IG Group applies for a UK gambling licence ahead of sports prediction market launch

IG Group has applied for a UK gambling licence as it prepares to move its event-market offering beyond financial outcomes and into sports, politics and entertainment. For high-risk payment providers, the point is not the headline product category; it is the regulatory split between financial contracts and non-financial event markets, which determines who supervises the flow.

1. IG Group outlined the plan at a capital markets event on 22 October 2026. The company said financial prediction markets are scheduled to launch in the fourth quarter of 2026 for UK professional clients, with the broader event-market proposition targeted for early 2027.
2. The expansion would extend IG Group’s existing trading and investment services, with the company also framing it as part of a broader push to bring trading, investing and cryptocurrency services into a more unified platform. The proposition is already live in the UK for existing financial products, with further development planned across the Consumer division.
3. The launch is being split into two phases. The first phase covers financial prediction markets linked to financial outcomes; the second phase would add markets based on sports, politics and entertainment, which the company has identified as prospective categories.
4. IG Group has applied for a UK gambling licence, but the application is still separate from regulatory approval. The company has not announced a confirmed launch date for retail customers, and it has not publicly identified the exact licence category requested, leaving the intended UK operating structure unresolved.
5. The regulatory boundary matters here. The Financial Conduct Authority (FCA) addressed prediction market products in its 2026 perimeter report and said its remit covers relevant contracts linked to financial outcomes. The FCA also said the financial prediction products it reviewed resemble binary options, which remain permanently banned for retail consumers in the UK.

On paper, the distinction looks neat: financial event contracts sit in one lane, while sports and political outcomes sit in the Gambling Commission’s lane. In practice, that means different permissions, different supervisory expectations, and a very different compliance setup for any PSP or acquirer thinking about exposure to the launch.