The European Securities and Markets Authority (ESMA) warned that some prediction market contracts could be subject to prohibition measures by the European Union (EU). According to CoinDesk, ESMA emphasized in an official statement that "Yes-or-No event contracts that qualify as financial products cannot be marketed, distributed, or sold to retail investors under current regulatory law," and that "contracts with a binary structure that pay a fixed amount or nothing depending on the outcome of a specific future event are subject to regulation."
