IG Group to Acquire Underdog for up to USD 1.3 Billion
United States.- 4 August 2026 www.zonadeazar.com IG Group has agreed to acquire US fantasy sports and prediction markets operator Underdog in a transaction that could value the business at up to USD 1.3 billion.
The acquisition is intended to establish the British financial technology group as a leading participant in US prediction markets and accelerate its expansion within the world’s largest retail trading market.
News Details
The agreement places an initial valuation of USD 1.1 billion on Underdog, with a further earnout of up to USD 200 million available to its shareholders subject to agreed conditions and performance targets.
The transaction will involve a combination of cash and shares. IG Group intends to issue 24.1 million new ordinary shares, make a USD 380 million cash payment and repay approximately USD 160 million of Underdog’s existing debt.
The proposed acquisition was initially announced on 30 July 2026, only two weeks after Underdog unveiled its proprietary sports event-contract exchange.
Industry Context
Underdog began as a daily fantasy sports operator before expanding into sports betting and prediction markets.
In March 2026, the company acquired Aristotle Exchange, gaining control of entities registered with the Commodity Futures Trading Commission as a designated contract market and derivatives clearing organisation.
Underdog subsequently introduced an in-house prediction market platform integrated into its existing application. The product is intended to offer contracts covering sport, culture and other events through proprietary infrastructure rather than relying exclusively on third-party partnerships.
The acquisition comes during intense competition for US regulatory and technological assets connected with event contracts. Sports operators and financial groups are increasingly seeking direct control of exchanges, clearing systems and distribution channels within the rapidly developing category.
IG Group Strategy
IG Group believes Underdog provides a valuable combination of technology, sports-fan expertise, consumer branding and regulatory access in the United States.
The acquiring group offers trading, investment and cryptocurrency services through brands including IG, tastytrade, Freetrade, Independent Reserve and IG Prime. It serves more than 1.3 million customers worldwide and generates approximately two-thirds of its revenue outside the United Kingdom.
Adding Underdog will strengthen IG Group’s North American division and increase its exposure to products combining retail trading and entertainment.
Statements
IG Group CEO Breon Corcoran said the acquisition would establish the company as a leader in US prediction markets, which he described as one of the most significant opportunities across trading and entertainment.
Corcoran added that the transaction would accelerate IG’s development in the US retail trading market.
Underdog CEO and co-founder Jeremy Levine said the company had built its business by creating products for sports fans and demonstrated its ability to adapt as the regulatory environment changed.
Levine said combining Underdog’s proprietary exchange with IG’s resources would enable the company to make a significant expansion in predictions covering sport and other events.
Next Steps or Impact
The acquisition remains subject to the relevant corporate and regulatory processes before completion.
For Underdog, joining IG Group will provide additional capital, financial infrastructure and operational capacity to accelerate its prediction market platform. For IG, the transaction provides direct access to a substantial US audience centred on sport and digital consumer products.
The agreement also demonstrates the increasing convergence between betting, fantasy sports and financial trading companies. Its longer-term impact will depend on customer adoption and the outcome of regulatory disputes between prediction market operators and individual US states.
Edited by: @_fonta
