Financial trading specialist IG Group has applied for a UK gambling licence as it gears up to introduce prediction markets covering sports, politics, and entertainment. The move signals a strategic shift for the company, which has traditionally focused on financial trading and investment services. IG Group outlined its plans during a capital markets event on 22 October, targeting a phased launch beginning in late 2026 and extending into early 2027.
Phased Launch Targets Professional Clients First
The company’s initial focus will be on financial prediction markets available to eligible professional clients, with a launch planned for the fourth quarter of 2026. This first phase is shaped by UK regulatory restrictions, as certain financial prediction contracts—similar to binary options—are not permitted for retail consumers. IG Group’s broader offering, covering non-financial events such as sports results and political developments, is expected to follow in early 2027, pending regulatory approvals.
Regulatory Considerations and Uncertainties
IG Group’s expansion into event-based prediction markets brings it into a complex regulatory environment. While the Financial Conduct Authority (FCA) oversees financial contracts, the UK Gambling Commission (UKGC) regulates betting products involving sports and other events. The UKGC has clarified that some prediction markets may be classed as betting intermediaries, requiring a specific type of licence. IG Group has not disclosed which category of gambling licence it is seeking, and its application has not yet been approved. Key details such as the range of events at launch and customer eligibility requirements remain unconfirmed.
Strategic Expansion and US Ambitions
The prediction markets initiative is part of IG Group’s broader effort to diversify its platform, which now includes trading, investment, and cryptocurrency services. The company has reorganised into three divisions—IG Consumer, IG Securities, and tastytrade—to support this strategy. IG Group is also pursuing growth in the US through a proposed $1.3 billion acquisition of Underdog, a company active in daily fantasy sports and prediction markets. This transaction is expected to close in late 2026 or early 2027, subject to conditions, but is separate from the UK regulatory process.
Implications for Industry Stakeholders
IG Group’s potential entry into the UK’s regulated prediction markets could introduce a new competitor with significant financial sector experience. For operators, affiliates, and suppliers, this could mean increased competition and innovation in event-based trading and betting products. The outcome of IG Group’s licence application and its compliance with UK regulatory standards will be closely watched by industry stakeholders, as it may set precedents for other financial firms seeking to diversify into gambling-regulated products.
Key takeaways
- IG Group has applied for a UK gambling licence as part of a move into prediction markets.
- The launch will begin with financial prediction products for professional clients in late 2026.
- Expansion into sports, politics, and entertainment markets is targeted for early 2027, subject to regulatory approval.
- The company’s entry could reshape competition in the UK’s event-based betting sector.