UK Regulator Says Prediction Markets Would Fall Under Gambling Laws

The UK Gambling Commission (UKGC) has explained how it would handle prediction market platforms if they launched in Great Britain. The regulator suggested these products would be treated as gambling services instead of financial tools.

UKGC Signals Prediction Markets Would Require Gambling Licences

In a new statement, the Commission’s Director of Strategy, Brad Enright, talked about the growing buzz around prediction markets, which have taken off in the United States. These platforms let users buy and sell contracts tied to the results of events from sports and elections to economic markers.

The regulator says any commercial product that meets the legal gambling definition under British law needs a license and UKGC oversight. Some prediction market operators abroad claim their services are like financial trading, but Enright hinted that current models would be seen as betting intermediaries in Great Britain. This grouping matches betting exchanges, which have run in the UK for over 20 years.

The Commission points out just one clear exception: spread betting, which the Financial Conduct Authority (FCA) regulates instead of gambling laws. Beyond this specific area, platforms that offer event-based contracts would need to have the right gambling license.

UK-licensed operators must meet tough rules to protect customers, ensure fairness, maintain betting market integrity, and stop crime. The Commission keeps a close eye on compliance and takes action when rules are broken.

UKGC Warns Unlicensed Prediction Markets to Avoid British Customers

The UKGC also cautioned prediction market companies running without UK licenses. Companies without authorization should make sure they do not market to or accept customers from Great Britain, as this could be illegal. In some cases, unlicensed operations might also affect any existing gambling permissions a company has.

While not commenting on ongoing legal battles in the United States — where prediction markets face regulatory clashes between state authorities and federal watchdogs — the Commission pointed out key differences between the two markets. Sports betting in Great Britain has a long history and operates under a single national system.

In contrast, the US betting scene has grown in recent years and remains split, with rules changing from state to state. This, the regulator hinted, might explain why prediction markets have caught on in the US but might not be as appealing in the UK.