FIFA’s Prediction Market Deal Faces Scrutiny As Its Partner Company Remains Shrouded in Mystery

(AsiaGameHub) –   FIFA appointed ADI Predictstreet as its official prediction market partner for the World Cup last week; however, the agreement is facing intense scrutiny because the company is mostly unlicensed and has not yet released a functional product.

“This historic agreement highlights FIFA’s ongoing dedication to innovation and engaging fans,” stated soccer’s governing body in a press release issued last week.

The firm has not yet released a website or application, however. Attempts to access predictstreet.io resulted in an “Unprocessable Entity” notification. Although it recently secured a license to operate in Gibraltar, it does not possess official legal status in any other jurisdiction.

While numerous European betting firms establish themselves in Gibraltar for tax advantages, they are required to possess local operating licenses. ADI Predictstreet, conversely, holds no additional licenses, restricting its services to Gibraltar’s population of 36,000.

“This collaboration represents a pivotal milestone for ADI Predictstreet and the way audiences interact with major events, as we establish the groundwork for a new sector merging collective intelligence, technology, and real-world results,” stated Ajay Hans Raj Bhatia, Principal Council Member of ADI Predictstreet.

This arrangement comes after Polymarket reached a deal with Spain’s La Liga to serve as the soccer league’s official prediction market partner.

Allegations of Insider Trading Against Bhatia

“ADI Predictstreet’s operations concerning the FIFA World Cup will adhere to FIFA’s regulatory and integrity standards, featuring a robust integrity monitoring system that includes real-time surveillance of suspicious trading and structured reporting mechanisms,” FIFA commented. “These measures are designed to guarantee transparency, fairness, and participant safety.”

Bhatia, who leads the company and appeared alongside FIFA President Gianni Infantino in the announcement photo, faces accusations of insider trading.

India’s Securities and Exchange Board (SEBI) alleged that Bhatia executed trades totaling over $900,000 involving the Indian firm Adani. According to Josimar, Bhatia reportedly had advance notice of a $2 billion investment in Adani, which allowed him to generate a profit of approximately $60,000.

To resolve the issue, Bhatia consented to pay SEBI roughly $170,000 and accepted a six-month prohibition on trading in India.

Various other prediction market platforms have encountered multiple accusations regarding the facilitation of insider trading. In the US, the Commodity Futures Trading Commission (CFTC) has pledged to suppress this activity. However, since ADI Predictstreet is licensed exclusively in Gibraltar, it is not subject to the regulator’s regulations.

World Cup Anticipated to Generate Record Betting Volumes

Following its agreement with FIFA, ADI Predictstreet is anticipated to roll out markets prior to the World Cup. It remains unclear where it will target users given its current licensing status. A post on X unveiling the platform stated that it was developed to reach more than 5 billion fans.

This tournament may rank among the largest betting events in history. Caesars Sportsbook’s head of soccer, Mark Bickerdike, expressed his belief that it will surpass the $35 billion wagered during the 2022 World Cup.

“Anticipation for next summer’s World Cup is immense. An extended tournament held in a time zone favorable to U.S. customers is likely to make this the highest-handling soccer competition the industry has ever witnessed,” remarked Bickerdike.

Both prediction markets and sportsbooks will compete to attract bettors. Meanwhile, FIFA aims to monetize the tournament’s popularity by implementing dynamic ticket pricing and establishing an online marketplace for ticket and NFT transactions.

The organization, headquartered in Switzerland, has encountered a criminal complaint alleging that certain aspects of its ticketing system constitute illegal gambling.

There has been no response to the allegations that ADI Predictstreet is an unfit partner due to its uncertain legal status.