IG Group's $1.3bn Underdog Bet on US Prediction Markets
The London trading giant is wagering that US event-contract regulation will validate a $1.3bn fantasy-sports pivot.
IG Group has agreed to acquire fantasy sports and prediction-market operator Underdog for $1.3 billion, a bet that US event-trading regulation will mature fast enough to justify the price.
Why It Matters
As of August 2026, this deal represents one of the largest acquisitions in the US alternative-sports-wagering space, according to iGaming Business. For operators and investors watching prediction markets, the transaction signals that established financial-trading firms now view event contracts as a credible, scalable product category — not a regulatory curiosity. IG Group's core business is contracts-for-difference and spread betting, so folding in Underdog's user base gives it a direct on-ramp into US retail audiences it cannot reach through its traditional instruments. If US regulators clarify the legal status of prediction markets favourably, the $1.3 billion entry price could look conservative; if they do not, IG Group carries significant integration risk.
Context
Underdog, led by CEO Jeremy Levine, built its audience primarily through fantasy sports before pushing into pick'em and prediction-style contests. IG Group, a London-listed trading platform, has been expanding beyond European retail CFD clients for several years. The acquisition structure and regulatory approval timeline had not been fully disclosed as of the source publication date (13 August 2026).
What's Next
The immediate milestones are regulatory clearance in relevant jurisdictions and confirmation of Levine's post-merger leadership role — both of which will signal how aggressively IG Group plans to move on the US prediction-market opportunity. Watch for any CFTC or state-level guidance on event contracts, which could reprice the strategic logic of this deal overnight.
Source: iGaming Business. Gambling involves financial risk; this article is for informational purposes only.
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