IG Group to buy Underdog for $1.3 billion in U.S. push

IG Group agreed to acquire Underdog for total consideration of up to approximately $1.3 billion, putting one of Britain’s best-known trading platforms squarely into the fast-moving U.S. prediction markets and sports-linked wagering business. The deal, announced July 30, 2026, gives IG a bigger stake in a market where consumers are increasingly using apps to trade opinions on sports, markets and real-world events.

Breon Corcoran said the purchase was “a defining step” and that “the acquisition of Underdog establishes IG as a leader in US prediction markets.” IG said prediction markets are among the fastest-growing trading and entertainment markets, with volume to date dominated by sport, a detail that helps explain why the company sees value in Underdog’s daily fantasy sports audience and its event-contract business. IG also said the transaction would strengthen its position in the U.S. retail trading market.

The acquisition lands at a moment when the boundary between investing and gambling is becoming harder for American regulators to police. Prediction markets let users trade on future outcomes, but products tied to sports and entertainment can look and feel closer to betting than brokerage. That distinction matters because consumer protections, licensing rules and disclosure standards differ sharply depending on whether a product is treated as a financial instrument, a game or a wager.

IG said Underdog became the third-largest U.S. prediction markets venue by U.S. regulated volume after launching prediction markets in September 2025. The company described Underdog as a leading U.S. daily fantasy sports and prediction markets operator, a combination that gives IG a route into a younger, mobile-first customer base that already understands contest-style engagement and frequent app use. IG, meanwhile, says it serves over 1.3 million customers worldwide and operates in nineteen countries across five continents.

The deal also fits IG’s recent reshaping of its portfolio. On October 16, 2025, the company completed the sale of Small Exchange Inc. to Payward Inc., the parent of Kraken, for $100.0 million. On January 30, 2026, it completed the acquisition of Independent Reserve, an Australian cryptocurrency exchange, after announcing that transaction the previous September. Taken together, those moves show IG moving away from a narrower brokerage model and toward higher-growth products that sit closer to retail speculation.

For IG, the bet is that prediction markets can grow from a niche product into a mainstream U.S. retail category. For consumers and regulators, the harder question is whether those products are being sold as investing, entertainment or sports betting, and how much protection should come with each label.