IG Group has announced plans to acquire Underdog, a daily fantasy sports (DFS) and predictions operator, in a deal valued at up to $1.3 billion. Leading the initiative is Breon Corcoran, who took on the role of CEO at IG Group in December 2023. Corcoran is recognized for his previous leadership as CEO of Paddy Power Betfair (PPB) for two years and his earlier tenure at Betfair from 2012 to 2016.
After leaving PPB in 2018 when Peter Jackson succeeded him, Corcoran shifted his focus to finance and investments but has now returned to the sports betting arena. In a statement released on Thursday, Corcoran emphasized that acquiring Underdog will position IG Group as a standout player in the U.S. prediction markets and will accelerate its growth in the largest and fastest-growing retail trading market.
The valuation of Underdog at $1.1 billion reflects a revenue multiple of 2.4 times its projected annual revenue of $466 million through June 2026, a figure that signifies a 21% increase year-over-year. Additionally, Underdog’s shareholders stand to gain up to about $200 million, dependent on achieving specific net gaming revenue targets and a positive EBITDA in 2026.
To facilitate this acquisition, IG Group has secured a bridge financing arrangement of up to $950 million with Barclays Bank PLC and Goldman Sachs. The transaction is anticipated to wrap up in either late 2026 or early 2027.
Underdog began its foray into prediction markets in September 2025 through a collaboration with Crypto.com Derivatives. CEO Jeremy Levine revealed at that time that Underdog planned to roll out sports prediction markets across 16 states. He stated, "While still new and evolving, one thing is clear – the future of prediction markets is going to be about sports – and no one does sports better than Underdog."
Levine has historical ties with Corcoran; he founded the DFS app DRAFT, which was sold to PPB for $19 million in 2017. Corcoran participated as an early-stage investor in Underdog, as highlighted in IG Group’s announcement.
The acquisition is projected to significantly enhance IG Group's presence in the U.S., potentially more than doubling the company's revenues from the region, while also increasing its active customer base by more than tenfold.
Underdog has so far expanded into 30 states with its parlay offers and has integrated with Kalshi, becoming the third-largest U.S. venue for prediction markets based on regulated notional volume, encompassing both prediction markets and DFS combination trades. In the first half of 2026, Underdog reported that 54% of its handle came from this source, with IG Group noting a rise in group EBITDA to $46 million in Q2.
As the second-largest DFS operator by revenue, trailing only behind PrizePicks, Underdog has amassed five million depositing customers and over 11 million registered accounts. Moving ahead, its growth trajectory is expected to be driven by its proprietary exchange, which allows for internalizing the economics throughout the value chain.
Looking forward, while IG Group initially aims to concentrate on sports betting contracts, it hinted at possible future expansions into contracts related to crypto, financial, macroeconomic, cultural, and political outcomes, broadening its market reach. The infrastructure in place also positions Underdog to capitalize on the emerging onshore market for perpetual futures.
Upon completion of the deal, Underdog will continue as a standalone brand, with Levine directly reporting to Corcoran. IG Group anticipates discovering various synergies post-acquisition, including increased capital efficiency through a shared balance sheet and revenue opportunities stemming from multi-product relationships and shared marketing and regulatory resources.
