Underdog Set for $1.3 Billion Acquisition by IG Group

Prediction market and daily fantasy sports operator Underdog is set to be acquired by IG Group Holdings in a deal valued at approximately $1.3 billion, marking one of the biggest acquisitions in the rapidly growing prediction market industry.

The acquisition will see the global trading company add one of the fastest-growing U.S. prediction market operators to its portfolio as it looks to expand beyond traditional financial trading. IG Group described the purchase as a key milestone in its long-term strategy to capitalize on the growing convergence of trading, investing, and consumer entertainment.

The transaction follows Underdog's rapid evolution from a daily fantasy sports platform into a major player in the prediction market space, where it now ranks among the largest operators in the United States.

IG Group Bets on the Future of Prediction Markets

According to IG Group, the acquisition aligns with its broader vision of building a global consumer engagement platform that combines financial technology with interactive trading products.

IG Group CEO Breon Corcoran said the company sees technology continuing to reshape both financial markets and consumer entertainment, making Underdog a natural fit for its long-term strategy.

"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."

Corcoran added that Underdog's product-focused approach, established daily fantasy sports business, and regulatory licenses provide IG Group with a strong position within the expanding U.S. prediction market industry.

Although the acquisition is not expected to provide an immediate boost to earnings, IG Group projects the transaction will become accretive over time. According to the company, the deal is expected to be neutral to adjusted earnings per share during its first year before contributing approximately 12% by the third year.

Underdog's Shift Into Prediction Markets

Underdog entered the prediction market sector in September 2025, expanding beyond the daily fantasy sports business that helped establish its brand among sports fans.

The company later restructured its operations to focus more heavily on prediction markets, a move that included shutting down its media division and reducing its workforce. While the transition involved difficult decisions, it also positioned Underdog to compete in one of the fastest-growing segments of online trading.

According to the report, Underdog has since grown into the third-largest U.S. prediction market platform by notional value flow, combining activity across both its daily fantasy sports products and prediction market offerings. Only Robinhood and Kalshi currently rank ahead of the company.

The acquisition reflects the growing interest in regulated event-based trading as financial firms continue investing in prediction market platforms alongside more traditional brokerage services.

Prediction Markets Continue Attracting Major Investment

Underdog's proposed sale adds to a growing list of major investments flowing into the prediction market industry over the past year.

As regulated event contracts continue expanding across politics, sports, economics, and other real-world events, established financial companies are increasingly viewing prediction markets as a long-term growth opportunity rather than a niche product.

For IG Group, the acquisition provides immediate access to an established consumer platform with an existing user base and regulatory infrastructure. For Underdog, the deal represents another milestone in its transformation from a fantasy sports operator into one of the leading names in prediction markets.

The transaction also highlights the broader evolution of the industry, where companies that once focused primarily on fantasy sports and traditional wagering are increasingly investing in event-based trading as consumer demand continues to grow.

Stay tuned to UMG Gaming for more updates on prediction markets, trading platforms, and the latest developments shaping the future of event-based trading.