IG Group Acquires Underdog in $1.3 Billion Deal

• IG Group Holdings recently announced the acquisition of Underdog Sports Holdings
• Underdog has focused on prediction markets services in addition to its daily fantasy sports offerings
• The total deal is worth $1.3 billion

IG Group Holdings, a global financial technology company, recently announced the acquisition of Underdog Sports Holdings in a deal worth upwards of $1.3 billion.

IG Group Holdings announced the acquisition of Underdog, a leading daily fantasy sports and prediction market operator, for a $1.1 billion consideration and $200 million payable to Underdog’s shareholders.

According to IG Group Holdings, the acquisition is expected to more than double its U.S. revenues and increase U.S. monthly active customers more than tenfold.

New Prediction Market Direction

Launched in 2020 as a company focusing on daily fantasy sports, Underdog has found recent success through its prediction market offerings. The sports prediction market and fantasy sports operator announced on Saturday, July 18, it launched its own federally licensed prediction market exchange, which is licensed by the Commodity Futures Trading Commission (CFTC).

Prior to launching its own exchange, Underdog offered prediction market access through partnerships with Crypto.com and Kalshi.

In March 2026, Underdog announced the acquisition of Aristotle Exchange DCM, Inc., and Aristotle Exchange DCO, Inc., both CFTC registered designated contract market (DCM) and derivatives clearing organizations (DCO).

Jeremy Levine, co-founder and chief executive officer of Underdog, recently appeared on CNBC with Contessa Brewer and shared prediction market volume numbers since September 2025. According to Levine’s numbers, Underdog only trails Kalshi and Robinhood in terms of total notional volume flow since the fall, ahead of Polymarket, DraftKings, and FanDuel.

• Kalshi: $86.5 billion
• Robinhood: $32.5 billion
• Underdog: $6.49 billion
• Polymarket: $6.48 billion
• DraftKings: $1.2 billion

“We built Underdog by creating the best experience for fans, and we’ve proven we can build the best products no matter how the regulatory landscape shifts. It’s why we’ve taken off in prediction markets since we launched last year. Now, with our own exchange and by joining IG, we’re going to take an incredible leap in what we can offer customers and make Underdog the place to make predictions on sports and beyond. IG’s scale, expertise, resources and reach are going to unlock our potential, expand what we’ve built, and bring our products to more audiences. I couldn’t be more excited about what we’re going to do together,” Levine said in a press release.

IG Holdings Trending Towards Predictions

According to IG Holdings, this acquisition of Underdog will establish the company as a leader in the U.S. prediction markets. Underdog currently has 1 million average monthly active users and over five million depositing customers, drawn from a total pool of 11 million registered accounts.

Underdog will continue to operate as a standalone business with its own brand, management team, and operational platform, according to IG Holdings.

“Technology is reshaping the large, high-engagement markets in which IG operates – and increasingly bringing them together. Underdog puts us at the front of that convergence: a product-first team, a leading daily fantasy sports franchise and a full license stack that together give us a differentiated position in U.S. prediction markets. It expands both our addressable market and our growth trajectory. We are delighted to welcome Jeremy and the Underdog team to IG,” Breon Corcoran, chief executive officer of IG Group, said in a press release.