The World Lottery Association has urged regulators to treat sports prediction markets under the same rules that apply to traditional sports betting operators.
In a new paper, the WLA said platforms that allow users to profit from predicting the outcome of sporting events carry risks similar to regulated sports wagering and should therefore be subject to equivalent oversight.
The WLA warned that prediction markets could undermine licensed lotteries and regulated betting operators if they are allowed to offer sports-related products without the same safeguards, tax obligations and consumer protection requirements. The association said regulators should not rely solely on how prediction market platforms describe their products, particularly where users stake money on uncertain sporting outcomes and receive payouts if their predictions are correct.
The intervention comes as prediction markets face growing regulatory scrutiny in several jurisdictions. Operators such as Kalshi and Polymarket argue that event contracts can be treated as financial instruments, while gambling regulators in a number of markets have challenged whether sports-related contracts fall outside betting law.
The debate has intensified ahead of the 2026 FIFA World Cup, with sportsbooks and prediction market operators competing for one of the largest global betting events in the calendar.
For the lottery sector, the concern is that prediction markets may create a parallel sports wagering channel that reaches the same consumers while operating under a different regulatory framework.
The WLA’s position adds to wider pressure on policymakers to clarify the legal status of prediction markets. The central question is whether sports event contracts should be supervised as financial products, gambling products or a distinct category requiring new rules.
For regulators, the association’s message is clear: where prediction markets function like sports betting, they should be regulated like sports betting.
