Last week, our Regulatory team attended the iGB conference, joining industry professionals to discuss current developments across the iGaming sector.
One of the sessions focused on the long-term sustainability of prediction markets and the regulatory challenges they present. Speakers explored whether consumers may be more exposed to harm when prediction markets are presented as a financial product rather than gaming, arguing that this framing could lead users to underestimate the risks involved and overestimate their ability to predict outcomes.
The discussion also considered the broader regulatory debate, including how the UK’s approach to classifying prediction markets as gaming may influence the position in the US, where there is an ongoing debate over whether these products should instead be regulated as a financial product.
The session also examined the challenges prediction markets present in relation to insider trading and sports integrity. Speakers questioned whether gaming regulators have the same tools and expertise as financial regulators to address these issues, referencing a recent UK Gambling Commission case in which provisions under the Gambling Act were used to prosecute individuals involved in insider trading-related activity.
It was an insightful discussion on an evolving area of regulation that will continue to be closely watched by the industry.
