IG Group to acquire Underdog for up to $1.3 billion
IG Group will acquire Underdog for up to $1.3 billion in a major bet on prediction markets and event contracts. The UK-based online trading giant expects deal completion in late 2026 or early 2027. Underdog operates UDX, a CFTC-regulated exchange that recently went vertical by cutting partner fees. IG's capital backing gives Underdog scale without the cash constraints that squeezed other fantasy-sports platforms. The deal marks the first time a traditional brokerage has put its balance sheet behind a CFTC-regulated prediction market. For IG, the move provides existing U.S. customer relationships and immediate regulatory infrastructure without building from zero.
IG's $1.3 billion purchase puts a traditional brokerage's balance sheet behind a CFTC-regulated prediction market for the first time. That capital advantage matters as Congress weighs banning sports event contracts and the CFTC tightens its public-interest gate for new listings. Underdog had just gone vertical with its UDX exchange launch, cutting partner fees; IG's backing lets it scale that model without the cash constraints that squeezed other fantasy-sports platforms.
The deal also sharpens the competitive split between platforms that own their regulatory stacks and those still renting rails. For Kalshi and Polymarket, IG's entry means a well-funded rival with existing U.S. customers and no need to build brand awareness from zero. IG Group's $1.3 billion purchase of Underdog sets up the next NFL season as a liquidity test for whether that capital can convert into market share against established venues.
IG Group's $1.3 billion purchase of Underdog joins Fanatics' BGC acquisition and DraftKings' DKeX build as the third major vertical-integration play this month, as sports and trading platforms race to own their regulatory stacks rather than rent from partners.