European Lotteries Urges Regulators to Assess Prediction Markets by Risks Not Labels
European Lotteries advises treating prediction markets by their risks and legal nature, not marketing labels. It calls for country-by-country regulation first due to varied Member State frameworks, followed by Europe-wide talks. The position reflects US financial versus European gambling classifications.
SCCG Take — Regulators should align safeguards to product risks over technology labels. This national-first path will shape how operators navigate compliance across Europe.
The European Lotteries has called for caution in how policymakers and business leaders approach prediction markets from a regulatory standpoint. The umbrella organisation for state-owned lotteries across Europe published advice to treat these offerings according to their legal characteristics and associated risks rather than the marketing language or technology involved.
Prediction markets are seen as financial instruments in the US, where they originated as event contracts on various outcomes. In Europe regulators generally treat them as gambling products, though Gibraltar launched a separate framework earlier this year. The division was evident at the Global Prediction Markets Forum on the final day of SBC Summit Lisbon, with participants from Kalshi, WagerWire and government representatives from Gibraltar and Malta.
Emphasis on Technical Details First
The European Lotteries stated that optimal understanding requires a country-by-country approach at the outset, given the different regulatory frameworks across Member States. Only once national details are addressed can an international discussion produce a tangible Europe-wide strategy.
Piet Van Baeveghem, EL Secretary General, concluded: “Prediction markets are developing rapidly, and regulation should keep pace. EL’s position is simple: activities that present similar risks should be subject to similar safeguards. The focus should be on the nature of the product and activity, rather than the label or underlying technology attached to it.”
Risks of Label-Driven Policy
This position directs attention to the substance of the activity when shaping rules. European regulators face the task of matching safeguards to actual risks while prediction markets expand. The EL stance supplies a baseline for ensuring consistent treatment regardless of how products are presented.
Reporting: SBC News
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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