Daily · Prediction Markets & Sports Licensing · July 3, 2026
Prediction markets under scrutiny
The European Securities and Markets Authority (ESMA) is issuing a warning to firms as prediction markets—often called event contracts—gain global popularity. These are products where the payout depends on a simple yes-or-no answer to a question about a future event. For businesses launching these platforms, the critical risk is that these contracts may be legally classified as binary options, which are subject to strict intervention measures and restrictions in the EU to protect retail investors. Companies must now urgently assess whether their product offerings fall within these existing bans to avoid regulatory penalties or forced market exits.
UK hospitality hours expanded
In the UK, the government has amended the Licensing Act to support the 2026 FIFA World Cup. Licensed premises and qualifying clubs can now extend their operating hours starting at 10 p.m. on July 5 for the round of 16 match. Furthermore, the extension for the final on July 19 has been moved earlier to 10 p.m. (previously 11 p.m.) should England be participating. This change provides a direct revenue opportunity for the hospitality and leisure sectors, allowing venues to capture additional spend during high-traffic tournament matches.
The United States has no regulatory updates to report today.
This overview is informational, not legal or compliance advice. Consult your lawyer or compliance specialist on specific decisions.
Sources
This overview is based on official regulator publications for the period: