IG Group has made a significant move into the prediction markets arena with an agreement to acquire Underdog, a daily fantasy sports (DFS) and predictions operator. The deal could be valued at up to $1.3 billion.
Under the leadership of Breon Corcoran, a former CEO at Paddy Power/Flutter, IG Group operates as a major player in retail stock and cryptocurrency trading. Corcoran took over as CEO in December 2023 and has a rich history in the industry, having spent two impactful years as CEO of Paddy Power Betfair (PPB) and over three years at Betfair prior to that.
After leaving his position at PPB following Peter Jackson's takeover in 2018, Corcoran shifted his focus to finance and investments. In a statement released Thursday evening, he expressed that the acquisition of Underdog would position IG Group as "a leader in US prediction markets" and would also expedite growth in the global retail trading sector, identified as the "world's largest and fastest-growing market."
The acquisition values Underdog at $1.1 billion, translating to 2.4 times its revenue of $466 million for the 12 months ending June 2026, reflecting a 21% year-over-year growth. Additionally, an earnout of up to $200 million is allocated for Underdog's shareholders, contingent on achieving specific targets related to net gaming revenue and positive EBITDA by 2026.
To finance this acquisition, IG Group has secured a bridge facility worth up to $950 million, with assistance from Barclays Bank PLC and Goldman Sachs. The transaction is anticipated to wrap up in late 2026 or early 2027.
Underdog entered the prediction markets landscape in September 2025 through a collaboration with Crypto.com Derivatives, announcing plans to launch sports prediction markets in 16 states, as stated by CEO Jeremy Levine. Levine has past connections with Corcoran, having founded the DFS app DRAFT, which was sold to PPB for $19 million, with potential additional earnings of up to $29 million. IG Group's press release noted that Corcoran had been an early-stage investor in Underdog.
The acquisition is set to significantly enhance IG's presence in the US, potentially more than doubling its revenues from this market and increasing US monthly active customers tenfold. The acquisition statement highlighted that combining the two entities' revenues would lead to approximately 40% of group revenue derived from the US, with prediction markets and DFS accounting for an estimated 25% of the overall net trading revenue.
Underdog has made strides since launching its prediction segment, expanding its operations across 30 states and migrating to Kalshi, which has become the third-largest venue for US prediction markets based on regulated notional volume.
In the first half of 2026, IG Group reported that Underdog's product had achieved a 54% handle, with a quarterly group EBITDA reaching $46 million in Q2. Currently, Underdog ranks as the second-largest DFS operator by revenue, trailing only behind PrizePicks, with a user base comprising five million depositing customers and more than 11 million registered accounts. It aims to fuel future growth with the launch of a proprietary exchange to optimize its economic model across the value chain.
Looking ahead, while initially focusing on sports betting contracts, IG Group has hinted at broader aspirations, considering contracts related to crypto, financial events, and socio-political outcomes—all of which could significantly expand its market reach. The same exchange infrastructure may also position Underdog favorably in the emerging onshore market for perpetual futures and foster synergies with Tastytrade—setting the stage for sustained growth once the acquisition finalizes.
Post-acquisition, Underdog is expected to maintain its position as an independent brand, with Levine reporting to Corcoran. The merger is anticipated to create efficiencies through shared resources and robust marketing strategies, alongside beneficial regulatory synergies.
