IG Group Secures Underdog in Deal Worth Up to 1.3 Billion Dollars
Amir Koch · Jul 31, 2026
IG Group Secures Underdog in Deal Worth Up to 1.3 Billion Dollars
IG Group, the UK-based trading platform provider, has completed the purchase of Underdog, a company focused on prediction markets and daily fantasy sports, for a total value reaching 1.3 billion dollars, which includes 1.1 billion dollars paid upfront along with as much as 200 million dollars in potential earnouts. The transaction positions IG Group to double its revenue from operations in the United States while adding substantial numbers of active users and opening pathways into prediction markets beyond traditional sports categories. Underdog delivered 46 million dollars in EBITDA during the second quarter and generated 466 million dollars in revenue across the twelve months that concluded on June 30.
Deal Structure and Immediate Effects
Payment terms break down into a base amount of 1.1 billion dollars transferred at closing with an additional 200 million dollars contingent on performance milestones, which allows both parties to align incentives around continued growth in user engagement and market expansion. Observers note that this structure provides IG Group with immediate control over Underdog's established user base and technology platform while tying future payouts to measurable results in active accounts and revenue generation. The acquisition integrates Underdog's daily fantasy sports offerings directly into IG Group's existing trading infrastructure, creating a combined portfolio that serves both seasoned traders and newer participants interested in event-based outcomes.
Revenue and User Growth Projections
Company filings indicate the deal will double IG Group's current United States revenue stream through the addition of Underdog's operations, which already demonstrate strong momentum in the prediction markets sector. Active user counts are expected to rise significantly once the platforms combine, since Underdog brings a distinct audience segment focused on daily fantasy competitions that complements IG Group's core trading products. Those familiar with the transaction point out that the expanded user pool also creates opportunities for cross-selling trading tools to fantasy sports participants who may not have previously engaged with traditional financial markets.
Underdog's financial performance for the twelve months ending June 30 shows 466 million dollars in total revenue alongside 46 million dollars in second-quarter EBITDA, figures that underscore the platform's scale and operational efficiency ahead of the ownership change. These results reflect sustained demand for prediction market products in the United States, where regulatory clarity in several states has supported broader participation. Integration plans call for maintaining Underdog's brand identity while gradually introducing IG Group's risk-management systems to handle increased transaction volumes across both sports and non-sports categories.
Expansion Beyond Sports Markets
The transaction explicitly targets growth in non-sports prediction markets, an area where Underdog has already begun developing products that cover political events, entertainment outcomes, and other verifiable occurrences. IG Group intends to leverage its global compliance framework to scale these offerings into additional jurisdictions, using the combined technology stack to manage liquidity and settlement across diverse event types. Data from the twelve-month period ending June 30 demonstrates that Underdog's existing user base responds positively to a wider range of market options, which supports the strategic rationale for extending beyond traditional sports betting formats.
Regulatory and Market Context
IG Group operates under established oversight in multiple regions, and the acquisition aligns with ongoing consolidation trends in the prediction markets and fantasy sports space. The combined entity will continue to navigate state-by-state requirements in the United States, where licensing and consumer protection standards vary. Industry reports from the American Gaming Association highlight how such deals accelerate platform maturity while concentrating technological investment in fewer, larger operators.
Financial details released alongside the announcement confirm that Underdog's 46 million dollar second-quarter EBITDA and 466 million dollar trailing revenue provide a solid foundation for the earnout targets. Integration timelines outlined by IG Group project phased rollout of shared infrastructure beginning in the third quarter, with full migration of user accounts and product catalogs targeted for completion within twelve months.
Conclusion
The acquisition of Underdog by IG Group for up to 1.3 billion dollars represents a clear step toward greater scale in the United States prediction markets sector, driven by concrete revenue figures and user metrics rather than speculation. With 1.1 billion dollars paid at closing and up to 200 million dollars in earnouts, the structure ties compensation to future performance while immediately expanding IG Group's reach into daily fantasy sports and non-sports events. Underdog's 466 million dollars in revenue and 46 million dollar quarterly EBITDA for the period ending June 30 supply measurable evidence of the platform's contribution to the combined business. Observers tracking the sector will monitor how the integration affects active user counts and the pace of expansion into new market categories over the coming quarters.