IG Bets Big on Prediction Markets with $1.3 Billion Underdog Deal

IG Group announced its intention to acquire Underdog, a US-based prediction markets and fantasy sports operator, for up to $1.3 billion. The deal will significantly expand IG's presence in the US market, with expected revenue growth of over double and a tenfold increase in monthly active customers.

The acquisition includes a $1.1 billion upfront consideration and an additional $200 million earnout linked to performance. IG Group expects the transaction to provide a vertically integrated US infrastructure spanning brokerage, exchange, and clearing, while expanding its offerings beyond sports into financial, cryptocurrency, and macroeconomic event contracts.

Meanwhile, Squared Financial's offshore operations in Seychelles have faced scrutiny, with reports suggesting that new clients can no longer open accounts through the broker's website. Former Nigeria Managing Director Temitope Ijibadejo has raised concerns over pending client withdrawals and called for an investigation by local authorities.

Additionally, Finance Magnates analysis found that Cyprus' reduced corporate tax advantage over Poland may not be significant enough to justify establishing a brokerage in Cyprus. The study concluded that staffing, operating expenses, and business location often outweigh tax savings for smaller firms.