Betfair has begun testing a new feature focused on prediction-style markets called Betfair Predicts, marking its latest attempt to experiment with how users interact with its exchange platform. The product is currently in beta and being rolled out to a limited group of invited customers in the UK.
A shift toward simpler prediction markets
Betfair Predicts introduces a new interface layered on top of the existing exchange. Instead of the traditional back-and-lay betting format, users are asked to make a straightforward choice: Yes or No on a given outcome, followed by their stake.
The goal appears to be simplification. While the exchange has long been valued for flexibility and pricing efficiency, it can also be complex for newer users. A binary prediction model lowers that barrier, making it closer to the experience seen in emerging prediction market platforms. Importantly, the feature does not operate as a standalone product. It uses existing Exchange liquidity, meaning pricing and market depth are still driven by the same underlying system.
By restricting access to a small user base, the company can gather feedback on usability, engagement, and overall demand before committing to a wider release. Early interest in prediction-based interfaces has been growing in the UK, particularly as they offer a more intuitive entry point for casual users while still retaining elements of market-based pricing.
Regulatory context still matters
In February, the UK Gambling Commission (UKGC) issued a clear warning on the status of prediction markets, stating that such products would likely fall under gambling regulation if offered in Great Britain and could not operate outside the existing licensing framework.
It's Betfair Predicts !! pic.twitter.com/V4NngDh44I
— Brad Allen (@BradAllenNFL) April 7, 2026
Because Betfair Predicts is integrated into the exchange rather than operating independently, it is likely to be governed by the same regulatory structure already applied to Betfair’s core offering.
Prediction markets’ explosive growth in US
Prediction markets have seen explosive growth in the United States, although not without ongoing legal scrutiny. These markets are projected to grow into a $1 trillion industry in the US, according to a report from Eilers & Krejcik Gaming.
The rapid adoption of prediction markets in the US has sparked legal battles. Advocates argue that they are financial instruments regulated federally by the Commodity Futures Trading Commission (CFTC). Critics, however, counter that sports-related contracts should be treated as gambling under state law.
While the CFTC defends its jurisdiction, the Securities and Exchange Commission (SEC) has warned that some contracts may fall under its oversight. Still, analysts note that a Supreme Court ruling may ultimately be required to settle the matter.
The growth of prediction markets is expected to spread, with countries like Malta weighing in on setting out a legal framework for them. Speaking at an event in Malta, Economy Minister Silvio Schembri said the government was looking closely at the sector. Schembri cast the issue as part of Malta’s broader effort to stay ahead of emerging digital sectors.“We recognised early on that users need to feel safe if this industry was going to grow, which means it needed to uphold the highest standards of transparency and compliance,” he said, drawing a comparison with Malta’s early move into crypto regulation in 2018.
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