IG Group has announced its intention to acquire daily fantasy sports (DFS) and prediction operator Underdog. This transaction, which could reach a value of up to $1.3 billion, is set to enhance IG Group’s foothold in the US market, with the acquisition expected to finalize by late 2026 or early 2027. The acquisition aims to capitalize on the expanding US prediction market sector, positioning IG Group as a prominent figure within the industry, which is particularly significant given the growth trajectory of the retail trading market in the region.
The acquisition of Underdog is a notable step for IG Group, as it seeks to diversify its portfolio beyond its established retail stock and cryptocurrency trading operations. Led by CEO Breon Corcoran, a former executive at Paddy Power Betfair, the company is leveraging Corcoran’s experience in the gambling sector to strengthen its position in the prediction market space. This acquisition is valued at approximately $1.1 billion, based on Underdog’s recent revenue performance, and includes a potential earnout of up to $200 million, contingent upon meeting specific financial targets by the end of 2026.
Underdog, which ventured into the prediction markets in September 2025 through a partnership with Crypto.com Derivatives, has rapidly expanded its operations across 16 states as of the announcement date. CEO Jeremy Levine has emphasized the company’s focus on sports prediction markets, leveraging its expertise in the sports arena to capture market share. Notably, Levine has prior connections with Corcoran, having sold his previous DFS venture DRAFT to Paddy Power Betfair in 2017, during Corcoran’s tenure.
The acquisition is anticipated to significantly boost IG Group’s US operations, potentially doubling its US revenues and expanding its active customer base by more than tenfold. Underdog has achieved substantial growth with its prediction market products, having reached 54% of the handle in the first half of 2026 and emerging as the third-largest US prediction-market venue. The integration of Underdog will enable IG Group to tap into a larger and engaged customer base, offering a cost-efficient acquisition channel.
Despite the promising growth potential, the acquisition does present certain challenges, particularly in terms of regulatory compliance and competition from other established operators in the US market. The integration of Underdog into IG Group’s broader operations will require careful navigation of regulatory frameworks and market dynamics, ensuring compliance across multiple jurisdictions.
Looking forward, IG Group has hinted at plans to expand the scope of its prediction market offerings. Beyond sports betting, the company is exploring opportunities in areas such as cryptocurrency, financial markets, and macroeconomic predictions. This strategic expansion is expected to open new avenues for growth, with potential synergies arising from shared infrastructure and capabilities with Tastytrade, another entity within IG Group’s portfolio.
As IG Group finalizes this acquisition, the focus will be on the seamless integration of Underdog into its operations. This includes capitalizing on shared resources and capabilities, enhancing product offerings, and optimizing regulatory licensing. The completion of this deal is expected to reshape the company’s revenue composition, with the US market accounting for a significant portion of its overall earnings.
The coming months will be crucial as IG Group navigates the complexities of the acquisition process and prepares for the integration of Underdog. Industry observers will be watching closely to see how the company manages the challenges and opportunities presented by this ambitious expansion into the US prediction markets.
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