Prediction Markets Launch European Lobbying Blitz for Financial Services Classification
Polymarket is lobbying European regulators to classify prediction markets as financial derivatives providers instead of gambling operators. This follows Kalshi’s $20B valuation overtaking DraftKings’ $9.45B and dismissive comments from DraftKings’ Matt Kalish. The campaign mirrors the firm’s U.S. CFTC-regulated strategy amid state-level lawsuits.
SCCG Take — European regulators face a clear classification decision that could grant prediction markets lighter oversight than sportsbooks. Incumbents must assess licensing and compliance responses to this regulatory arbitrage.
Prediction market operators are intensifying efforts to enter European markets by seeking classification as financial services providers rather than gambling companies. Polymarket is leading the charge with direct meetings involving lawmakers and regulators. This push occurs against a backdrop of sharp rivalry with established sportsbooks.
DraftKings co-founder Matt Kalish dismissed prediction markets as “niche as fk” in comments first misattributed to CEO Jason Robins. Kalshi recently reached a US$20 billion valuation. That figure exceeds DraftKings‘ current worth of US$9.45 billion**.
Kalish also stated that prediction markets are not “remotely close to delivering the caliber of experience that regulated sportsbooks do.” Kalshi responded with a tongue-in-cheek reference to the Mean Girls meme asking why traditional operators appear obsessed.
European Regulatory Campaign
Polymarket has launched a full lobbying blitz to persuade European and UK regulators to treat its operations as financial services rather than gambling. According to iGaming Future, top Polymarket movers and shakers are meeting with European lawmakers in a concerted push to establish their platform as a commodity futures market.
A highly placed source confirmed to iGaming Future that Polymarket “has met–and is meeting–with some European financial state regulators because they want to get licensed in Europe.” The source added: “As in the U.S., they believe that contracts should be treated as derivatives, rather than bets.”
In its U.S. home market Polymarket holds CFTC oversight yet faces lawsuits from gambling regulators in Nevada, New Jersey, and New York. By contrast, ADI Predictstreet, FIFA’s official prediction markets arm, registered as a licensed betting company in Gibraltar.
Current Market Access and Rival Reactions
Polymarket and peer platforms remain freely accessible across Europe through VPN sites despite the regulatory uncertainty. The source material notes that prediction markets already handle trades on sports outcomes, Oscar nominations, and geopolitical events.
Traditional operators including DraftKings and FanDuel now confront a competitor pursuing a different regulatory path. The coverage leaves open how these incumbents will counter the classification strategy that bypasses gambling licensing frameworks.
The lobbying effort underscores a deliberate choice to replicate the U.S. derivatives approach in Europe. Outcomes of these regulator meetings will determine whether prediction markets secure a distinct operational lane on the continent.
Reporting: iGaming Future
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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