From “Absolutely Not” to $1.3 Billion Exit: Jeremy Levine Sells Underdog to IG Group
Jeremy Levine sold Underdog to IG Group for $1.3 billion, five years after saying “Absolutely not” to any sale. The company pivoted from fantasy and a shuttered sportsbook to launch a CFTC-regulated prediction market in September 2025, now third by US regulated notional volume. The exit rewards that focused execution.
SCCG Take — This transaction marks an inflection point where regulatory approval in prediction markets drives outsized exits. Operators and investors should map CFTC pathways now, as convergence with traditional gaming accelerates value creation.
Five years after telling InGame he had zero interest in selling Underdog, founder and CEO Jeremy Levine has done exactly that. IG Group Holdings is acquiring the company for $1.3 billion, a deal that validates a sharp strategic pivot into prediction markets.
The September 2021 interview now reads as prelude. At the time, with Underdog less than two years old, Levine confirmed buyers were circling. His response to selling was unequivocal: “Absolutely not.” Things change. As reported by InGame, the transaction closes a loop on earlier ventures that Levine saw terminated by their acquirers.
Vision vs. Execution in a Nascent Market
Levine’s 2021 comments outlined a clear thesis: winning companies must offer a full suite beyond single-product bets. He cited customer overlap across fantasy, brackets, survivor pools, and poker. Underdog launched a sportsbook but shuttered it this May after acquiring Aristotle Exchange’s designated contract market and derivatives clearing organization licenses. That move delivered CFTC approval for its own prediction market, launched in September 2025.
Documents released with the deal confirm Underdog now ranks as the third-largest US prediction markets venue by regulated notional volume flow. It has moved faster than DraftKings and FanDuel on early daily average contract volume. Previous Levine companies included StarStreet, sold to DraftKings for an undisclosed sum, and Draft, sold to Paddy Power Betfair for $48 million. Both acquired entities were later closed.
The Inflection Point for Prediction Markets
In my decades observing this sector, such reversals on exit timing often trace to regulatory clarity and product-market convergence. Levine’s early insistence on building multiple platforms, rather than doubling down on a sportsbook, positioned Underdog for this outcome. The $1.3 billion price tag reflects more than hindsight; it captures the premium attached to CFTC-blessed infrastructure in an emerging category.
Client-partners should track how IG Group deploys this asset. The deal signals that prediction markets have matured from experimental add-on to standalone driver of enterprise value. Operators positioned at similar regulatory intersections may now face accelerated strategic choices.
Reporting: Jeremy Levine, Underdog No More (www.ingame.com)
Regulatory clarity in prediction markets now commands billion-dollar exits; the CFTC pathway is the new premium asset class.
We've watched operators chase sportsbook scale for years, often at a loss. Levine shut his book, grabbed CFTC licenses, and quintupled his exit multiple in months. This deal proves prediction markets aren't a novelty—they're a regulated growth engine. Clients who move now will own the category before consolidation closes the window.
- Underdog sold for $1.3B after pivoting from fantasy and sportsbook to CFTC-regulated prediction market
- Now third in US prediction market volume, outpacing DraftKings and FanDuel on early contract flow
- Levine's earlier exits to DraftKings and Paddy Power were shut down; this time he controlled the timing
SCCG angle: SCCG has navigated CFTC and state regulatory pathways for partners across 30 markets. We connect operators to the compliance architects, technology vendors, and liquidity sources that built Underdog's infrastructure—so clients can replicate the playbook, not the trial-and-error. This exit just made prediction markets investable; we make them accessible.
Gaming, betting and prediction markets — the desk’s read, every weekday.
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