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ESMA warns prediction markets pose investor and integrity risks in Europe

Regulation

The European Securities and Markets Authority warned in its latest risk report that prediction markets raise investor protection and market integrity concerns. ESMA cited risks including financial loss, addictive behaviour, market manipulation and insider trading, and said the platforms require continued monitoring.

The warning signals regulatory scrutiny for prediction-market operators and platforms serving European users.

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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.

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