Underdog said it is acquiring Aristotle Exchange DCM and Aristotle Exchange DCO, which are regulated by the US Commodity Futures Trading Commission. The company said the deal would enable it to offer its own prediction-market exchange; financial terms were not disclosed.
The acquisition could allow Underdog to list and clear its own event contracts, including sports contracts, across the US.
The day’s most important stories, free. One email a day.
Prediction markets are competing for sports betting customers as the NFL season approaches. The report identifies Kalshi and Polymarket as competitors to FanDuel and DraftKings.
Reportedly, Novig and Underdog are expanding their multi-leg prediction market offerings in the USA. The outlet identified these combinations as an increasing source of activity in sports prediction markets.
European Gaming's weekly round-up covers IG's $1.3bn acquisition of Underdog, six sets of second-quarter results and two European regulatory developments including Austria's reform, according to the report.
City analysts see IG Group's acquisition of Underdog as valuable to the LSE-listed trading and spread betting business, while flagging regulatory risks. Bank of America and Deutsche Bank's Numis subsidiary were reported as reacting to the deal.
IG Group chief executive Breon Corcoran told analysts that regulatory uncertainty around prediction markets creates “some risk”, according to a media report. The report also said he described the $1.3bn acquisition of Underdog as focused on product strength and its team.