Last week, FIFA named ADI Predictstreet as its official prediction market partner for the World Cup, but the deal is under scrutiny, as the company is largely unlicensed and has yet to launch a working product.
“The groundbreaking agreement underscores FIFA’s continued commitment to innovation and fan engagement,” said soccer’s governing body in a press release last week.
The company, however, has yet to launch a website or app. When trying to access its website, predictstreet.io, we received an “Unprocessable Entity” message. It recently obtained a license to operate in Gibraltar, but it is not officially legal in any other jurisdiction.
While many betting companies in Europe are based in Gibraltar for favorable tax reasons, they must also hold local licenses to operate. ADI Predictstreet, however, does not hold any other licenses, meaning it can only offer services to Gibraltar’s 36,000 residents.
“This partnership marks a defining moment for ADI Predictstreet and how audiences engage with major events, as we lay the foundation for a new category where collective intelligence, technology, and real-world outcomes converge,” said Ajay Hans Raj Bhatia, Principal Council Member of ADI Predictstreet.
The deal follows Polymarket securing an agreement with La Liga in Spain to become the soccer league’s official prediction market partner.
Bhatia Accused of Insider Trading
“ADI Predictstreet’s activities related to FIFA World Cup will operate in alignment with FIFA’s regulatory and integrity frameworks, incorporating a comprehensive integrity monitoring framework which includes real time monitoring of suspicious trading activity and structured information sharing and reporting systems,” said FIFA. “These safeguards will ensure transparency, fairness and the protection of participants.”
Bhatia, who is at the forefront of the company and was pictured with FIFA President Gianni Infantino in the announcement, has been accused of insider trading.
India’s Securities and Exchange Board (SEBI) claimed that Bhatia made over $900,000 in trades involving the Indian company Adani. Bhatia allegedly had several days’ notice of a $2 billion investment in Adani, enabling him to profit around $60,000, as reported by Josimar.
Bhatia agreed to pay around $170,000 to SEBI to settle the matter and accepted a six-month trading ban in India.
Other prediction market platforms have faced several accusations of allowing insider trading. The Commodity Futures Trading Commission (CFTC) has vowed to crack down on the practice in the US. But, as it is licensed only in Gibraltar, ADI Predictstreet is not bound by the regulator’s rules.
World Cup Could See Record Betting Volumes
After signing a deal with FIFA, ADI Predictstreet is expected to launch markets ahead of the World Cup. Given its license status, it is unclear where it will target users. A post on X introducing the platform said it is built to reach over 5 billion fans.
The tournament could be one of the biggest betting events in history. Caesars Sportsbook’s head of soccer, Mark Bickerdike, said he expects it to exceed the $35 billion wagered at the 2022 World Cup.
“Expectations for next summer’s World Cup are extremely high. Having an extended tournament in a U.S. customer-friendly time zone should result in this being the highest handle soccer competition the industry has ever seen,” said Bickerdike.
Prediction markets and sportsbooks will be vying for position to attract gamblers. FIFA is also looking to cash in on the tournament’s popularity by introducing dynamic ticket pricing and creating an online marketplace for ticket and NFT sales.
The organization has faced a criminal complaint in Switzerland, where it is headquartered, over allegations that elements of its ticketing system amount to illegal gambling.
It has not responded to claims that ADI Predictstreet is an unsuitable partner due to its questionable legal status.
