The IG Group Underdog acquisition could be worth up to $1.3 billion, which would give IG Group ownership of the U.S. daily fantasy sports and prediction-markets operator if the transaction closes as planned. Announced on July 30, 2026, the proposed deal includes upfront consideration based on an enterprise value of approximately $1.1 billion plus a potential shareholder earnout of about $200 million.
The transaction is expected to close in late 2026 or early 2027, subject to required U.S. regulatory approvals and other closing conditions. Underdog is expected to continue operating as a standalone brand after completion.
IG Group Underdog Acquisition Deal Breakdown
The IG Group Underdog acquisition combines cash, newly issued IG shares and a potential performance-based earnout for Underdog shareholders.
According to IG Group’s official acquisition announcement, the upfront enterprise value is approximately $1.1 billion. The expected upfront equity value is about $963 million.
IG expects to issue approximately 24.1 million new ordinary shares, representing roughly 6.8% of the enlarged share capital. The company also expects to pay approximately $380 million in cash and repay around $160 million of Underdog’s existing debt at completion.
| Deal component | Approximate value |
|---|---|
| Upfront enterprise value | $1.1 billion |
| Upfront equity value | $963 million |
| Cash payment | $380 million |
| New IG shares | 24.1 million |
| Existing Underdog debt to be repaid | $160 million |
| Shareholder earnout | Up to $200 million |
| Maximum shareholder consideration | Up to $1.3 billion |
The shareholder earnout is separate from a management incentive plan for eligible Underdog employees. That plan could pay up to $850 million based on future performance, but IG said it would be self-funded from Underdog’s earnings and is not part of the consideration paid to selling shareholders.
iGaming Business also reported on the transaction structure and its potential value of up to $1.3 billion.
Underdog Brings DFS and Prediction Markets to IG
Underdog was founded in 2020 and operates in the U.S. daily fantasy sports and prediction-markets sectors.
The company’s recent financial performance provides context for the size of the transaction. Underdog generated approximately $466 million in net revenue during the 12 months ending June 30, 2026, representing a 21% increase from the equivalent prior-year period.
For IG, the IG Group Underdog acquisition would therefore add a U.S. business with trailing 12-month net revenue approaching half a billion dollars.
The transaction also gives IG greater exposure to business areas that have been attracting attention across the U.S. gaming market, particularly prediction markets.
Gambling Insider also covered IG’s agreement to acquire Underdog for potential consideration of up to $1.3 billion.
Underdog Will Remain a Standalone Brand
The proposed change in ownership does not mean the Underdog brand is expected to disappear.
IG’s announcement states that Underdog is expected to continue operating as a commercially standalone business with its own brand, management team and operating platform following completion.
That structure would allow IG to expand its U.S. operations while retaining the consumer-facing Underdog business rather than immediately combining it with another brand.
The deal is still pending, however. Completion is expected in late 2026 or early 2027 and remains subject to required approvals and closing conditions, including clearance or expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
Until those conditions are satisfied and the transaction closes, Underdog has not formally become part of IG Group.
What the Acquisition Means for IG’s U.S. Expansion
The IG Group Underdog acquisition would represent a significant expansion of IG’s position in the United States.
IG said the proposed transaction is expected to more than double its U.S. revenue and increase its U.S. monthly active customer base by more than ten times. On a pro forma 2025 basis, the company said the U.S. would have accounted for approximately 40% of group revenue compared with about 22% before the transaction.
Those figures illustrate why Underdog represents more than a standalone acquisition target. The transaction would materially increase the importance of the U.S. market within IG’s overall business.
At the same time, the deal should still be described as proposed rather than completed. Regulatory review, final closing requirements and other conditions must be satisfied before the ownership change takes effect.
For players following changes in gaming companies and platform ownership, that distinction matters. Announcing an acquisition does not immediately change the status of a platform or automatically alter the account, game or eligibility rules experienced by individual users.
What Players Should Watch Next
The next major development will be completion of the transaction.
Players following Underdog or other online gaming businesses should watch for confirmation that required approvals have been obtained and the deal has officially closed. Any future changes to platform availability, account rules or product offerings should be evaluated only when the companies announce them.
Players should also continue checking their own eligibility rather than assuming that a corporate acquisition changes where a platform can be accessed. This guide explains how to check sweepstakes casino eligibility before playing.
Changes in ownership also do not necessarily mean immediate changes to what players see inside a platform. Game availability can evolve for many reasons, as explained in this guide to why sweepstakes casino game libraries change over time.
Players comparing services can also review how a sweepstakes casino game lobby is organized before choosing where to participate.
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The IG Group Underdog acquisition remains one of the larger gaming-industry ownership deals announced in 2026, with potential shareholder consideration of up to $1.3 billion.
For now, the key facts are that the deal remains pending, Underdog is expected to retain its standalone brand, and completion is anticipated in late 2026 or early 2027 if the required conditions are satisfied.
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