IG Group Seeks UK Gambling License to Launch Prediction Markets

Global retail brokerage giant IG Group has taken a significant step toward expanding its product offerings by applying for a UK gambling license. The application, filed through its London subsidiary IG View Limited under the trading name "ig prediction markets," is currently pending with the UK Gambling Commission.

The proposed offering will allow clients to trade prediction markets covering non-financial events, including politics, entertainment, and sports. This initiative represents a strategic shift for a traditional financial broker, tapping into the surging popularity of speculative event contracts.

The rollout is planned as a two-stage process. First, IG intends to launch contracts on financial outcomes tailored specifically for UK professional clients in the final quarter of the year. Following that, the broader prediction markets for general events are expected to go live in early 2027, pending regulatory approval.

The regulatory distinction in the UK market dictates this phased approach. While the Financial Conduct Authority severely restricts or bans binary options on financial outcomes for retail clients, betting and prediction products on real-world events fall under the jurisdiction of the Gambling Commission.

For retail traders and industry observers, this development demonstrates how established financial firms are seeking new avenues for growth outside strict retail derivatives regulations. By bridging financial trading and prediction markets, IG aims to capture diverse trader interest across multiple asset and event classes.

As the application remains under review, market participants will be watching closely to see how the UK Gambling Commission handles the entry of a major financial institution into the betting sector. Successful approval could pave the way for other retail brokers to follow a similar dual-regulated path.