IG Group is targeting the launch of a UK prediction markets product as early as Q4 2026.
The FTSE 100 financial trading services platform sees this as the logical next evolution of its product as prediction markets grow globally, particularly in the US.
The company’s IG Consumer arm, its retail investing unit, will lead the launch of IG’s UK prediction markets product. IG Group leadership informed investors this afternoon that it sees “strong appetite for prediction markets in the UK”.
IG Consumer Chief Executive Officer, Michael Healy, announced that IG Group will combine predictions, crypto and traditional trading into one unified, in-house platform as it looks to capitalise on the interest it has seen from UK consumers.
Healy revealed IG Group’s plans at a Capital Markets Event held today (22 October). The event came just a week after the London-headquartered firm applied for a Gambling Commission betting licence.
A move into offering B2C prediction markets in the UK, where the products are still a rarity in comparison to the US, comes after IG Group acquired US daily fantasy sports (DFS) and prediction markets platform Underdog in a $1.1bn deal in July this year.
To support its UK ambitions, the firm will set out on a targeted marketing campaign regarding consumers being able to “trade better” on the platform. The ad is set to hit UK screens on channels including Sky Sports next month.
It expects to broaden its markets to include politics, entertainment and sports by early 2027.
“Trading, investing and entertainment are converging, and IG is well placed to capitalise on the opportunity,” said Breon Corcoran, CEO of IG Group, speaking at today’s Capital Markets event.
“Today we will set out how we will deliver our next phase of growth ‐ broadening and enriching our propositions, investing in our brands and increasing efficiency.
“These priorities build on our current plan, which has driven stronger active customer growth, and underpin my confidence that we will create significant shareholder value in the coming years.”
Is IG Group shifting to US markets?
IG Group also stated that its plans to redomicile in Jersey is on track and set to complete later this year or in early 2027.
This, coupled with the Underdog acquisition, may fuel rumours of a secondary listing, which would jeopardise the firm’s position on the FTSE 100 Index.
On predictions, the company will likely call on the expertise of Jeremy Levine’s Underdog, which already offers its bespoke product to 46 US states.
Predictions in the US have come under heavy scrutiny due to its regulation under the Commodities Futures Trading Commission (CFTC) rather than by state-by-state gambling regulators.
IG Group’s intention to gain a Gambling Commission licence marks a shift from the current, CFTC-regulated Underdog product, with the firm effectively admitting it is offering gambling services.
The business will be subject to oversight by both the Gambling Commission and the Financial Conduct Authority (FCA) should its intentions come to fruition. The latter has recently stated its intentions to hold talks on the future of predictions in the UK, however.
Current US market leaders Kalshi and Polymarket have rejected the gambling label, arguing that their prediction markets are financial trading platforms offering derivatives and event contracts.
However, many European betting operators dispute that distinction, arguing that sports-based prediction markets are fundamentally no different from conventional sports betting.
This may offer up further opportunity for IG Group to evade the more stringent regulation of the Commission, should the FCA favour a prediction market-style regulatory oversight akin to the CFTC.
Corcoran acknowledged that venturing into uncharted territory involves managing regulatory uncertainty, yet he reaffirmed complete conviction in the company’s ability to navigate this.
Investors also seem confident in the firm’s switch as it commits to innovation. IG Group shares are up 22p at the time of writing (3:10pm GMT) to £9.72 since the beginning of the Capital Markets event just over an hour ago.
Article contributions from Ted Orme-Claye and Ted Menmuir
