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IG Group to Significantly Expand U.S. Fantasy Sports Footprint with Underdog Acquisition
IG Group's proposed $1.1 billion acquisition of U.S. sports gaming company Underdog is set to dramatically expand its presence in the American market, more than doubling its U.S. revenue and increasing its U.S. monthly active customers by over tenfold. This strategic move will see prediction markets and daily fantasy sports account for 27% of the combined group's revenue, with the U.S. representing 41% of total group revenue post-acquisition.
Underdog has demonstrated remarkable growth, with its net revenue surging from $9 million in 2021 to $441 million in 2025, making it the fastest-growing sports gaming company in the U.S. through its first six years. The company reported a 118% year-over-year increase in third-quarter revenue to $105 million, highlighting its rapid expansion and significant customer base of over 5.5 million deposited users.
In fantasy football, Week 6 is seeing several key player updates impacting lineups: Baltimore Ravens quarterback Lamar Jackson is day-to-day with an ankle injury but has a "realistic chance" to play Sunday, while Patriots wide receiver A.J. Brown is designated to return from injured reserve, though his Week 6 availability remains uncertain. Additionally, Jets running back Breece Hall is likely to miss another game due to a quad injury, and Falcons quarterback Michael Penix is on track to start despite a rib injury.
The broader fantasy sports market is projected for substantial growth, with the global market size expected to increase from $43.74 billion in 2026 to approximately $137.81 billion by 2035, at a compound annual growth rate of 13.60%. A key driver of this expansion is the increasing integration of artificial intelligence (AI), which analyzes real-time player statistics and historical data to provide team recommendations, thereby enhancing user engagement and aiding in the detection of suspicious gameplay.
The Bottom Line
Strategic acquisitions like IG Group's move for Underdog, coupled with the rapid adoption of AI for enhanced user experience and robust market growth projections, underscore a dynamic and evolving fantasy sports landscape. However, regulatory uncertainties surrounding prediction markets remain a critical factor to watch.
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