IG Group Buys Underdog for $1.3 Billion Prediction Market Push

IG Group has agreed to acquire Underdog, a US prediction markets and daily fantasy sports operator, for up to approximately $1.3 billion. The deal marks a key outcome of IG's strategic review launched in March.

The acquisition is expected to give IG a vertically integrated US licence stack, comprising a futures commission merchant, designated contract market, and derivatives clearing organisation.

Underdog has already launched prediction markets in September 2025 and its proprietary exchange in July 2026. The infrastructure could also support contracts referencing crypto, financial and macroeconomic events, as well as cultural and political outcomes.

IG expects the transaction to be broadly neutral to adjusted earnings per share in the first year and double-digit percentage accretive by year three.