Google Updates Advertising Policies With Prediction Market Guidance

Google has updated its advertising policy guidelines to include dedicated rules for prediction markets, marking the first time the internet search giant has formally addressed event-based wagering platforms in its ad policies.

In the past, the California-based company has amended and altered policies pertaining to ads run by prediction market companies, but a document released last week marks the first time Google featured dedicated prediction market guidance in its ad policies.

Citing “inherent complexities, speculative nature, and unique regulatory classification involved in trading Prediction Market contracts and related products,” Google is making clear that there are some geographic parameters regarding prediction market advertising.

Although the company doesn’t elaborate on specific geographic prohibitions, it may be reasonable to infer from the updated protocols that yes/no exchanges highlighting their sports menus cannot run those ads in Nevada – a state that bars sports event contracts.

Strict Regulatory Requirements

The tech giant is making clear that prospective prediction market advertisers must hold all necessary permits to operate event-contract platforms in the U.S.

“The advertiser is a licensed Prediction Market provider that holds all applicable local financial, commodity, and/or gaming licenses, including those required as part of Google’s certification process,” according to the policy document.

To run a domestic prediction market in the U.S., operators generally must secure a Designated Contract Market (DCM) license from the Commodity Futures Trading Commission (CFTC). Companies operating vertically integrated exchanges while holding customer funds must also hold a Futures Commission Merchant (FCM) designation through the National Futures Association (NFA).

All prediction markets must procure “certification and approval from Google to run ads about these products.”

Aligning With Broader Gambling Rules

Google isn’t “picking on” prediction markets. The internet search provider has long had specific policies pertaining to wagering companies, including sportsbook operators, and in some cases, has taken a hard line against perceived violators.

“Gambling ads must target approved countries, have a landing page that displays information about responsible gambling, and never target minors,” Google states in its broader policy framework.