PR in the Philippines

(AsiaGameHub) –   Gibraltar is acting swiftly to establish itself as a leader in technology, making prediction markets and tokenisation core parts of its regulatory approach.

In remarks made before his journey to Consensus Miami, Justice, Trade and Industry Minister Nigel Feetham clarified the strategy: move early or face the possibility of falling behind.

His statements highlight a focused effort to grow Gibraltar’s current digital assets and gaming landscape into related areas, stating the intention to ‘lead from the front’.

Gibraltar’s jump into predictions

The jurisdiction has already started issuing licences to prediction market operators, demonstrating a readiness to act more rapidly than larger regulators who are still evaluating how to categorise and oversee this sector.

Nations such as the UK, France, and the Netherlands have all indicated that prediction markets would require gambling licences – a step most firms are reluctant to take as it would label them as gambling businesses.

Feetham presented the quick licensing of the widely talked-about ADI Predictstreet in Gibraltar as a competitive edge rather than a regulatory danger, noting that more applications are already underway.

He also cited US President Donald Trump, whose government has been considerably more receptive to prediction markets than that of his predecessor, Joe Biden.

The Commodity Futures Trading Commission (CFTC) shifted from strong opposition under Biden to initial neutrality and then full support under Trump.

“President Trump is right. In a fast-moving global market, countries that stand still risk being left behind,” said Feetham.

“That is why Gibraltar is moving at pace across key digital sectors including AI, digital assets, and prediction markets, supporting innovation and expanding the ecosystem we have already built.

“We have chosen to act early on the licensing of prediction markets because Gibraltar is not only ensuring it is not left behind, we intend to lead from the front.

“We are already seeing strong interest following the recent licensing of an operator and expect to progress a number of new applications.”

Gibraltar keeps eye on emerging tech

Tokenisation is the next focus. Draft laws are finished and should be released soon, fulfilling pledges made earlier this year.

The goal is to build a clear framework enabling tokenised assets to evolve within a regulated setting, similar to Gibraltar’s prior strategy for digital assets.

This regulatory drive coincides with prediction markets gaining global momentum, especially around major sports events. As noted, FIFA has entered this arena via a new partnership with ADI Predictstreet.

Nevertheless, initial limitations persist. Since ADI Predictstreet is presently licensed only in Gibraltar, its ability to access other regulated markets is restricted.

Feetham may well be urging other jurisdictions to emulate Gibraltar, as with a single licence, ADI Predictstreet can only serve Gibraltar’s approximately 40,000 residents.

Indeed, prediction markets are increasingly featuring next to traditional sports betting and media deals, as shown by recent agreements like Polymarket’s partnership with LaLiga’s US business arm.

However, numerous ethical concerns have been raised – from insider trading and the morality of geopolitical markets, to the argument over whether predictions constitute gambling or a financial service.

These concerns were voiced again just this morning, with a gambling addiction expert demanding prediction market regulation in Ireland.

Opportunities in prediction markets are evident, driving Gibraltar’s speedy action, but hasty regulation could trigger various problems soon, which may be discouraging other European countries from acting.

The controversies surrounding Kalshi and Polymarket serve as clear examples of the potential risks.