IG Group Targets U.S. Expansion
Trading platform IG Group has set its sights on acquiring daily fantasy sports pioneer Underdog, with a deal potentially reaching $1.3 billion. But this acquisition, guided by CEO Breon Corcoran, signals IG’s ambition to solidify its presence in the U.S. prediction market sector. Corcoran, known for his tenure at Paddy Power Betfair, has been steering IG Group since December 2023. With this strategic move, he intends to usher IG into the lucrative and fast-paced U.S. retail trading market. The valuation of Underdog at $1.1 billion is pegged at 2.4 times its revenue of $466 million over the past year—a notable 21% increase from the previous year. Industry insiders would recognize the strategic positioning of this step, using Corcoran’s longstanding expertise in the betting domain.
In This News
Underdog’s Foundation and Growth
Underdog emerged in the prediction markets arena in September 2025, aligning with Crypto.com Derivatives to extend sports prediction markets across 16 states. Jeremy Levine, Underdog’s CEO, emphasized the industry’s future focus on sports prediction markets and hinted at no one doing it better than his firm. Notably, Levine has had previous business ties with Corcoran, having sold his past venture, DRAFT, to Paddy Power Betfair under Corcoran’s leadership in 2017. The acquisition is seen enhancing IG Group’s footprint in the U.S., with expectations to boost revenues and expand their customer base. Since its prediction arm’s launch, Underdog has extended to 30 states and stands as the third-largest prediction market operator in the U.S.
Financial and Market Impact
IG Group has secured a bridge facility of up to $950 million from Barclays and Goldman Sachs to fund this acquisition. The transaction, set to conclude by late 2026 or early 2027, anticipates doubling IG’s U.S. revenues and multiplying its active monthly customers tenfold. On a pro forma basis, with the integration of Underdog, the U.S. would constitute roughly 40% of IG’s group revenue—illustrating the significance of their prediction market and DFS segment. IG’s strategy also indicates potential expansions into contracts covering crypto, financial, and political outcomes, hinting at a broader market addressability.
Uncertainties and Future Developments
Despite the promising acquisition, questions linger about the seamless integration of operations and the realization of projected synergies. Whether Underdog’s customer base will adapt to IG’s broader platform remains an open question. For now, Underdog will maintain its brand identity, with Levine reporting to Corcoran. Still, the deal suggests benefits like capital efficiency from a shared balance sheet and revenue synergies across customer bases. The move is expected to mitigate IG’s dependency on single product lines, underscoring the diversification strategy. The next few quarters will reveal how effectively these integrations materialize. IG Group’s ambitious pursuit of Underdog highlights its commitment to diversification and growth within the U.S. prediction markets. The completion of the acquisition is poised to alter the market of IG Group’s operations, with results to unfold in the coming years.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
