SectorWire
SearchGet the daily briefing
Menu

ESMA clarifies rules for prediction markets and event contracts

Regulation

The European Securities and Markets Authority (ESMA) clarified how existing financial rules may apply to prediction-market event contracts, according to the report. Whether a contract is a financial instrument depends on its characteristics and underlying asset; some may also fall under national gambling laws or EU crypto rules.

Operators may face financial, gambling or crypto regulation depending on the features and underlying assets of their contracts.

Request a correction

Keep reading

Regulation

Kalshi records $25.3bn in parlay trading during midterm period

Kalshi recorded more than $1.1 billion in election trading during the 10 days around the US midterms, while parlays generated $25.3 billion over the same period, according to analysis of prediction-market data. Election trading accounted for 3% of platform volume; volume measures contracts exchanged, not revenue retained by the platform.

Kalshi processed more than $1.1 billion on elections during the 10 days surrounding the midterms, only 3% of the platform's volume. Over the same period, Kalshi processed $25.3 billion in parlays and also $6.1 billion in non-parlay sports contracts.

Continue reading