IG Group to acquire Underdog in $1.3bn prediction markets deal

IG Group has agreed to acquire Underdog for total consideration of up to approximately $1.3bn, marking the largest strategic move in the company’s expansion into US prediction markets.

The transaction comprises an upfront enterprise value of approximately $1.1bn, to be funded through a combination of cash and newly issued IG shares, alongside an earnout of up to $200m linked to Underdog’s 2026 financial performance.

IG said the acquisition establishes the company as a leader in US prediction markets following Underdog’s rapid growth since launching prediction markets in September 2025. The operator has become the third-largest US prediction markets venue by regulated notional volume, behind Kalshi and Robinhood, while also building one of the country’s largest daily fantasy sports businesses.

Underdog will continue to operate as a standalone brand with its existing management team and platform following completion of the transaction. IG expects the acquisition to more than double its US revenues and increase its monthly active customer base in the country by more than tenfold, while creating opportunities to cross-sell trading and prediction market products.

Founded in 2020, Underdog has more than five million depositing customers and over 11 million registered accounts. The business generated approximately $466m in net revenue during the 12 months to 30 June 2026 and reported EBITDA of approximately $46m in the second quarter.

IG said prediction markets represent one of the fastest-growing segments of the trading and entertainment industries and sees opportunities to expand beyond sports into contracts covering financial markets, crypto, macroeconomic events, politics and culture.

Breon Corcoran, Chief Executive Officer of IG Group, said: “Technology is reshaping the large, high-engagement markets in which IG operates – and increasingly bringing them together. Underdog puts us at the front of that convergence with a leading daily fantasy sports franchise and a full licence stack that together give us a differentiated position in US prediction markets.”

The acquisition is expected to complete in late 2026 or early 2027, subject to regulatory approvals in the United States, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.