. That said, regulatory oversight has also been increasing.

Operators often position prediction markets as financial instruments instead of gambling, claiming this lets them operate without a gambling license. But several US states have pushed back against this, and the British Gambling Commission has made it clear that prediction markets would need a gambling license under UK law. Additionally, there are regulatory worries about how outcome data is collected and verified after multiple disputed events.

A number of other countries—France, Germany, Belgium, and Portugal among them—have imposed bans on Polymarket.

Malta became a key igaming hub after being the first European Union (EU) member to regulate remote gaming in 2004. The country purposefully developed the industry to diversify its economy away from tourism, and the sector now accounts for 12% of Malta’s GDP. Should Malta choose to develop a specialized regulatory framework for prediction markets, it would mark another European milestone.