Malta moves to shape rules for prediction markets

Malta is “actively exploring” a legal framework that would provide regulatory clarity to online prediction markets, Economy Minister Silvio Schembri confirmed. 

“We are actively exploring the emerging field of prediction markets, an area experiencing rapid global momentum which presents significant opportunities for innovation, provided it is supported by clear, forward-looking legislative framework that enables it to develop responsibly and at scale,” Dr Schembri said yesterday at the launch of Blockchain.com's new Malta offices. 

Prediction markets are platforms where people can bet on future events, from election and sports results to whether US troops will enter Iran by a certain date and the number of tweets they think Elon Musk will publish in a certain timespan.

Dr Schembri pointed to prediction markets as the next frontier as he recalled how Malta had positioned itself as an early mover by regulating blockchain and crypto assets back in 2018, years before the EU regulated them through the MiCA framework. 

“We recognised early on that users need to feel safe is this industry was going to grow, which means it needed to uphold the highest standards of transparency and compliance.”

If Malta adopts a similar approach to prediction markets, it could become one of the first countries to establish a regulatory framework for what has become a fast-growing industry.

Two of the biggest players in the sector, Polymarket and Kalshi, both based in the US, amassed an estimated combined volume of over $37 billion (€31.5bn) in wagers placed in 2025.

However, EU regulation remains fragmented, with no unified framework in place and some countries banning or placing restrictions on Polymarket. 

Cover photo: Silvio Schembri