IG Group has announced its proposal to acquire Underdog, a daily fantasy sports (DFS) and predictions operator, in a transaction that could reach as high as $1.3 billion. Breon Corcoran, formerly the CEO of Paddy Power/Flutter, now heads IG Group, a company listed on the FTSE 100 and involved in retail stock and cryptocurrency trading. Corcoran took on the role of CEO in December 2023 and is known for his leadership at Paddy Power Betfair (PPB) from 2016 until 2018.
Corcoran, who also worked at Betfair prior to his tenure at PPB, stepped away from the sector in 2018 after Peter Jackson assumed leadership at PPB. He spent several years engaged in finance and investments before returning to the industry. In a statement released Thursday evening, Corcoran articulated that the acquisition of Underdog would position IG Group as a leader within the US prediction markets and would bolster its growth in the largest and fastest-growing retail trading market globally.
The deal values Underdog at $1.1 billion, or 2.4 times its revenue for the 12 months up to June 2026, which stands at $466 million, reflecting a 21% year-over-year growth. Additionally, there’s a potential earnout reaching approximately $200 million payable to Underdog's shareholders, contingent on meeting net gaming revenue targets for 2026 and achieving a positive EBITDA.
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 anticipated to finalize in late 2026 or early 2027.
Underdog entered the market for predictions in September 2025 by collaborating with Crypto.com Derivatives. At that event, CEO Jeremy Levine explained to CNBC that the DFS operator planned to introduce sports prediction markets across 16 states. Levine emphasized that prediction markets would focus significantly on sports, asserting Underdog's expertise in this area.
Jeremy Levine, who previously founded the DFS app DRAFT, sold it to PPB under Corcoran's leadership in 2017 for $19 million, with additional payments of up to $29 million. Levine has continued to maintain a connection with Corcoran, who was an early investor in Underdog, as noted in IG Group’s recent announcement.
IG Group's acquisition will significantly enhance its presence in the U.S. market, with projections indicating it could more than double the group’s revenue from the region and increase its monthly active customer base by over ten times, merging a large, engaged audience with an efficient acquisition model.
Underdog's predictions division has expanded to 30 states since its inception and has become the third-largest venue for prediction markets in the U.S. in terms of regulated notional volume flow, encompassing both prediction markets and DFS combination trades. The product has reportedly achieved 54% of the handle in the first half of 2026, with the group EBITDA rising to $46 million in the second quarter. Underdog ranks as the second-largest DFS operator by revenue, following PrizePicks, with five million depositing customers and over 11 million registered accounts.
IG Group foresees opportunities for further growth in prediction markets, including potential expansions into contracts related to cryptocurrency, financial and macroeconomic indicators, and even cultural and political outcomes. They believe this approach could broaden their addressable market significantly. This new exchange infrastructure will position Underdog advantageously in the upcoming onshore market for perpetual futures, offering shared infrastructure with Tastytrade for additional long-term growth avenues.
The deal indicates a strategic move for IG Group to diversify its offerings and enter the rapidly expanding prediction markets. They expect that the acquisition will reduce dependency on any one product line. Following the completion of the acquisition, Underdog will retain its brand identity, with Levine reporting directly to Corcoran. Expected synergies include improved capital efficiency from a combined balance sheet, additional revenue from multi-product relationships, and collaborative efforts in product development, marketing, and regulatory compliance.
