Key Highlights
- Justice Minister Nigel Feetham spearheads Gibraltar’s initiative to license prediction market platforms, with Predictstreet receiving inaugural approval in April
- Following licensure, Predictstreet secured designation as FIFA World Cup’s official prediction market partner
- Additional prediction market license approval anticipated in coming weeks, with further applications under review
- Gibraltar processes approximately 80% of United Kingdom wagering activity and provides jurisdiction for 54 gambling companies
- Recently enacted 2025 Gambling Act mandates all current licensees submit new applications by October under enhanced regulatory standards
The British Overseas Territory of Gibraltar is positioning itself as the premier destination for prediction market licensing, with Justice Minister Nigel Feetham championing the strategic initiative.
Speaking at the Consensus 2026 cryptocurrency conference in Miami, Feetham discussed his ambitions with Gambling Insider, characterizing prediction markets as a critical opportunity for Gibraltar’s continued development.
In April, the territory granted its inaugural prediction market license to Predictstreet. Shortly thereafter, the company secured a sponsorship agreement with FIFA, establishing itself as the World Cup’s designated prediction market platform.
Territory Maintains Commanding Position in UK Gambling Sector
Gibraltar’s prediction market licensing initiative leverages its established gambling infrastructure. The territory’s servers currently process four-fifths of all wagering activity originating from the United Kingdom.
Major British gambling enterprises including bet365, William Hill, Ladbrokes, and Entain relocated operations to the 6.7-square-kilometer territory beginning in 2001. Flutter Entertainment subsequently followed suit.
The operational shift commenced when then-UK Chancellor Gordon Brown eliminated the gambling tax that year. The policy change transferred tax obligations from consumers to operators, prompting companies to seek Gibraltar’s more favorable tax environment.
Presently, 54 operators maintain Gibraltar-based operations. This figure represents a fraction of jurisdictions like Curacao, which accommodates over 600 operators, or Malta, hosting more than 500.
Feetham characterizes this disparity as intentional. His licensing philosophy prioritizes regulatory quality over volume.
“We don’t believe in issuing licences and making up numbers by allowing just anyone to come to Gibraltar,” he said.
The jurisdiction imposes a 1% tax rate with a maximum threshold of ÂŁ425,000. Additionally, Gibraltar does not levy Value-Added Tax on marketing or gambling-related professional services.
Enhanced Regulatory Framework and International Standing
Gibraltar encountered challenges from international regulatory bodies in recent years. The Financial Action Task Force added the territory to its gray list in 2022 due to anti-money-laundering and counter-terrorism financing deficiencies.
These concerns have been resolved. The FATF removed the gray list classification in 2024. Subsequently, Feetham orchestrated Gibraltar’s removal from the European Union’s grey list in 2025.
The newly implemented Gambling Act of 2025, which became effective last month, requires all existing licensees to submit fresh applications by October. Applicants must demonstrate compliance with enhanced standards governing regulatory compliance, marketing practices, and affiliate partnerships.
A second prediction market license announcement is anticipated within weeks. Multiple additional entities are reportedly pursuing similar authorization.
Feetham has actively promoted Gibraltar’s regulatory framework internationally, including during a recent Abu Dhabi event featuring former UK Prime Minister Tony Blair.
While Gibraltar licensure does not automatically confer legal market access throughout Europe—particularly following Brexit—Feetham contends that Gibraltar licensing enhances corporate credibility and facilitates authorization in additional jurisdictions.
“The fact that you’re regulated and licensed in Gibraltar gives you the credibility,” he said. “It gives you access either to a market or indeed to the possibility of getting a license based on the fact that you’ve got a Gibraltar license, which is the gold standard for most other jurisdictions.”
European nations generally maintain conservative positions regarding prediction markets. In the United States, the sector has evolved into a contentious political issue.
Feetham expressed confidence in his strategic direction. He characterized his methodology as responsible and selective, mirroring the framework that established Gibraltar’s gambling sector over the preceding two decades.
Announcement of Gibraltar’s second prediction market licensee is expected imminently, following last month’s implementation of the new Gambling Act.
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