Are prediction markets legal in the UK?

Sami Kurvinen

Published on: 25 June 2026

3 minutes

There is a lot of talk about prediction markets lately, but what exactly are they, and are they legal in the UK?

Do prediction markets need a UK license to legally operate in the UK?

We have done the research and will explain it all to you on this page.

What are prediction markets?

A prediction market is a marketplace where people trade contracts tied to future events. The trades (bets) can be about anything, from sporting events and political elections to whether it will rain tomorrow and everything in between.

Instead of relying on set odds set by the “house” as on traditional gambling sites, prediction markets are peer-to-peer, allowing traders to enter and exit positions at any time.

In prediction markets, you buy shares of the results you think will happen or not happen.

Are prediction markets allowed in the UK?

Yes, prediction markets are legal in the UK, but the platforms must hold a valid operating license from the United Kingdom Gambling Commission (UKGC).

The reason for this is that prediction markets in the UK are not treated as financial investments but are strictly classified and regulated as gambling products.

Which prediction markets hold a valid UKGC license?

Several major companies are looking at adding prediction market-based products to their portfolios. For example, Betfair is experimenting with a new product they call “Betfair Predicts”.

Other platforms and operators offering prediction market-based products holding a valid UKGC license include:

• Versus App: Fiat-native prediction platform.
• Matchbook: Betting exchange that operates prediction-style event contracts.
• Easybet: Offers simplified prediction market products.

What’s the difference between prediction markets and gambling sites?

In prediction markets, people buy and sell (trade) contracts tied to future events directly with each other.

On gambling sites, people place bets against odds set by the bookmaker.

It’s also said that prediction markets are designed to aggregate information, while gambling sites are designed primarily for entertainment.

Risks with prediction markets

Being active on prediction markets and trading contracts comes with a certain amount of risks, including these most common ones:

• You can lose money.
• Some markets can have low liquidity, making it hard to buy and sell at fair prices.
• Some markets can be manipulated.
• Some traders have more and better information than you.

Why is there so much buzz about prediction markets?

One of the main reasons prediction markets have become such a big deal in mainstream media and elsewhere is their growing popularity, mainly in the USA.

Prediction markets are also becoming more reliable than traditional polls in elections, as they reflect reality better when people have money on the line.

Easy accessibility is another reason.

Can you play casino games on prediction markets?

Traditional prediction markets typically do not offer standard casino games in which you play against the house. However, some platforms may blur the line by offering markets on highly random events or by operating in ways that resemble gambling.