Underdog Drops Fantasy in 7 States to Chase Predictions
The IG Group acquisition target surrenders DFS licences as it bets on prediction markets instead.
Underdog will voluntarily surrender its fantasy sports licences in seven US states as it pivots to prioritise prediction market operations, according to SBC News reporting from September 2026.
Why It Matters
The move signals a meaningful strategic reallocation of resources within one of the US fantasy sports sector's more prominent operators. For daily fantasy sports (DFS) players in the affected states, the exit means losing access to Underdog's product — and narrowing an already-consolidating market. Prediction markets are operating under a different regulatory framework and have attracted growing operator interest in 2026, making Underdog's pivot a read-across for the broader shift away from traditional DFS. The timing also matters: surrendering licences voluntarily, rather than having them revoked, typically smooths a pending acquisition process.
Context
As of September 2026, Underdog is in the process of being acquired by IG Group, the UK-listed FTSE 100 fintech firm, following an agreement reached in late July 2026 (per SBC News). IG Group brings regulated derivatives and prediction-style trading infrastructure that aligns more naturally with prediction markets than with fantasy sports. The seven-state fantasy exit likely reflects both regulatory housekeeping ahead of the acquisition close and a deliberate product-mix decision by the combined entity.
What's Next
The acquisition by IG Group remains the critical near-term milestone — its completion will clarify how aggressively Underdog scales its prediction market offering nationally. Operators and regulators in the remaining DFS-active states should watch whether Underdog's licence surrenders extend further.
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