IG Group Offers to Buy Underdog in Prediction Markets Push

Gaming Edge’s TL;DR

• IG Group is looking to acquire Underdog.
• The sale would give IG Group a major foothold in the US prediction market industry.

IG Group has agreed to acquire Underdog for up to $1.3 billion, giving the London-listed trading firm a much bigger position in the US prediction markets and fantasy sports business.

The deal is the clearest gambling-adjacent headline from a broader week in trading-industry news because it would significantly expand IG’s US footprint. According to the terms, the transaction includes about $1.1 billion upfront and another $200 million in earnout tied to performance.

IG expects the acquisition to more than double its US revenue and increase its monthly active customers in the country by more than tenfold. Those figures suggest the company sees Underdog as more than a bolt-on asset and instead as a major step into a fast-growing part of the US wagering and trading landscape.

What the deal includes

Underdog is a US prediction markets and fantasy sports operator. Prediction markets have increasingly drawn attention from both betting audiences and financial-market firms looking for new products and younger users.

Finance Magnates reported that IG’s agreement values the deal at up to roughly $1.3 billion, with a late 2026 or early 2027 closing timeline still an open question.

For readers tracking where prediction markets may be headed next, the key takeaway is straightforward: a major listed broker is willing to spend more than $1 billion upfront to gain scale in the category.

Based on reporting by Tareq Sikder for Finance Magnates.