Regulations

Story: UK FCA Considers Lifting Ban on Retail Prediction Markets, Impacting $240B Sector

By Maheen Hernandez

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The Numbers Behind the Push. Bernstein Research put a figure on it: the prediction market industry could hit $240 billion in…

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US Legal Fights Complicate the Picture. Even if the FCA moves forward, it won't be a clean road for platforms hoping to enter the UK market.

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What Comes Next for UK Retail Access. The FCA's outreach to prediction market companies is real, but no timeline for a formal decision…

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The UK's Financial Conduct Authority is weighing whether to scrap a six-year-old ban that's kept British retail investors locked out of prediction markets — and platforms like…

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The ban dates to 2019, when the FCA barred the selling, marketing, and distribution of binary options to retail consumers.

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Despite the ban, plenty of British retail traders have been routing around it using VPNs to reach Kalshi and Polymarket, both of which run legally in the United States.

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The FCA's interest makes more sense in that context. It's not just about ideology or consumer protection framing.

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And that's kind of the core tension here. The 2019 ban made sense in its moment — binary options had a genuinely bad reputation, tied to fraud and aggressive marketing tactics.

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See also: FCA Eliminates 7-Day IPO Research Wait, Boosting UK Market Competitiveness

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Kalshi is fighting on multiple fronts. So is the broader industry.

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If the FCA lifts the ban and UK-based platforms or US operators try to set up shop in Britain, they'll probably face similar pressure from whatever UK bodies oversee gaming and…

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More context: FCA Launches Handbook API to Transform Compliance for 50,000 UK Financial Firms

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For UK retail investors who've been using VPNs to access Kalshi and Polymarket, any formal regulatory opening would be a big deal.

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Bernstein's $240 billion volume forecast sits in the background of all of this.

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