ESMA examines prediction markets in September financial risk monitor
ESMA warns European operators face a different regulatory environment from the United States for prediction markets.
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ESMA examines prediction markets in its September risk monitor. Sports contracts accounted for 73% of Kalshi trading activity in the data reviewed, while ESMA warned that European operators and consumers face a different regulatory environment from the United States.
Also in this report: Kalshi · Polymarket · Robinhood · Pariflow
PredictIt chief strategy officer Flip Pidot said the US Supreme Court could consider the prediction market jurisdiction dispute by June next year. He based that assessment on potentially conflicting appeals court rulings as the CFTC and state authorities dispute oversight of event contracts.
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ESMA warns European operators face a different regulatory environment from the United States for prediction markets.
Potentially conflicting appeals rulings could bring the CFTC-state dispute over event contract oversight before the Supreme Court, according to Pidot.
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