Underdog revenue jumps 100% as IG Group takes Q3 tumble before deal completion

Investors are set to hear more information regarding IG Group’s takeover of Underdog, after the FTSE 100 firm revealed that the newest addition to its portfolio saw 100% year-on-year growth in Q3. US-based Underdog, a sports company which operates both daily fantasy sports (DFS) and a prediction market platform, is set to be acquired by IG Group in a $1.1bn deal either later this year or in early 2027, sparking rumours around the latter’s plans. Today marked the first day in which IG Group has given a financial update since the deal announcement. “Underdog traded strongly, with Q3 2026 net revenue up over 100% year-on-year to approximately $105 million, ahead of the seasonally important Q4 period, which accounted for more than a third of Underdog’s revenue in 2025,” it stated. Since the acquisition was announced, Underdog has shut its DFS operations in seven states which ruled operators can’t mix state-licensed DFS with federal event contracts, hinting at a prioritisation of its predictions operations. However, Underdog subsequently filed lawsuits against multiple states to block local enforcement under the Supremacy Clause, aggressively triggering a legal battle, though the initial voluntary surrender would point at a shift from DFS to predictions. It will be interesting to see what develops from this situation, especially given that IG Group Chief Executive Officer Breon Corcoran praised Underdog’s “leading daily fantasy sports franchise” in his reasoning for the acquisition. Does Underdog stand a chance in the UK and Europe? The saga is also progressing in the midst of the UK, the home of IG Group, weighing up its stance on prediction markets. Last month, the Financial Conduct Authority (FCA) confirmed that it was in discussions to reassess whether consumers should have wider access to investment products, which could lead to UK consumers gaining access to predictions products. SBC Summit in Lisbon last week played host to the Global Prediction Market Forum, where many speakers also expressed confidence in a future for predictions platforms in Europe. It looks like Underdog may have to provide a much-needed boost to IG Group, though, as Q3 2026 total revenue for the company is expected to be approximately £240m – a drop of around 14% YoY. This led to an initial plummet in IG Group’s shares in early market trading on the London Stock Exchange, with its stock falling from £9.79 to as low as £9.58 within 40 minutes of market open. Shares have since drastically recovered and now sit at £9.88. But there is still much uncertainty surrounding the 10-figure deal, and more is set to be revealed on Thursday, when IG Group leadership is set to host a virtual seminar on Underdog for institutional investors and analysts.