Breon Corcoran
CEO & Executive Director
Hello, and thank you for joining at such short notice. We launched our strategic review in March, which prioritized acquisitions aligned with our M&A framework. We looked at very many opportunities, prioritizing growth and innovation, and Underdog stood out. We’re clear-eyed about the risks, including the fast-moving regulatory environment, and Underdog’s product and leadership team are well placed to win, and we structured the transaction around performance.
Today, we’re pleased to announce the acquisition of Underdog, a leading U.S. prediction markets operator. It’s a landmark deal that establishes IG as a leader in one of the most significant opportunities across trading, investing and entertainment and accelerates our growth in one of the world’s largest and fastest-growing consumer finance markets. I’ll take you through why we’re doing this, and then we’ll take your questions.
Underdog gives us an entry into a high-growth adjacent category, spanning both daily fantasy sports and prediction markets, initially in sport and then in time to come across financial markets, culture and politics. Prediction markets are growing fast. Notional volume traded in 2026 is expected to nearly triple on the prior year, with around 85% currently in sport.
Underdog is one of only three fully vertically integrated providers competing meaningfully in sport, and it brings nearly 1 million mobile-first monthly active users with strong brand equity. What’s particularly valuable is the license stack. Underdog owns a fully integrated set of licenses and market infrastructure spanning brokerage, exchange, clearing and market making. This gives it full control over product, economics and risk across daily fantasy sports and prediction markets.
The transaction structure aligns