IG Group Applies for British License for IG Prediction Markets

Financial services provider IG Group has applied for a sports betting license in Great Britain from the Gambling Commission, potentially adding more competition to the UK prediction markets space, which could also soon include Kalshi and Polymarket.

While IG Group traditionally operates as a financial services company, the group announced in July the intention to expand into prediction markets with the planned acquisition of daily fantasy sports and prediction markets operator Underdog for an initial $1.1 billion, rising to a potential $1.3 billion if certain performance metrics are hit; the deal is expected to complete in late 2026 or early 2027.

The Commission’s website shows a license application from IG View Limited for a General Betting Standard – Real Event license. IG Group’s CEO Breon Corcoran is very familiar with the regulated gambling market in the UK, having served as CEO of Betfair from 2012 to 2016 and then Paddy Power Betfair from 2016 to 2018, after overseeing the merger between the two operators, which led to the formation of Flutter Entertainment.

IG Group has made the application to the Commission under the trading name ‘ig prediction markets’. Prediction market licensee pages on the Commission’s website do not currently specify prediction markets, but that particular trading name would strongly suggest IG Group’s intention is to operate a prediction markets platform in the UK.

UK market set to grow

There is a possibility competition in the UK prediction market space is about to heat up. Last week, Simon Walls, Executive Director at the Financial Conduct Authority (FCA), confirmed US prediction market operators Kalshi and Polymarket have held talks with the FCA about the prospect of launching in the UK.

Entry into the UK for both brands may not be straightforward, as the FCA prohibited selling binary options in the UK in 2019. The ban prevents companies acting in or from the UK from selling, marketing, or distributing binary options to retail consumers. In its Perimeter Report, the FCA ruled prediction markets to be binary options which would make them subject to the ban.

In January, Matchbook owner Triplebet became the UK’s first official prediction markets operator when it repackaged the sportsbook at its EasyBet brand as a prediction market.

When ADI Predictstreet launched in the UK in June, Predictstreet.matchbook.com was listed among the domain names under Triplebet’s Gambling Commission license as part of a carriage deal.

Matchbook itself operates as a peer-to-peer betting exchange. Matchbook has also strengthened by completing its acquisition of betting exchange Betdaq from Dermot Desmond for an undisclosed sum.

A different route

Kalshi and Polymarket do not appear to be taking the traditional route of applying for a license with the Gambling Commission. Prediction markets in the US can be operated under a license from the Commodity Futures Trading Commission, and operators have not sought licensing from a state’s gaming regulator.

Several states have sought to take enforcement action against both Kalshi and Polymarket. While Minnesota is the only state to have placed an outright ban on prediction markets, more than 10 states are currently in litigation with prediction market operators, including Nevada and New Jersey.

Prediction markets have rapidly become popular across the US, in part due to the simplified “Yes/No” form of bets they offer. In the prediction market format, participants trade contracts where the payoffs are tied to a future event. The odds shift based on the betting activity from players.