UK regulator considers lifting ban on prediction markets

The United Kingdom’s Financial Conduct Authority (FCA) is reportedly considering lifting a 2019 ban on prediction markets for retail investors. The watchdog has held discussions with trading platforms regarding the potential relaxation of rules that currently prohibit the sale, marketing, or distribution of binary options to consumers.

Prediction markets, which allow users to trade on the outcomes of events such as elections, politics, and sports, are a multibillion-dollar industry. While some nations like South Korea and Indonesia have moved to block these platforms, the sector continues to see significant investment. For instance, the U.S.-based platform Kalshi has reportedly entered talks for a funding round that could value the company at $40 billion.