Malta Considers Framework For Prediction Markets

Malta has begun examining how to introduce a legal structure for prediction markets, with officials signaling that the country could take an early position in regulating a sector gaining traction worldwide. Economy Minister Silvio Schembri confirmed that authorities are reviewing how such platforms could operate within a defined regulatory environment.

Speaking at the opening of Blockchain.com’s offices in Malta, Schembri said: “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.”

Government Reviews Fast-Growing Market Segment

Prediction markets allow users to place wagers on future outcomes, including elections, sports, and economic developments. The model has drawn increased attention as activity expands globally.

Platforms such as Polymarket and Kalshi have recorded significant volumes, with combined trading estimated at more than $37 billion (€31.5bn) in 2025. Other figures suggest totals exceeded $40 billion by year-end. Kalshi, operating under US oversight, has reportedly reached a valuation of around $20 billion.

Regulation remains inconsistent. Authorities in different jurisdictions classify prediction markets in various ways, while some countries restrict access to major platforms. Within the European Union, no unified framework exists, leaving member states to set their own rules.

Focus On Regulation, Trust, And Market Oversight

Schembri pointed to Malta’s earlier regulatory efforts as a reference point, noting how the country acted ahead of many European counterparts in areas such as blockchain and digital assets.

“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.”

Authorities now appear to be considering whether a similar approach could apply to prediction markets. Officials have indicated that any future framework would likely address issues such as consumer protection, market integrity, and financial safeguards. Areas under consideration include preventing manipulation or insider trading, ensuring fair payouts, and setting capital requirements for operators.

Malta has previously built a reputation for adopting early regulatory frameworks in emerging industries. It established rules for online gaming in the early 2000s and later introduced legislation for blockchain and cryptocurrencies in 2018, positioning itself as a hub for digital innovation.

Industry Growth Meets Regulatory Uncertainty

The timing of Malta’s exploration reflects ongoing uncertainty across global markets. In the United States, regulatory guidance and legal disputes in states such as Nevada and Arizona have created an uneven landscape. Across Europe, the absence of a unified system comparable to the Markets in Crypto-Assets framework has left companies navigating fragmented rules.

By considering a dedicated framework, Malta could offer companies a single jurisdiction with clearer legal expectations. Such a move would give operators a base within the EU from which to expand services while operating under defined standards.

The initiative remains at an early stage, though it signals the government’s intention to examine sectors linked to digital finance and technological change. As prediction markets continue to grow, Malta’s approach may influence how other jurisdictions respond to the sector’s expansion.

Source:

“Malta moves to shape rules for prediction markets”, businessnow.mt, March 25, 2026