Nine European Gambling Regulators Launch Coordinated Crackdown on Unlicensed Prediction Markets During World Cup

Gambling regulators from nine European countries announced a joint initiative on June 18 to crack down on prediction market platforms operating without local gambling licenses, citing consumer protection concerns amplified by the surge in betting activity surrounding the 2026 FIFA World Cup. The coordinated action marks the most significant multinational regulatory response to prediction markets to date.

The participating regulators represent Belgium, France, Germany, Italy, the Netherlands, Poland, Portugal, Spain, and Switzerland. In a joint statement, the nine authorities said they would increase cross-border information sharing, monitor advertising compliance, and take enforcement action against platforms that fail to comply with their respective national gambling laws.

Planned Enforcement Measures

The joint initiative outlined a range of potential enforcement tools available to the nine regulators. These include formal warnings, service blocking, fines, advertising restrictions, and account freezes — particularly targeting operators that rely on offshore or decentralized crypto-based licenses that the regulators said do not constitute valid local authorization.

Spain’s gambling regulator, the Directorate General for the Regulation of Gambling, had already taken action in May by temporarily blocking both Polymarket and Kalshi, finding that the platforms were offering services in Spain without the mandatory administrative licenses required under national law. France and the Netherlands have also implemented geoblocking measures targeting prediction market operators. The new joint action formalizes and extends those individual steps into a coordinated European framework.

The Consumer Protection Argument

The regulators described several specific consumer protection concerns that motivated the action. Prediction market platforms, they argued, offer round-the-clock access to betting-like products without mandatory betting limits or cooling-off periods, increasing the risk of gambling-related harm. Weak age and identity verification processes were cited as an additional concern, particularly for younger users who might be drawn to the platforms during a major international tournament.

The nine regulators also issued a pointed warning to sports organizations, urging leagues, federations, and clubs to verify the legality of any prediction market partners before entering sponsorship or commercial agreements. The warning reflects growing concern in European regulatory circles about the pace at which platforms like Kalshi and Polymarket have signed high-profile sports partnerships — including Kalshi’s deal with Madison Square Garden — without having obtained gambling licenses in many of the markets where their users are located.

A Diverging Regulatory Landscape

The European crackdown stands in sharp contrast to the approach taken in the United States, where the CFTC has designated several prediction market platforms as Designated Contract Markets and the central question of federal versus state jurisdiction remains unresolved. While American regulators debate whether event contracts are financial instruments or gambling products, European authorities have moved decisively to treat them as the latter, requiring local licensing and consumer protections consistent with those applied to traditional sportsbooks.

For U.S.-based prediction market operators seeking international growth, the European enforcement push represents a significant barrier. The legal status of prediction markets varies sharply by jurisdiction, and the coordinated European response suggests that expanding beyond regulated U.S. markets will require substantial compliance investment — if it is possible at all under current national frameworks.