Flutter-owned betting exchange operator Betfair has soft-launched a new interface for its Betfair Exchange product, which utilises a familiar prediction markets-style experience.
Called Betfair Predicts, the product is currently being BETA tested among a small select group of customers. Fueled by existing Exchange liquidity, it offers users the option to predict the result of events, from politics to sports, with the caveat that instead of putting down a bet, they stake on a Yes/No outcome.
The company believes there is significant demand for such products in the UK, based on customer feedback. Regardless, Betfair chose not to definitively predict how the product will evolve, as it is “far too early” to offer any conclusive statements.
For SBC News, a Betfair spokesperson added: “We’re constantly testing new innovations and Betfair Predicts is an example of this work. This is a BETA product that will evolve based on customer feedback.”
Of note, Betfair provided another Flutter brand, the US-facing FanDuel, with technical expertise for the launch of FanDuel Predicts last year.
However, despite sharing a similar foundation, Betfair has distanced itself from drawing any parallels between the UK Betfair Predicts and the US FanDuel Predicts platforms, due to how immensely different prediction markets are regulated in both countries.
In the US, prediction markets do not currently fall under gambling regulations, but are rather seen as a financial instrument. Therefore, they are governed by the Commodity Futures Trading Commission (CFTC).
With Kalshi and Polymarket being the two biggest prediction market platforms in the US, the vertical has also attracted the attention of more traditional players in the gambling space, such as FanDuel and DraftKings, among others.
However, prediction markets have so far managed to only get a breakthrough in the US, with regulators in other parts of the world largely labelling them as gambling platforms, therefore requiring them to obtain the relevant licences to enter their jurisdictions.
This especially rings through in Europe, where countries like France, Belgium, Romania, Germany and more have outright banned them completely – despite a recent licence granting in Gibraltar signalling that they might eventually break through the current barriers.
In the UK, the Gambling Commission has adopted a more hospitable approach, maintaining that prediction markets are welcome as long as they acquire a gambling licence.
While similar peer-to-peer offers have been operating in the UK for quite some time now, with Betfair Exchange being an avid example, the fact that they are all licensed by the UKGC makes it clear that there are no second thoughts about how they are perceived in the market.
