Nevis Creates Dedicated Licensing Regime for Prediction Markets

The Caribbean island of Nevis, part of Saint Kitts and Nevis, has put a dedicated regulatory framework for prediction markets into effect. The new regime, administered by the Nevis Online Gaming Authority (NOGA), targets both consumer-facing operators and technology and service providers. Companies wishing to enter this sector will be able to apply for the "Nevis Prediction Market License."

The license covers binary and multi-outcome markets. Sports, politics, elections, financial and economic indicators, entertainment, weather events, climate-related developments, cryptocurrencies and other digital assets fall within its scope. NOGA has said that corporate due diligence, anti-money laundering and customer protection standards will be incorporated into the framework. The aim is to protect market integrity and reduce the risk of manipulation on platforms.

NOGA Chief Executive Officer Nuri Katz said that as prediction markets grow, regulatory approaches should reflect how platforms operate and the risks these activities carry. Katz stated that the authority aims to provide clarity for businesses entering the sector and to keep market integrity and participant protection at the center of the licensing process.

The framework in Gibraltar was created after authorities had previously granted a gambling license to ADI Predictstreet. The idea of regulating prediction markets separately from traditional gambling is being debated in many countries. In the United States, these markets are regulated as financial instruments under the supervision of the Commodity Futures Trading Commission (CFTC), and Kalshi and Polymarket have grown under this model. However, states such as New York, Arizona and Utah argue that these products should be treated as gambling. Utah has filed criminal charges against Kalshi, while Arizona alleges that the company is conducting illegal gambling within the state's borders.

In Europe, only Gibraltar has opened its doors to the sector. Regulators in many EU member states have issued decisions banning prediction market platforms. This situation has led small jurisdictions to see an opportunity to become regulatory hubs for the industry.