IG Group to acquire Underdog for up to $1.3 billion
UK-listed retail broker IG Group agreed to acquire U.S. prediction markets and fantasy sports operator Underdog for up to $1.3 billion. Underdog will continue as a standalone brand after the deal closes, expected late 2026 or early 2027. Underdog operates a CFTC-registered Designated Contract Market and had recently brought its exchange infrastructure in-house through the acquisition of Aristotle Exchange DCM. IG sees the deal as a major expansion into U.S. regulated prediction markets beyond sports.
IG's purchase locks in a owned U.S. prediction-market stack at a moment when white-label regulatory access is tightening. Fanatics just bought BGC's exchange and clearinghouse for the same reason, and DraftKings already built DKeX in-house. Underdog's CFTC-registered exchange lets IG control its own product timeline and economics without depending on partner rails. That matters because Congress is weighing a ban on sports event contracts and the CFTC is narrowing its public-interest gate.
The late-2026 closing window also carries risk: if legislation or enforcement shifts before completion, IG could face a renegotiation or stranded asset. The price reflects Underdog's pivot from daily fantasy to event contracts, but the standalone-brand plan means IG must absorb integration costs without immediate revenue consolidation. For rivals still shopping for exchange partners, the deal removes one more independent DCM from the market.