Interview w/ Stuart Stott CEO of Galactic

Prediction Markets and Gaming Innovation

• Galactic’s SI Predict platform launches in Q2 2025, letting fans predict lifestyle moments around sports. What inspired this focus versus more game-specific predictions?

The inspiration for Galactic’s SI Predict platform comes from a desire to engage fans in a more holistic and immersive way. The platform aims to capture the broader cultural and social aspects of sports fandom, allowing users to predict events tied to athletes’ off-field activities, fan experiences, and lifestyle trends surrounding sports. This approach recognises that modern sports engagement extends beyond the game itself, encompassing moments like celebrity appearances at events, athlete endorsements, or fan-driven cultural phenomena. By focusing on these elements, SI Predict seeks to create a unique, interactive experience that captures the wider zeitgeist of sports culture, differentiating it from traditional sports betting, which is focused on game outcomes.

• How does Galactic’s proposition differ to that of the competition?

Galactic’s SI Predict platform differs from competitors by focusing on predicting lifestyle moments adjacent to sports rather than traditional game outcomes or broader event-based predictions. While competitors like Kalshi and Polymarket offer prediction markets for a wide range of events – such as political outcomes, economic indicators, or sports game results – SI Predict emphasizes non-traditional elements tied to sports culture, such as stadium attendance, halftime show performances, or athlete-related off-field activities. This approach creates a unique, interactive experience that deepens fan engagement by tapping into the social and cultural aspects of sports fandom, setting it apart from Kalshi’s regulated, broad-market predictions and Polymarket’s cost-effective, decentralized approach to diverse event contracts. Additionally, this focus would make clear the business model is different: Kalshi and Polymarket are B2C, whereas Galactic is B2B, offering a whitelabel experience elegantly integrated with trusted media brands that already have the audience and attention, leading to faster adoption and lower customer acquisition costs to scale rapidly.

• How does Galactic’s prediction market model differ from traditional gaming leaderboards or esports betting?

Galactic’s SI Predict platform differs from traditional gaming leaderboards and esports betting by focusing on predicting lifestyle moments around sports rather than competitive game outcomes or player performance metrics. Unlike gaming leaderboards, which rank players based on in-game achievements or scores, SI Predict engages users by allowing predictions on off-field, sports-related cultural events, such as athlete endorsements, fan-driven trends, or event-specific moments like halftime show performances. In contrast to esports betting, which typically involves wagering on match results or player statistics within competitive gaming, SI Predict’s model emphasises the broader social and cultural context of sports fandom. Unlike traditional sports betting, which profits when users lose, Galactic’s revenue is based on participation – the more people trade predictions, the more revenue is generated, creating a greater incentive for true odds and a less predatory approach.

• What role do technologies like Polkadot’s Aventus Network play in ensuring Galactic’s prediction markets are secure and scalable?

Polkadot’s Aventus Network plays a critical role in ensuring Galactic’s SI Predict platform is secure and scalable by providing an enterprise-grade, layer-2 blockchain infrastructure tailored for high-performance applications. As a parachain on the Polkadot ecosystem, Aventus leverages Polkadot’s shared security model, where the main Relay Chain validates transactions across connected parachains, ensuring robust protection against attacks and maintaining data integrity for SI Predict’s prediction markets. This set-up allows Galactic to process a high volume of transactions securely, which is essential for handling fan-driven predictions on lifestyle moments around sports.

For scalability, the Truth Network, built on Aventus, enables SI Predict to handle large transaction volumes efficiently by offloading processing from the main Ethereum or Polkadot chains to its layer-2 solution, reducing costs and increasing transaction speed. Its interoperable design also allows seamless integration with other blockchains, enhancing flexibility for Galactic’s platform to expand and incorporate diverse data sources or features. This combination of security, scalability, and interoperability supports SI Predict’s ability to deliver a reliable, high-throughput prediction market for fans.

• How is Galactic tapping into the rise of esports to let fans predict outcomes like tournament MVPs or match highlights without gambling elements?

SI Predict capitalises on the esports boom by enabling fans to predict non-gambling outcomes like tournament MVPs or match highlights, prioritising engagement over wagering. Unlike traditional gambling, SI Predict focuses on cultural and social moments in esports, such as predicting which player might be named MVP based on fan sentiment or which match moment (e.g., a pivotal play) will go viral. This model harnesses the excitement of esports fandom, allowing users to earn points or rewards for accurate predictions, fostering community interaction without financial stakes. By leveraging secure, scalable technology, SI Predict delivers a seamless experience for fans to engage with these non-outcome-based elements, aligning with the growing cultural significance of esports rather than treating it as a betting opportunity.

Regulatory Landscape and Compliance

• With prediction markets facing scrutiny as potential gambling in the US, how is Galactic ensuring compliance with Europe’s gaming regulations?

Galactic takes regulatory concerns very seriously and is committed to complying with all applicable regulations in both the UK and in Europe, while firmly maintaining that prediction markets do not constitute gambling. To ensure compliance, Galactic adopts various strategies that are aligned with industry standards, such as obtaining the necessary gaming or financial licenses from relevant authorities like the UK Gambling Commission or other EU regulators. Unlike traditional platforms, Galactic doesn’t do KYC (know-your-customer) or AML (anti-money-laundering) directly; instead, it works with partners like MoonPay and Privy for user authentication and credit card deposits. Galactic offers an entirely non-custodial platform where users are in control of their funds at all times, focusing on providing as close to a web2 experience while delivering web3. Galactic has also done extensive legal work in the relevant jurisdictions to ensure its compliance and classification as a non-gambling company and adheres rigorously to data protection laws, including GDPR and the Data Act, to safeguard user privacy and data portability. By actively engaging with regulators to clarify the legal status of prediction markets, Galactic works to navigate the complex regulatory landscape while upholding its belief in the distinct nature of prediction markets.

• The EU’s Digital Fairness Act may regulate in-game currencies. How is Galactic preparing to align its prediction tokens with these rules?

Galactic is preparing to align its prediction tokens with anticipated regulatory rules by prioritizing transparency and fairness. This includes clearly displaying the real-world value of tokens, allowing flexible acquisition to avoid overspending, and providing comprehensive pre-contractual information on usage and potential risks. Currently, the in-game currency is USDC, which is the most compliant stablecoin globally. Furthermore, Galactic ensures fair and clear contractual terms and addresses consumer protection, particularly for vulnerable groups, by implementing robust age verification and avoiding design elements that could encourage excessive engagement. Its non-custodial model helps differentiate it from traditional financial services, but continuous adaptation to evolving digital fairness regulations, especially regarding digital assets and virtual economies, will be crucial for ongoing compliance.

• What steps is Galactic taking to educate European regulators about the non-gambling nature of its prediction markets, like SI Predict?

Galactic is proactively engaging with European and US regulators to demonstrate that its prediction market, SI Predict, is fundamentally different from traditional gambling. Initiatives include:

1. Emphasising a Non-Gambling Framework

SI Predict focuses on predictions related to entertainment and cultural aspects surrounding sports, such as halftime shows or celebrity sightings, rather than traditional sports betting. This reframing positions the platform as a tool for fan engagement and social prediction, distancing it from gambling.

2. Regulatory Compliance and Classification

Communicating that SI Predict is a non-custodial platform – it does not hold user funds – which reduces its resemblance to traditional gambling operations the company is aligning with oversight models from the UK Financial Conduct Authority (FCA) and the U.S. Commodity Futures Trading Commission (CFTC), suggesting a closer analogy to financial markets than to gambling.

3. Utilising Blockchain for Transparency

Galactic leverages blockchain technology to ensure fairness, transparency, and verifiability in all transactions. This technology underpins Galactic’s commitment to integrity and positions SI Predict as a forward-looking, trustworthy prediction environment.

4. Engaging in Regulatory Dialogues

Galactic is involved in ongoing consultations and roundtables with European and global regulatory bodies. Their goal is to shape and inform emerging frameworks that distinguish prediction markets from gambling, focusing on educational outreach and collaborative policy development.

Responsible Engagement and Sustainability

• How does Galactic promote responsible engagement, users predict responsibly without financial risk?

Galactic takes responsible engagement and usage of the platform very seriously, implementing stringent real-time monitoring to detect behaviours associated with gambling harm, such as bursts of deposits, extended trading hours, or rapid loss chasing. When such patterns are detected, the platform automatically shifts the user’s account to withdraw-only mode, allowing them to close positions and cash out but preventing new trades or deposits until a risk analyst conducts a manual review. In cases of heightened concern, accounts may enter a suspended state, disabling withdrawals to protect users further. This approach, supported by secure and scalable technology, ensures that SI Predict remains a safe, engaging space for fans to interact with esports as a cultural phenomenon, prioritising responsible participation over financial speculation.

Fan Engagement and Market Insights

• What do users value most in prediction markets – social interaction, bragging rights, or rewards – and how does Galactic deliver against this?

Users in prediction markets are often driven by a blend of motivations, not just one. Primarily, they value rewards (both financial and non-financial) from accurate predictions, coupled with the strong desire for bragging rights and recognition of their knowledge. Complementing these individual motivations is the desire for social interaction and community, as users enjoy discussing predictions and sharing insights, making the experience more engaging and enriching. Galactic addresses these user motivations through platform by offering diverse lifestyle moment predictions that extend beyond typical match outcomes, enabling users to display niche knowledge and spark social discussion. Leveraging its Sports Illustrated partnership also enhances credibility, attracting a larger audience for increased social interaction and opportunities for bragging rights. By prioritising fan engagement over traditional gambling, Galactic creates a more approachable and enjoyable experience focused on the intellectual challenge and social aspects.

• With esports viewership soaring, how is Galactic using prediction markets to engage fans in big tournaments?

Galactic is innovating esports (and wider sports) fan engagement through prediction markets via SI Predict where the core strategy differentiates from traditional sports betting by focusing on lifestyle moments adjacent to live sports events and socially relevant and fun propositions.

Instead of allowing bets on who will win a match, Galactic intends for users to predict outcomes related to:

• In-game occurrences: Will a rare item drop in a game? Will a specific character or strategy be picked/banned in a tournament?
• Audience and cultural elements: Will a tournament hit a certain viewership milestone? Will a celebrity (like Taylor Swift) attend a game?
• Off-field narratives: Predictions about potential roster changes, team announcements, or even cultural trends within the esports community.

This approach aims to shift fans from passive viewership to active participation, fostering community and debate as users express and validate their insights.

• How does Galactic tailor its prediction markets to different countries with different interests and cultures?

Galactic tailors its prediction markets globally by localising lifestyle moments to align with specific countries’ interests and cultures. This involves offering culturally specific predictions on relevant sports leagues, esports titles, or local cultural events, alongside language and contextual localisation to ensure cultural appropriateness. Furthermore, Galactic ensures regulatory compliance with local laws governing digital currencies and prediction markets, leveraging its flexible non-custodial model. Strategic partnerships with local media and sports entities also aid in curating relevant content and gaining regional credibility, ultimately making the prediction markets feel bespoke and engaging for diverse audiences.

• How is Galactic building fan loyalty through prediction markets?

Galactic builds fan loyalty through its prediction markets by transforming passive viewership into an active, engaging experience. By allowing fans to predict lifestyle moments around major tournaments, rather than just game outcomes, they empower users to showcase their knowledge and insights, fostering a sense of expertise and community. This encourages deeper involvement and debate among fans.

Furthermore, the association with a recognised brand like Sports Illustrated for SI Predict provides a trusted platform, which, combined with the transparent and fair resolution enabled by blockchain technology, builds confidence. This overall approach cultivates loyalty by making fans feel more invested and influential in the sporting narrative, rewarding their informed opinions and providing a compelling reason to return for future events.

Future Outlook and Challenges

• Where does Galactic see Europe’s prediction market landscape by 2030, given current economic and industry pressures?

Galactic anticipates Europe’s prediction market landscape by 2030 to be a booming, high-growth arena, an outlook strongly substantiated by the entry of new players into the market and strategic moves by established giants like Flutter Entertainment, which are actively exploring prediction markets in regions like the US, leveraging their vast experience from platforms like Betfair. Despite short-term economic headwinds, the inexorable rise of esports – projected to exceed $2 billion in Europe by then – creates a massive, engaged audience demanding interactive experiences beyond passive viewing.

The true game-changer will be the EU’s escalating regulatory framework, from the Digital Services Act to the forthcoming Digital Fairness Act. Galactic’s focus on lifestyle moments and its non-custodial blockchain model isn’t just compliance; it’s a strategic competitive differentiator. It aims to thrive by defining the gold standard for transparent, consumer-centric prediction, proving that responsible innovation, rather than regulatory evasion, is the ultimate path to market leadership in a digitally fairer Europe.

• With prediction markets forecasting trends (80% accuracy, Polymarket 2024), what’s Galactic’s boldest prediction for engagement in 2025?

Galactic’s boldest prediction for engagement in 2025 is that lifestyle moments will dramatically redefine fan interaction, making prediction markets a core, daily habit for mainstream audiences, far surpassing traditional fantasy sports in real-time, event-adjacent participation.

Galactic anticipates a paradigm shift where fans aren’t just predicting match winners, but actively engaging with a vast array of niche, culturally relevant, and socially driven propositions surrounding events. This bold prediction posits that by Q2 2025, the novelty of these “adjacent” markets (e.g., specific player stats, in-game events, celebrity appearances, or even micro-trends within a live stream) will drive unprecedented daily active users. This will be fuelled by the inherent human desire for recognition and the immediate gratification of proving one’s insights, positioning prediction markets as the ultimate interactive layer over passive media consumption.

• How does Galactic balance a European-first approach with global competition, especially in tech-driven markets like Asia and highly regulated markets like the US?

Galactic navigates global competition, particularly in tech-driven Asia and regulated US markets, by treating Europe and the US as equally significant investment landscapes. Its core strategy hinges on a universally adaptable lifestyle moments prediction model, underpinned by non-custodial blockchain technology. This approach inherently minimises direct “gambling” classifications, easing entry into diverse regulatory environments.

Success also hinges on meticulous localisation of content and strategic partnerships, like the one with Sports Illustrated, to resonate with regional interests and leverage existing fan bases. Furthermore, Galactic maintains a proactive regulatory compliance posture, ensuring its futures-style exchange model adheres to nuanced laws across jurisdictions, from Europe’s Digital Fairness Act to the US’s complex state-by-state rules, enabling confident expansion in competitive global markets.

• What’s the biggest challenge Galactic faces in scaling its prediction markets in 2025?

Galactic’s biggest challenge in scaling its prediction markets in 2025 is navigating the fragmented and constantly evolving global regulatory landscape. While its lifestyle moments approach and non-custodial blockchain model are designed to bypass traditional gambling classifications, the legal interpretations of digital assets and prediction activities are incredibly fluid across key markets like the EU (with its impending Digital Fairness Act and MiCA implementation) and the US (with its complex state-by-state laws and federal scrutiny). Successfully scaling means maintaining legal stability and adapting to diverse regulatory interpretations, as any unfavourable ruling could significantly hinder its growth trajectory.