UK guide
Prediction Markets vs Betting
The practical differences between a prediction market and a conventional bookmaker bet.
Published 1 September 2026Reviewed 18 September 2026
Who sets the price?
A bookmaker posts odds and manages its own risk. In a prediction market, participant orders or an automated formula create the market price.
Trading before settlement
Many prediction markets let users sell a position before the event ends. A conventional bet is usually held to settlement unless a cash-out offer is available.
The UK regulatory view
The label does not decide the law. Real-money products offered to British consumers need the relevant permission, and UK prediction trading is currently concentrated in licensed betting exchanges.