UK Regulator Says Prediction Markets Would Fall Under Gambling Laws
The UK Gambling Commission stated that prediction markets would be regulated as gambling services, requiring licenses to operate in Great Britain.Summary
The UK Gambling Commission (UKGC) has clarified its stance on prediction markets, indicating they would be classified as gambling rather than financial tools if launched in Great Britain. Brad Enright, the Commission’s Director of Strategy, noted the growing popularity of these platforms in the US, where users trade contracts based on event outcomes. The UKGC asserts that any commercial product meeting the legal definition of gambling requires a license and oversight. While some operators argue their services resemble financial trading, the UKGC views them as betting intermediaries, similar to existing betting exchanges. The only exception is spread betting, regulated by the Financial Conduct Authority (FCA). The Commission warned unlicensed prediction markets to avoid British customers and highlighted the differences between the UK’s unified sports betting system and the fragmented US market, suggesting this may explain the differing levels of adoption.
(Source：Gamblingnews)