IG Group seeks UK gambling licence ahead of sports prediction market launch

IG Group has applied for a UK gambling licence as it prepares to broaden its event-market offering beyond financial outcomes to include sports, politics and entertainment. The move marks a planned expansion of the company's existing trading and investment services, with separate launch phases scheduled for late 2026 and early 2027.

The company outlined its plans during a capital markets event on 22 October 2026. Financial prediction markets are scheduled to launch in the fourth quarter of 2026 for UK professional clients, while the broader event-market proposition is targeted for early 2027. The licence application remains distinct from regulatory approval and IG Group has not announced a confirmed launch date for retail customers.

What IG Group has announced

The proposed expansion forms part of IG Group's strategy to bring trading, investing and cryptocurrency services together within a more unified platform. The proposition is already live in the UK for existing financial products, with further development planned across the company's Consumer division.

The initial phase will focus on financial prediction markets for professional clients. These contracts relate to financial outcomes and operate within a different regulatory framework from markets based on sporting results or political developments.

The second phase is expected to extend the available markets to cover a wider range of real-world events. IG Group has identified politics, entertainment and sport as prospective categories, although the precise product specifications and consumer launch arrangements have not been fully detailed.

The company has not confirmed that its gambling licence application has been approved. It has also not publicly identified the exact licence category requested, leaving important details of the intended UK operating structure unresolved.

How the UK regulatory framework applies

The distinction between financial event contracts and markets based on non-financial outcomes is central to the proposed expansion. The Financial Conduct Authority (FCA) addressed prediction market products in its 2026 perimeter report, explaining that its regulatory remit covers relevant contracts linked to financial outcomes.

The FCA's stated position is that the financial prediction products it has reviewed resemble binary options. The regulator maintains a permanent ban on the sale of binary options to retail consumers because of the risks associated with these speculative products. IG Group's stated plan to begin with UK professional clients is therefore an important distinction, although the regulatory treatment of any specific product depends on its characteristics and applicable requirements.

Contracts based on sporting or political outcomes fall within the remit of the Gambling Commission, according to the FCA's explanation of the regulatory boundary. As a result, expanding from financial markets into sports and other non-financial events can introduce an additional set of licensing and compliance considerations.

In February 2026, the Gambling Commission outlined its approach to prediction markets. It indicated that existing business models would appear to fall within the definition of a betting intermediary under UK legislation, depending on the service's precise structure.

A betting intermediary licence can be relevant to an online exchange that facilitates betting between participants rather than taking direct liability for every wager. However, the appropriate classification depends on the actual product and operating model. IG Group has not confirmed the exact licence category it has applied for.

A broader platform and customer strategy

The planned launch also reflects IG Group's wider efforts to develop a more integrated consumer proposition. By combining trading, investing and cryptocurrency services, the company is seeking to provide customers with access to several financial activities through a connected platform.

Its organisational structure has been refreshed around three divisions: IG Consumer, IG Securities and tastytrade. The model is intended to support the company's different customer groups and product offerings while giving management a clearer framework for delivering its growth strategy.

During the October capital markets event, IG Group reported that UK active-customer numbers and net revenue had grown at around twice the rate of the rest of IG Consumer over the preceding 21 months. The company attributed this performance to customer-led growth supported by a broader range of products.

That performance provides context for the planned expansion but does not guarantee similar results from prediction markets. Their contribution will depend on customer demand, the regulatory pathway and how effectively the new products fit within the existing platform.

The company will also need to address the practical requirements associated with launching a new product category. These include defining the customer eligibility rules, communicating product risks and ensuring that the relevant controls are in place before services become available.

How the Underdog acquisition fits into the plans

IG Group's UK ambitions are developing alongside its proposed acquisition of Underdog, a US operator active in daily fantasy sports and prediction markets.

Announced on 30 July 2026, the transaction carries total consideration of up to approximately $1.3 billion. IG Group has said the acquisition remains subject to the relevant completion conditions and is expected to close in late 2026 or early 2027.

The proposed deal could broaden the group's exposure to event-based products and provide a larger international platform for its activities. Nevertheless, the transaction and the UK licensing process should be treated as separate developments.

IG Group has not presented the UK gambling licence application as dependent on completing the Underdog acquisition. The UK offering will still need to satisfy the regulatory requirements applicable to its intended products, regardless of the transaction's outcome.

The timing of the two initiatives places additional attention on execution. Completing an acquisition, integrating a business and preparing a separately regulated product offering involve different commercial and operational considerations.

What remains unclear before launch

Several material details have yet to be confirmed. These include the exact gambling licence category sought, the status and outcome of the application, the initial range of non-financial event contracts and the timetable for making those products available to UK customers.

The distinction between professional and retail customers will also remain important as the proposition develops. The announced fourth-quarter 2026 phase concerns financial prediction markets for professional clients. It should not be interpreted as confirmation that a retail-facing sports prediction service will launch during the same period.

Regulatory classification is likely to influence how products are designed, marketed and made available. Any changes to the proposed offering may depend on the specific contracts involved and the requirements imposed by the relevant authorities.

For customers and investors, the next meaningful milestones will be further details from IG Group, progress on the licence application and confirmation of the commercial launch arrangements. Until those details are available, the proposed dates should be understood as company targets rather than guaranteed launch commitments.

Conclusion

IG Group's gambling licence application represents a significant development in its plans to expand beyond conventional trading and investment products. Its proposed approach separates financial prediction markets for professional clients from a later expansion into sports, politics and entertainment, reflecting the different regulatory considerations attached to these activities.

The company's unified platform strategy and proposed acquisition of Underdog provide important commercial context, while its recent UK customer and revenue growth offers a measure of the performance it will seek to build upon. However, those advantages do not remove the operational and regulatory challenges involved in introducing a new category of event-based products.

The decisive next step will be the progress of the licensing process and the publication of clearer information about the products IG Group intends to offer. Until approval and launch details are confirmed, the planned timetable remains provisional. The development is therefore best viewed as an important stage in the company's wider strategy rather than evidence that a fully authorised UK sports prediction market is already ready for customers.

FAQs

What has IG Group applied for?
IG Group has applied for a UK gambling licence as it prepares to expand into event markets covering non-financial outcomes, including sports, politics and entertainment.

When are IG Group's financial prediction markets expected to launch?
The company has scheduled its initial financial prediction market offering for the fourth quarter of 2026, initially targeting UK professional clients.

When could sports prediction markets become available in the UK?
IG Group has identified early 2027 as its target for broadening the offering to include sports and other non-financial events. This remains a planned timetable rather than a confirmed launch date.

Has IG Group received its UK gambling licence?
The company has disclosed that it applied for a licence. No approval has been confirmed in the announcement covered by this article.

Why does the FCA have a role in prediction markets?
The FCA oversees relevant financial products and has stated that financial prediction market products it has reviewed resemble binary options. Its regulatory position includes a permanent prohibition on selling binary options to retail consumers.

Which prediction markets fall under the Gambling Commission?
Markets based on non-financial outcomes, including sports and political events, fall within the Gambling Commission's remit according to the FCA's explanation of the UK regulatory boundary.

What is a betting intermediary licence?
A betting intermediary licence can cover services that facilitate betting between participants. The required licence depends on the service's structure and the applicable UK legal requirements.

How does the new proposition fit IG Group's business strategy?
It supports the company's objective of bringing trading, investing and cryptocurrency services together while exploring additional event-based products for eligible customers.

What is the proposed Underdog acquisition worth?
IG Group announced a transaction with total consideration of up to approximately $1.3 billion on 30 July 2026. Completion remains subject to the applicable conditions.

Does the UK licence application depend on the Underdog acquisition?
IG Group has not stated that the UK application depends on completing the transaction. The acquisition and the UK licensing process remain separate developments.