NewsPrediction Markets2 min read
IG Group to Acquire Underdog in Deal Worth Up to $1.3 Billion
The acquisition is one of the largest transactions in prediction markets to date, positioning IG Group to expand aggressively into the rapidly growing U.S. sports trading sector.
GamblingLore Editorial Desk30 July 2026
IG Group has agreed to acquire U.S. daily fantasy sports and prediction markets operator Underdog in a deal worth up to $1.3 billion, a move that significantly expands the London-based trading firm's presence in the rapidly growing U.S. prediction markets industry.
The transaction includes approximately $1.1 billion in upfront consideration, with an additional $200 million earnout available if Underdog meets agreed performance targets. The acquisition is expected to close in late 2026 or early 2027, subject to regulatory and antitrust approvals.
The deal represents a major strategic step for IG Group, which has spent recent years expanding beyond its traditional online trading business through acquisitions. The company already owns brokerage platform tastytrade and has continued investing in retail trading and digital assets. By acquiring Underdog, IG gains an established consumer brand with a rapidly growing user base and a foothold in one of the fastest-evolving areas of sports and financial markets.
Founded as a daily fantasy sports operator, Underdog has broadened its business over the past year by launching prediction markets, allowing users to trade contracts based on the outcomes of sporting events. The company has also invested heavily in building the infrastructure needed to operate these markets, positioning itself as one of the few vertically integrated operators in the space.
Under the terms of the agreement, the upfront consideration consists of approximately $963 million in equity value, funded through roughly 24.1 million newly issued IG Group shares and around $380 million in cash. IG will also assume approximately $160 million of Underdog's debt at closing.
IG Group expects the acquisition to have a limited impact on earnings during its first year before becoming meaningfully accretive as the business is integrated and synergies are realized.
The acquisition highlights the growing convergence between financial trading and sports-related event markets. As prediction markets continue to gain traction in the United States, established financial institutions are increasingly viewing the sector as a long-term growth opportunity rather than simply an extension of sports betting.
For Underdog, the transaction provides additional capital and resources to accelerate its expansion while operating under the ownership of a publicly traded global financial services company. For IG Group, it delivers immediate scale in a market that many believe is still in its early stages of development.
The transaction also reflects increasing consolidation across the prediction markets sector, as competition intensifies and larger firms look to secure infrastructure, licenses, and established customer bases rather than build them organically.
