In a move that could once again place the Mediterranean hub at the forefront of digital regulation, Economy Minister Silvio Schembri has confirmed that Malta is “actively exploring” a formal framework for online prediction markets.
Speaking at the inauguration of Blockchain.com’s new regional headquarters, Schembri positioned this initiative as the next logical step in Malta’s strategy to lead fast-moving digital industries.
A First in European Regulation
The surge in prediction market popularity is undeniable; US-based giants like Polymarket and Kalshi processed more than $37 billion (€31.5bn) in wagers during 2025. While nations like Portugal and the Netherlands have moved to restrict access to these platforms, Malta intends to provide a “clear, forward-looking legislative framework” that fosters responsible growth.
Minister Schembri emphasized the need for early intervention:
“We are actively exploring the emerging field of prediction markets, an area experiencing rapid global momentum which presents significant opportunities for innovation, provided it is supported by clear, forward-looking legislative framework that enables it to develop responsibly and at scale.”
Leveraging a Legacy of Innovation
Malta’s proactive stance mirrors its 2018 decision to regulate blockchain and crypto assets years before the European Union’s MiCA framework. By establishing standards for transparency and compliance, Malta hopes to differentiate itself from regions where the legal status of event-based contracts remains broken or uncertain.
“We recognised early on that users need to feel safe if this industry was going to grow, which means it needed to uphold the highest standards of transparency and compliance,” Schembri added.
If successful, Malta would become the first European jurisdiction to provide a standardized “green light” for prediction markets, potentially attracting the next wave of financial technology innovators to its shores.
