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