IG Group, a trading platform, has announced its intention to acquire Underdog, a daily fantasy sports (DFS) and predictions operator, in a deal that may reach up to $1.3 billion. This move is spearheaded by Breon Corcoran, the former CEO of Paddy Power and Flutter, who became IG Group's CEO in December 2023.
Under Corcoran's leadership, IG Group aims to become a frontrunner in the US prediction markets, accelerating growth within the largest expanding market for retail trading. Notably, the deal values Underdog at $1.1 billion, reflecting a multiple of 2.4 times its revenue in the 12 months ending June 2026, which stands at approximately $466 million—an increase of 21% from the prior year. Alongside this valuation, an earnout of around $200 million is contingent upon Underdog meeting net gaming revenue targets by 2026 as well as achieving a positive EBITDA for that same year.
To finance the acquisition, IG Group has secured a bridge facility of up to $950 million with Barclays Bank PLC and Goldman Sachs. The acquisition is anticipated to finalize in late 2026 or early 2027.
Underdog gained entry into the prediction market space in September 2025 through a collaboration with Crypto.com Derivatives. CEO Jeremy Levine expressed enthusiasm for the futures of prediction markets being centered around sports, asserting that no one excels in this area as well as Underdog. Levine has a previous connection with Corcoran, having founded the DFS app DRAFT, which was sold to Paddy Power Betfair for $19 million in 2017 with additional potential earnings of up to $29 million. Corcoran was also an early investor in Underdog.
IG Group stated that the acquisition significantly boosts its presence in the US market. Upon completion, it is projected to more than double the group's revenues from the US and to increase its active customer base in the region tenfold. Since launching its predictions segment, Underdog has expanded into 30 states and migrated to Kalshi, positioning itself as the third-largest prediction-markets venue by regulated flow of notional volume in the US.
Currently, Underdog is reported to have achieved 54% of handle in the initial half of 2026, alongside a quarterly EBITDA of $46 million in Q2. Underdog operates as the second-largest DFS operator in terms of revenue, following PrizePicks. The platform has attracted five million depositing customers and over 11 million registered accounts.
Moving forward, IG Group plans to explore contracts not only in sports betting but also touch on areas related to crypto and financial and macroeconomic outcomes, suggesting an expansion into a substantially larger market.
The company envisions that this structure, combined with a shared infrastructure with Tastytrade, positions Underdog for new opportunities in the emerging market of perpetual futures, furthering avenues for long-term growth. After the acquisition, Underdog will maintain its brand identity, with Levine reporting directly to Corcoran. The closure of the deal is expected to yield synergies in capital efficiency, product relationships, and shared resources across marketing and regulatory licenses.
