Are prediction markets legal in United Kingdom?
Polymarket and Kalshi both geo-block UK residents. UK users typically use Smarkets or the Betfair Exchange, both Gambling Commission-licensed peer-to-peer betting exchanges that function similarly to prediction markets. Manifold is unrestricted.
- Regulator
- UK Gambling Commission
- Recommended platforms
- Smarkets, Betfair Exchange, Manifold
Detailed overview
The United Kingdom regulates prediction-style markets under the Gambling Act 2005, supervised by the Gambling Commission. Smarkets and Betfair Exchange — both fully licensed — offer the same core mechanic as Polymarket and Kalshi: peer-to-peer odds that move based on supply and demand. Polymarket and Kalshi have not pursued UK licensing and geo-block UK IPs.
Frequently asked questions
Can I use Polymarket in the UK?
No. Polymarket geo-blocks UK IP addresses. The Gambling Commission has not licensed Polymarket to operate in the UK.
What is the UK alternative to Polymarket?
Smarkets and the Betfair Exchange are the closest UK-licensed equivalents — both are peer-to-peer betting exchanges regulated by the UK Gambling Commission.
Are prediction-market winnings taxed in the UK?
Winnings from licensed gambling operators (including Smarkets and Betfair Exchange) are tax-free for UK residents. Crypto-denominated winnings may have separate CGT implications.
This page is editorial information, not legal advice. Regulations change frequently. Consult a qualified lawyer in your jurisdiction before trading.