What happened in this Finance story?

The UK's Financial Conduct Authority has reportedly begun sounding out prediction market companies about potentially reversing its 2019 ban on binary options for retail investors, a move that could open the UK market to platforms like Kalshi and Polymarket.

What is a key fact in this story? (1)

**FCA** has reportedly contacted prediction market companies about potentially lifting its 2019 ban on binary options for UK retail investors, according to The Times.

What is a key fact in this story? (2)

The 2019 directive barred companies from "selling, marketing or distributing binary options to retail consumers," with then-executive director of strategy and competition **Christopher Woolard** calling them "gambling products dressed up as financial instruments."

FCA Weighs Lifting UK Prediction Markets Ban — SkimNews

By Cointelegraph · Summarized & edited by Kapil Samant · 2026-09-07

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FCA has reportedly contacted prediction market companies about potentially lifting its 2019 ban on binary options for UK retail investors, according to The Times.
The 2019 directive barred companies from "selling, marketing or distributing binary options to retail consumers," with then-executive director of strategy and competition Christopher Woolard calling them "gambling products dressed up as financial instruments."
UK retail investors have been using VPNs to bypass the restrictions and execute trades on US-based platforms Kalshi and Polymarket, both named in the report.
Bernstein Research projected in April that total prediction market trading volume could reach approximately $240 billion in 2026 and $1 trillion by 2030.
If the ban is overturned, prediction market platforms could face similar challenges as in the US, where individual state gaming authorities are filing lawsuits over sporting event contracts.
New Jersey officials petitioned the Supreme Court last week to hear their case against Kalshi, a case that could clarify how federal and state authorities divide jurisdiction over prediction markets.

Why it matters: Reversing the 2019 ban would legitimize platforms like Kalshi and Polymarket for a UK retail audience that is already accessing them via VPNs, opening a market Bernstein pegged at $240 billion in 2026 trading volume. But the platforms would immediately inherit the same regulatory collision playing out in the US, where state gaming authorities are suing over sports contracts and New Jersey is pushing the Supreme Court to draw the line between federal and state oversight.