IG Group, the FTSE 100-listed trading platform, is making a significant move into the prediction markets by attempting to acquire Underdog, a daily fantasy sports (DFS) and prediction operator, in a deal valued at up to $1.3 billion.
At the helm of IG Group is Breon Corcoran, a seasoned figure in the gambling industry who previously served as CEO of Paddy Power Betfair. Corcoran assumed the role of CEO at IG Group in December 2023. Known for his leadership at Betfair from 2012 to 2016, Corcoran exited the industry in 2018 when Peter Jackson took over at PPB, subsequently transitioning into finance and investments.
In a statement regarding the acquisition, Corcoran noted that the deal would position IG Group as a leading entity in the U.S. prediction markets and would accelerate its growth in what he described as the "world's largest and fastest-growing retail trading market."
The structure of the deal places a valuation of $1.1 billion on Underdog, which corresponds to 2.4 times its revenue for the 12 months ending in June 2026, amounting to $466 million—a 21% increase year-over-year. An additional earnout of roughly $200 million will be available to Underdog's shareholders, contingent upon achieving 2026 net gaming revenue targets and a positive EBITDA for that year.
To facilitate this acquisition, IG Group has secured a bridge facility worth up to $950 million, provided by Barclays Bank PLC and Goldman Sachs. The transaction is anticipated to close in late 2026 or early 2027.
Underdog has made strides in the prediction markets since launching in September 2025 through a partnership with Crypto.com Derivatives. CEO Jeremy Levine indicated during the announcement that the company aims to introduce sports prediction markets across 16 states. He has historical ties to Corcoran, having founded the DFS app DRAFT, which was purchased by PPB for $19 million in 2017, with further financial considerations up to $29 million. Corcoran was also an early-stage investor in Underdog.
IG Group's announcement emphasized that this acquisition significantly boosts its presence in the U.S. market, projecting that it will more than double IG’s U.S. revenues and increase the number of monthly active customers tenfold. Since Underdog's predictions segment launch, the company has expanded to 30 states, integrating parlay functionalities, and has migrated to Kalshi, becoming the third-largest prediction-markets venue in the U.S. based on regulated notional volume.
The latest reports indicate that Underdog captured 54% of the handle in the first half of 2026, while its quarterly EBITDA climbed to $46 million in the second quarter. As the second-largest DFS operator by revenue, behind PrizePicks, Underdog now counts five million depositing customers and over 11 million registered accounts, priming it for future growth through its newly launched proprietary exchange, which is set to streamline its operations across the value chain.
Despite its initial focus on sports betting contracts, IG Group has signaled possible expansions into contracts tied to cryptocurrencies, financial metrics, and various macroeconomic and political events. This diversification could significantly expand their addressable market.
This acquisition aligns with IG Group's strategy to mitigate reliance on any single product line while allowing Underdog to maintain its brand identity post-acquisition. Levine will report directly to Corcoran, and the merger is expected to yield operational synergies, including shared capital efficiency and enhanced revenue from an integrated customer base and product offerings.
