Flutter’s Betfair launches test for prediction markets interface

(AsiaGameHub) –   Betting exchange operator Betfair, which is owned by Flutter, has rolled out a new interface for its Betfair Exchange product via a soft launch, featuring a user experience aligned with the familiar prediction markets format.

Named Betfair Predicts, the offering is currently undergoing BETA testing with a small, curated group of customers. Backed by the existing liquidity of the Exchange, it gives users the option to forecast outcomes of events ranging from politics to sports, with the key note that rather than placing a traditional bet, users stake funds on a binary Yes/No result.

Based on feedback from its users, the company believes there is strong demand for products of this kind in the UK. Even so, Betfair has opted not to make firm projections about how the product will develop, as it is “far too early” to share any conclusive statements.

Speaking to SBC News, a Betfair spokesperson added: “We are constantly trialing new innovations, and Betfair Predicts is one example of this ongoing work. This is a BETA product that will evolve in line with customer feedback.”

It is worth noting that Betfair provided technical expertise to another Flutter brand, the US-focused FanDuel, for the launch of FanDuel Predicts last year. 

However, even though the two offerings share a similar core foundation, Betfair has avoided drawing parallels between the UK Betfair Predicts and the US FanDuel Predicts platforms, given the drastic differences in how prediction markets are regulated across the two countries.

In the US, prediction markets do not currently fall under gambling regulations, and are instead classified as financial instruments. For this reason, they are overseen by the Commodity Futures Trading Commission (CFTC).

Kalshi and Polymarket are the two largest prediction market platforms operating in the US, and the sector has also caught the attention of more traditional players in the gambling space, including FanDuel, DraftKings, and a number of other operators.

To date, though, prediction markets have only achieved a major breakthrough in the US, as regulators in most other parts of the world largely categorize them as gambling platforms, meaning they are required to secure relevant operating licenses to enter those jurisdictions.

This is particularly evident in Europe, where countries including France, Belgium, Romania, Germany and others have imposed full outright bans on the products – despite a recent license approval in Gibraltar suggesting that they may eventually overcome the current regulatory barriers.

In the UK, the Gambling Commission has taken a more accommodating approach, stating that prediction markets are permitted to operate as long as they obtain a valid gambling license.

While similar peer-to-peer offerings have been active in the UK for a considerable period of time, with Betfair Exchange being a leading example, the fact that all these services are licensed by the UKGC removes any ambiguity over how they are classified in the market.