IG Group Applies for UK Betting Licence Ahead of Prediction Markets Launch

IG Group has applied for a British gambling licence as part of a two-stage plan to expand into prediction markets, with a professional financial product scheduled to precede a broader consumer offering.

At its Capital Markets Event in London on October 22, the trading group said financial prediction markets would launch for UK professional clients in the fourth quarter of 2026. Its IG Consumer division expects to add politics, entertainment and sports markets in early 2027. 

The Gambling Commission’s public register lists IG View Limited with a pending application for a remote General Betting Standard licence covering real events. The entry does not show an approved licence or an effective date. 

A Bookmaking Application Rather Than an Exchange Licence

The licence category sought by IG View permits online betting on real events. It differs from the betting intermediary licence associated with betting exchanges. 

That distinction matters because the Gambling Commission addressed prediction markets in February. Director of strategy Brad Enright said existing products appeared to fall within the betting intermediary definition, while explicitly noting that the appropriate treatment depended on the operator’s business model.

The regulator’s statement therefore did not establish a single licensing route for every product marketed as a prediction market. IG’s pending application alone does not explain how its proposed offering will be structured. 

Financial event contracts face a separate regulatory boundary. In a record of an April meeting with the Treasury, the Financial Conduct Authority said it regarded financial prediction market products as binary options, which remain subject to its permanent ban on sales to retail consumers. That distinction is relevant to IG’s decision to limit its initial financial launch to professional clients. 

IG Points to Trader Interest and Offshore Traffic

In its investor presentation, IG described the planned financial offering as the UK’s first regulated financial prediction markets proposition operating 24 hours a day, five days a week, with tax-free treatment for customers.

The company cited its own survey of approximately 1,002 active UK traders and investors, in which 84% found prediction markets appealing. It also presented Similarweb estimates showing around two million UK visits to offshore prediction platforms in April 2026, up 377% over two years.

Those figures measure stated interest and website visits, rather than funded accounts or trading volumes. The availability and tax positioning remain part of IG’s proposed product proposition. 

Underdog Acquisition Supports Wider Expansion

The UK plans follow IG’s July agreement to acquire US daily fantasy sports and prediction markets operator Underdog for up to approximately $1.3 billion.

The proposed consideration comprises an upfront enterprise value of roughly $1.1 billion and a shareholder earnout of approximately $200 million. At the October 22 event, IG said completion remained on track for late 2026 or early 2027.