Prediction Market Operator Underdog Set for $1.3 Billion Sale
Daily fantasy sports and prediction market operator Underdog is about to be sold. IG Group Holdings, a global trading company, is set to purchase the site for about $1.3 billion. Initially, Underdog was a daily fantasy sports operator before expanding into prediction markets, ultimately shutting down its original media network and laying off 20% of its staff.
This new focus has led to the site’s forthcoming purchase by IG Group, according to ShareCast. IG has said this is a crucial outcome after a strategic review and “a decisive step in IG’s long-term strategy to build a global consumer engagement platform that capitalises on the rapid convergence of trading, investing and entertainment”.
Underdog’s rapid growth
Underdog has only been in the prediction market industry since September 2025. However, in that time, they’ve grown rapidly and are now the third-largest US prediction markets venue ranked by notional value flow — this is across both DFS and prediction markets. They rank behind only Robinhood and the Kalshi app.
“Technology is reshaping the large, high-engagement markets in which IG operates -and increasingly bringing them together,” IG Group CEO Breon Corcoran said. “Underdog puts us at the front of that convergence: a product-first team, a leading daily fantasy sports franchise and a full licence stack that together give us a differentiated position in US prediction markets”.
This will expand both the “addressable market and our growth trajectory,” Corcoran added. He said they are “delighted” to have the whole team under their umbrella now.
The deal is not expected to be an immediate financial success, though. According to the report, the acquisition is expected to be neutral to adjusted earnings per share during its first year. However, that figure is projected to increase by 12% by the third year. By then, the deal is also expected to generate a return on the $1.3 billion investment, reflecting IG Group’s confidence in the continued growth of the prediction market sector.
Editor’s view
Underdog rapidly became one of the leading daily fantasy sports platforms, particularly for football, where the interactive user experience was generally praised by users. That strong foundation meant that, despite the unfortunate layoffs, the company always seemed likely to land on its feet.
Now, with the impending $1.3 billion purchase, it appears they have. The new focus on prediction markets will likely strengthen the company in the long run, so while there were some losses in the interim, it’s promising to see Underdog get picked up so quickly. This is further evidence of the rapid rise of prediction markets, too, which have arguably never been more prominent.
Underdog is, in a way, a microcosm of the industry at large: its shift from daily fantasy sports to prediction markets was a response to where the market was heading. Daily fantasy and sports betting are one thing, but lately in terms of growth, they cannot match prediction markets.
The option to speculate on such a broad range of markets is what seems to appeal to traders around the world, and IG Group will now steer Underdog through its next chapter following the $1.3 billion acquisition.
Image credit: Underdog
Zachary Roberts
Zachary Roberts is an avid gamer and writer that loves to merge those things. He’s been featured on VideoGamer, ComicBook, New Leaf, Esports.net, and Sportskeeda as well as the On SI network of Sports Illustrated and Sporting News.
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