IG Group Applies For UK Gambling Licence Ahead Of Sports Prediction Markets Launch

IG Group has applied for a UK gambling licence as the financial trading company prepares to expand into prediction markets covering sporting events, politics and entertainment.

The application forms part of a broader strategy to diversify its product offering beyond traditional financial trading and investment services, with the company targeting a phased introduction of prediction markets between late 2026 and early 2027.

During a capital markets event on 22 October, IG Group confirmed plans to introduce financial prediction markets for professional clients in the fourth quarter of 2026, followed by a wider offering covering non-financial events early next year.

However, the company has not confirmed whether its gambling licence application has been approved, and no definitive launch date has been announced for UK retail customers.

IG Group Targets Sports And Entertainment Prediction Markets

IG Group's expansion will initially focus on financial prediction markets, allowing eligible professional clients to take positions on the outcomes of financial events.

The company subsequently intends to introduce markets linked to sporting results, political developments and entertainment events, broadening its offering beyond products traditionally associated with financial trading.

The distinction between the two phases is particularly important because financial prediction contracts and event-based betting products fall under different regulatory frameworks in the UK.

While certain financial contracts are overseen by the Financial Conduct Authority (FCA), products involving sports and other non-financial outcomes can fall within the jurisdiction of the UK Gambling Commission (UKGC).

In February 2026, the UKGC outlined its position on prediction markets, indicating that existing business models could fall within the definition of a betting intermediary under British gambling legislation.

Such licences are typically relevant to platforms facilitating betting between customers rather than directly accepting liability for individual wagers.

IG Group has not disclosed which gambling licence category it has applied for, meaning the precise regulatory structure of its proposed service remains unclear.

FCA Restrictions Shape Initial Launch Plans

The company's decision to initially target professional clients reflects the regulatory restrictions surrounding financial prediction products in the UK.

In its 2026 regulatory perimeter report, the FCA indicated that certain financial prediction contracts resemble binary options, which have been permanently prohibited for retail consumers because of the risks associated with speculative trading.

Professional clients are subject to different regulatory requirements, although the classification and availability of individual products depend on their specific characteristics.

IG Group's planned fourth-quarter launch therefore relates specifically to financial prediction markets for professional clients, rather than a wider consumer-facing sports betting platform.

Any subsequent expansion into non-financial event markets will depend on the company's ability to satisfy the relevant gambling licensing and compliance requirements.

Underdog Acquisition Supports Wider Expansion

The proposed prediction markets launch forms part of IG Group's efforts to develop a more integrated platform combining trading, investment and cryptocurrency services.

The company has reorganised its operations into three divisions — IG Consumer, IG Securities and tastytrade — as it seeks to improve its product offering and support international growth.

During its October capital markets presentation, IG Group reported that UK active customer numbers and net revenue had grown at approximately twice the rate recorded across the remainder of its Consumer division over the previous 21 months.

The business is also pursuing a major expansion in the United States through its proposed acquisition of Underdog, a company operating in daily fantasy sports and prediction markets.

Announced in July 2026, the transaction carries a potential total consideration of approximately $1.3 billion and is expected to complete in late 2026 or early 2027, subject to the relevant conditions.

The acquisition would provide IG Group with additional exposure to the growing event-based trading sector, although its UK gambling licence application remains a separate regulatory process.

UK Regulatory Approval Remains Outstanding

Several important aspects of IG Group's proposed UK prediction markets offering have yet to be confirmed, including the precise licence category requested, the range of events available at launch and the eligibility requirements for customers.

The company will also need to establish appropriate compliance procedures, customer protections and risk disclosures before making any gambling-regulated products available.

The proposed timetable remains provisional, with the fourth-quarter 2026 launch focused on financial prediction markets for professional clients and the wider sports, politics and entertainment offering targeted for early 2027.

IG Group's entry into the sector would represent a notable expansion of its business beyond conventional financial services, potentially introducing a new competitor to the UK's regulated event-based betting market.

However, the company's ability to proceed will depend on the outcome of its gambling licence application and the regulatory requirements attached to its proposed products.