Underdog Tells IG Group What $1.3B Actually Buys
CEO Jeremy Levine pitches federal prediction markets model to London shareholders at $1.3B valuation
Underdog CEO Jeremy Levine addressed IG Group shareholders Thursday to justify the London-listed trading company's $1.3 billion acquisition, arguing the deal purchases a vertically integrated, federally regulated prediction markets operator — not simply a sports app.
Why It Matters
For bettors and investors alike, the framing signals that Underdog intends prediction markets to sit at the core of its identity, not as a regulatory workaround. Federal regulation, rather than state-by-state licensing, could give Underdog a structural cost and compliance advantage over traditionally licensed sportsbooks. IG Group shareholders paying $1.3 billion need confidence the asset class holds long-term value — Levine's direct pitch at the seminar suggests the deal faces scrutiny from at least some institutional investors. If prediction markets gain durable federal standing in the U.S., early vertical integration becomes a significant moat.
Context
Underdog built its reputation in daily fantasy sports before pivoting aggressively into prediction markets, which operate under Commodity Futures Trading Commission oversight rather than state gambling regulators. As of October 2026, prediction markets occupy contested legal territory in the U.S., with established sportsbook operators and regulators actively debating their scope, per SBC Americas. IG Group, best known as a CFD and spread-betting platform, appears to be using the acquisition to gain a foothold in regulated U.S. wagering-adjacent products.
What's Next
Levine's public investor address suggests IG Group will push toward formal deal close with shareholder approval as the immediate milestone. Watch for CFTC guidance updates and any state-level legal challenges that could reshape the federal prediction markets framework Underdog is betting its valuation on.
Gambling involves financial risk; prediction markets carry both market and regulatory risk.
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