UK Based IG Group Acquires Prediction Market Operator Underdog for £1 Billion

The British trading firm IG Group has made its first foray into the prediction markets space with a £1 billion deal to acquire Underdog.

The American outfit is a leading player in daily fantasy sports and prediction markets, with the latter niche in particular enjoying a remarkable breakout over the past 12 months.

IG Group were evidently keen to make their move, spending £820 million in upfront enterprise value in Underdog with a further £160 million to be paid to Underdog’s shareholders if specific performance targets are met.

With Gibraltar’s gambling authority potentially opening the door to the legalisation of prediction markets in Europe, IG Group has seemingly timed their acquisition perfectly… could the UK be the next jurisdiction to approve prediction platforms?

Significant Opportunities

The deal will be completed based on the issuance of around 24 million new IG Group shares, as well as a cash consideration of approximately £280 million. Once the acquisition has been approved, IG will pay a further £120 million to clear Underdog’s existing debts.

To facilitate the acquisition, IG Group has turned to both Barclays Bank and Goldman Sachs for bridging loans said to be worth a combined £705 million.

It expands the repertoire of the FTSE 100 listed IG Group, the London-based trading provider that offers their clients access to more than 19,000 instruments and markets worldwide.

Not only will the move open doors for them in the United States, where Underdog is amongst the leading platforms in the burgeoning prediction market and DFS spaces, but it could also see the firm expand more forcefully into Europe, where prediction markets look set to be legalised in the near future.

The CEO of IG Group, Breon Corcoran, boasts a long history in the sports betting industry from his time at Paddy Power and Betfair. You suspect that he was a key driver behind the takeover bid.

“The acquisition of Underdog establishes IG as a leader in U.S. prediction markets – one of the most significant opportunities across trading and entertainment – and accelerates our growth in the world's largest and fastest-growing retail trading market,” Corcoran said.

There’s been cause for a double celebration at IG Group HQ, with the company announcing an 18% jump in revenues in the first half of 2026 to just shy of £650 million.

Backing The Underdog

Established in 2020, Underdog has grown to become a major player in the prediction market and DFS niche in North America, with net revenue reaching £346 million during their latest financial year – an annual increase of 21%.

Underdog offers daily fantasy contests and prediction markets, as well as launching its own sports wagering exchange last month.

That exchange platform will certainly be of interest to the IG Group in terms of their UK coverage, where peer-to-peer exchanges are very much legal and regulated via licensing approval from the Gambling Commission.

The UK regulator has previously poured cold water on the idea of prediction markets being approved domestically, stating that any interested party would need to be approved for a betting intermediary gambling licence to offer ‘yes or no’ style contracts on these shores.

But doors have been opened in Europe, with the government of Gibraltar approving the licence applications of both ADI Predictstreet and WagerWire in time for the football World Cup this summer.

Governors have shown an appetite for predictions-based wagering, with the likelihood that more operators will be approved in the near future.

That doesn’t necessarily mean they will be given the green light in individual European jurisdictions, but there has been a softening of the previous anti-predictions stance on the continent… it will be interesting to see where that leads in 2027.