TLDR The UK’s Financial Conduct Authority is contacting trading platforms about lifting its 2019 ban on prediction markets. British consumers have been using VPNs to access US platforms like Kalshi and Polymarket despite the restriction. The FCA originally classified prediction markets as binary options, citing risks to retail investors. Even if the ban lifts, operators would still need separate gambling licenses to run markets on events like elections. US prediction market volume hit $51 billion last year and could reach $240 billion in 2026.
The UK’s Financial Conduct Authority has started talking to trading platforms about whether to lift its ban on prediction markets. The Times first reported the news on September 7, 2026.
The regulator has kept prediction markets off limits in Britain since 2019. That year, the FCA classified these products as binary options trades, meaning bets on whether a specific event will happen or not.
Officials at the time said retail investors faced heavy losses and often did not understand what they were buying. The ban has stayed in place for seven years.
But the market has changed since then. More British consumers are now using American platforms such as Kalshi and Polymarket to place these kinds of trades.
Many of these users rely on VPNs to get around the UK restriction. This lets them access platforms that are not designed for, or regulated in, the British market.
Industry Pressure Builds on Regulators
People in the trading industry say the ban has not worked as intended. They argue it has pushed UK consumers toward offshore platforms with no local oversight.
One City source told The Times that prohibitions like this tend to be ineffective. The source said regulators meant to protect consumers are instead pushing them toward operators with no regulatory standards at all.