In a report addressing the regulation of prediction markets, the European Securities and Markets Authority (ESMA), which oversees the EU securities market, pointed out that major prediction market operators Polymarket and Kalshi do not possess the necessary authorization to sell event-based contracts within the EU. The authority also questioned the effectiveness of the measures both companies have taken to restrict access for users in certain EU member states.
According to the authority, event-based contracts that involve betting on asset prices, political outcomes, sports results, etc., depending on their nature, fall under EU financial...