Gibraltar Prediction Market Rules Allow Stablecoin Payments

Gibraltar brought its Prediction Market Regulations 2026 into force on Monday, creating a dedicated licensing regime for prediction market operators that sits outside the territory's gambling licences.

The rules, numbered LN.2026/176 and made under the Gambling Act 2025, took effect on the day of publication and treat authorised prediction market activity as a distinct activity, not betting, gaming or a lottery.

Operators must hold a "prediction market authorisation" and appear on a public register to claim exemption from Gibraltar's general prohibition on gambling. The Authority has up to six months to decide a complete application, and every contract class must be approved or certified, clear, capable of objective settlement and not readily open to manipulation. Regulators can prohibit contracts tied to criminal conduct, death, serious injury, terrorism, or war.

Notably, Regulation 22 expressly permits digital asset payments, including stablecoins, for funding accounts, posting collateral, settling trades and processing withdrawals.

Gibraltar is positioning itself as a regulated home for prediction markets at a moment when US venues like Kalshi and Polymarket are fighting over whether event contracts count as gambling. By carving the activity out of gambling law and welcoming stablecoins, the territory is openly courting crypto-native operators.

Decisions can be appealed to the Supreme Court within 28 days, though there is no appeal against an outright refusal of authorisation. For players, the payoff is a jurisdiction where prediction-market operators face client-money, disclosure and AML duties that offshore sites do not carry.

What Does This Mean For Players?

Participants now get defined protections. Operators must segregate client money, disclose fees, risks and settlement sources, and run an appropriateness test before letting someone trade, issuing a written warning when it is not suitable.

The Authority can impose maximum exposure limits and cooling-off periods, and operators must keep an approved wind-down plan and comply with the Proceeds of Crime Act 2015 and Sanctions Act 2019.

Image credit: Unsplash