IG Group has taken a significant step into the prediction markets by agreeing to acquire Underdog, a daily fantasy sports and predictions company, in a deal valued at up to $1.3 billion.
Breon Corcoran, who is the former CEO of Paddy Power/Flutter, now leads IG Group, a trading platform listed on the FTSE 100 that encompasses various brands. Since assuming the role of CEO in December 2023, Corcoran has drawn from his extensive experience in the industry, which includes a notable tenure as CEO of Paddy Power Betfair from 2016 to 2018 and prior work at Betfair. Following his departure from PPB, he shifted his focus to finance and investment before returning to the sector.
In a Thursday evening statement, Corcoran emphasized that the acquisition of Underdog would solidify IG Group's position as a leader in the U.S. prediction markets and spur growth in a rapidly expanding retail trading landscape. The deal values Underdog at $1.1 billion, which is 2.4 times its 12-month revenue reaching $466 million as of June 2026, reflecting a 21% year-over-year increase. Additionally, Underdog's shareholders could earn up to $200 million, contingent on net gaming revenue benchmarks and achieving a positive EBITDA in 2026.
To facilitate this acquisition, IG Group has secured a bridge facility of up to $950 million from Barclays Bank PLC and Goldman Sachs. The transaction is projected to conclude in late 2026 or early 2027.
Underdog made its entry into prediction markets in September 2025 through a collaboration with Crypto.com Derivatives, with CEO Jeremy Levine claiming that sports would be the future focus of prediction markets. Levine, who previously founded the DFS app DRAFT—sold to PPB under Corcoran's leadership—has ties to Corcoran, who was also an early investor in Underdog.
Once finalized, this acquisition is expected to significantly expand IG's U.S. market presence, potentially more than doubling its U.S. revenue and increasing the number of active U.S. customers by over tenfold. Underdog, recognized as the second-largest DFS operator by revenue behind PrizePicks, has grown to 54% of handle in the first half of 2026, with quarterly EBITDA reaching $46 million in Q2 of that year. The firm also claims five million depositing customers and over 11 million registered accounts.
As for future developments, while initially targeting sports betting contracts, IG Group has hinted at broader aspirations, including products associated with cryptocurrency, finance, and political or cultural events, which could tap into a larger market potential. This diversification aims to lessen IG's dependence on any single revenue stream. Underdog is set to maintain its brand identity post-acquisition, with Levine reporting directly to Corcoran. The merger is poised to yield substantial efficiencies and synergies across operations, ranging from customer relationships to shared regulatory licenses.
