UK regulator weighs easing financial prediction market ban: Times
The UK's Financial Conduct Authority is considering easing its ban on retail prediction markets due to the rising popularity of overseas platforms like Polymarket and Kalshi. While the regulator remains concerned about consumer protection, industry pressure is mounting to modernize rules for speculative financial products.
Why it matters
This reflects a broader global tension between financial regulators and the rapid growth of decentralized or offshore speculative betting platforms.
Prediction markets let users take yes-or-no positions on the outcome of future events across various categories, including economics, sports, and weather. The FCA treats contracts linked to financial and certain weather events as binary options, whose sale to retail investors has been prohibited since 2019 .
The regulator has weighed lifting the restriction as U.K. consumers increasingly access overseas platforms including market leaders Kalshi and Polymarket.
The FCA’s public position continues to support that restriction. Its latest perimeter report said the ban remained appropriate because of the speculative nature of the contracts and the risk of consumer harm, while leaving open the possibility of further work on access or clarification of the regulatory boundary.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in