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Prediction markets: The emerging regulatory headache

Paul Townend riding Il Etait Temps clear the last to win The Betfair Tingle Creek Chase at Sandown Park Racecourse on December 06, 2025 in Esher, England.
Photo: Alan Crowhurst/Getty Images

To what extent do the business activities of prediction market platforms fall within the scope of financial services regulation in European jurisdictions?

In recent months, online platforms where users can place bets on outcomes of an endless variety of future events (from sports and political elections to geopolitical events) have gained enormous traction. Instead of trading an asset (like a stock or bond) on a financial market, a user participating in these

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