IG Group Makes Billion-Dollar Bet on Underdog
The CFD giant acquires a controlling stake in the DFS and prediction platform, setting a new sector benchmark.
IG Group has made a billion-dollar move into prediction markets by acquiring a controlling stake in Underdog, the daily fantasy sports and prediction platform, according to iGaming Business (published 31 July 2026).
Why It Matters
Prediction markets sit at the fastest-growing intersection of financial derivatives and sports wagering, and a deal at this valuation signals that institutional trading firms now treat the sector as a legitimate asset class rather than a novelty. IG Group brings regulated CFD and spread-betting infrastructure across dozens of jurisdictions — distribution that Underdog, built primarily for the U.S. market, cannot replicate quickly on its own. For DFS and prediction-market operators still raising Series B rounds, this deal sets a new benchmark valuation and will likely accelerate consolidation. Gamblers and traders using either platform should watch for product integration that blurs the line between financial spread-betting and event-outcome contracts. As with all such activity, prediction markets carry real financial risk and are subject to evolving regulatory scrutiny.
Context
The IG Group–Underdog relationship has roots in a prior deal: as of July 2026, iGaming Business confirms that IG Group CEO Breon Corcoran and Underdog CEO Jeremy Levine share history dating to 2017, when Paddy Power Betfair — which Corcoran then led — acquired Levine's DFS application. That shared track record reduces integration risk, a factor that often derails post-acquisition execution in fast-moving tech-adjacent categories.
What's Next
Regulatory approvals across IG Group's licensed jurisdictions represent the immediate critical path; any product-level merger of prediction-market and CFD offerings will hinge on how regulators in the UK, EU, and U.S. classify combined contracts. Watch for a formal integration roadmap from both parties in the months following deal closure.
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