UK-listed trading platform IG Group agreed to acquire U.S. daily-fantasy-sports and prediction-markets operator Underdog for up to $1.3 billion [1].
The deal represents a significant strategic push by the London-based firm to capture a larger share of the fast-growing U.S. prediction-markets sector. By absorbing a domestic operator, IG Group aims to bypass the traditional barriers to entry facing foreign financial services firms in the American market.
Underdog operates as a prominent player in the U.S. sports gaming landscape, specializing in fantasy sports and prediction markets. This acquisition allows IG Group to leverage Underdog's existing infrastructure and user base to scale its offerings across the United States [1].
Reports on the final purchase price vary between sources. While some reports cite the deal value at up to $1.3 billion [1], other reports place the figure at $1.1 billion [2]. The discrepancy suggests a deal structure that may include performance-based earn-outs, or adjusted valuation metrics based on the closing date.
The agreement was announced on Thursday, July 30, 2026 [1]. This move follows a broader trend of international trading platforms seeking a foothold in the U.S. through the acquisition of agile, tech-focused gaming companies.
IG Group's expansion into prediction markets comes as the sector sees increased interest from retail traders and sports enthusiasts alike. The company intends to integrate Underdog's capabilities to deepen its presence in the region [1].
“IG Group agreed to acquire Underdog for up to $1.3 billion”
This acquisition signals a shift in how global trading firms approach the U.S. market, moving away from organic growth toward aggressive M&A. By acquiring Underdog, IG Group is not just buying a customer list but is acquiring the regulatory and operational agility required to compete in the highly fragmented U.S. sports and prediction markets.
