IG Group Buys Underdog for $1.1bn to Enter US Markets
FTSE 100 broker merges retail trading with US prediction markets in a landmark $1.1bn deal.
FTSE 100 broker IG Group has agreed to acquire US sports company Underdog for $1.1 billion, as of July 2026, marking a direct entry into America's fast-expanding prediction markets sector, according to SBC News.
Why It Matters
The deal merges three high-growth verticals — retail trading, prediction markets, and sports gaming — under a single publicly listed operator. For US bettors and market participants, Underdog's existing footprint gives IG Group an immediate distribution channel rather than a slow organic build. Prediction markets have attracted intense regulatory and investor scrutiny through 2025–2026, and a $1.1 billion price tag signals institutional capital now treats them as durable, not speculative. Operators and affiliates in adjacent DFS and sportsbook spaces should expect sharper competition for user acquisition budgets.
Context
IG Group built its core business around contracts for difference and spread betting for retail traders globally. Underdog established itself in the US through fantasy sports and prediction-style contest formats, accumulating a user base at the intersection of sports fandom and financial speculation. The convergence of regulated prediction markets and traditional brokerage is a structural shift — not a novelty — accelerated by US regulatory openings this year.
What's Next
The transaction remains subject to regulatory approvals, meaning a closing timeline is not yet confirmed as of July 2026. Watch for filings with UK and US regulators as the clearest signal of deal progression.
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