IG Group has announced its intention to acquire Underdog, the daily fantasy sports (DFS) and predictions operator, in a move that could reach a valuation of $1.3 billion. The deal is a significant step for IG Group, a platform listed on the FTSE 100 that specializes in retail stock and crypto trading, and is led by Breon Corcoran, the former CEO of Paddy Power/Flutter.
Corcoran took over as CEO of IG Group in December 2023. Previously, he was recognized for his leadership at Paddy Power Betfair (PPB), where he served as CEO for two years after a tenure at Betfair between 2012 and 2016. Following his departure from PPB in 2018 when Peter Jackson assumed leadership, Corcoran shifted his focus to finance and investments.
In his statement regarding the acquisition, Corcoran expressed that the move would position IG Group as "a leader in US prediction markets" and accelerate its growth in the "world’s largest and fastest-growing retail trading market."
The acquisition values Underdog at $1.1 billion, representing 2.4 times its revenue for the year ending June 2026, which is projected to be $466 million, marking a year-over-year increase of 21%. An additional earnout of $200 million is contingent on Underdog meeting certain financial targets by 2026, including achieving a positive EBITDA.
To finance 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 has made strides in the prediction market sphere since launching its services in September 2025, initially in partnership with Crypto.com Derivatives. CEO Jeremy Levine stated at that time that the DFS operator intended to introduce sports prediction markets across 16 states, emphasizing that "the future of prediction markets is going to be about sports – and no one does sports better than Underdog."
Levine and Corcoran have a prior business relationship; Levine founded the DFS app DRAFT, which was sold to PPB under Corcoran’s leadership in 2017 for $19 million, with potential additional cash considerations of up to $29 million. IG Group highlighted that Corcoran was also an early investor in Underdog.
The acquisition is expected to significantly enhance IG Group's presence in the US, with projections indicating a doubling of its revenues in the country and a tenfold increase in its number of active monthly customers, thus combining an engaged customer base with efficient acquisition channels. Since launching its predictions service, Underdog has extended its reach across 30 states and has positioned itself as the third-largest prediction markets venue in the US by regulated notional volume flow.
In the first half of 2026, Underdog was reported to have captured 54% of the handle, with IG Group's quarterly EBITDA rising to $46 million in the second quarter. It is recognized as the second-largest DFS operator by revenue, trailing only PrizePicks.
Underdog has registered five million depositing customers and more than 11 million accounts. Its next growth phase will stem from a proprietary exchange aimed at internalizing economic advantages throughout its value chain.
Looking ahead, IG Group has hinted at potential expansions beyond sports betting contracts into crypto, financial, and macroeconomic matters, which could open up a significantly larger market. Furthermore, the infrastructure developed will allow Underdog to engage with the emerging onshore market in perpetual futures, benefitting from shared resources with Tastytrade.
Ultimately, this acquisition represents IG Group's strategy to diversify its portfolio and enter the burgeoning predictions market, reducing reliance on a single product line. Underdog will maintain its brand identity post-acquisition, with Levine reporting directly to Corcoran, and various synergies including improved capital efficiency and enhanced marketing capabilities are anticipated after the deal closes.
