IG Group announced on July 30 it will acquire prediction markets operator Underdog for up to $1.3 billion, marking the latest in a wave of broker moves into the category. The deal comes as tastytrade, Robinhood, and moomoo launch CFTC-regulated prediction markets, and Binance.US prepares to apply for CFTC licensure in August. Plus500 had already partnered with Kalshi earlier this year.
The regulatory landscape remains contested. On July 27, attorneys general from 44 states filed comments urging the CFTC to withdraw its proposed Rule 40.11, which would give federal authority over event contracts tied to sports, gaming, and political events. States argue these products fall under state gambling laws, not federal commodities regulation. The same day, a federal judge blocked Minnesota’s felony ban on prediction markets, ruling federal law likely preempts state criminal restrictions.
Meanwhile, Novig secured the first MLB partnership, becoming the New York Mets’ official prediction market sponsor.
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FXnCO Insight
** Brokers are aggressively entering prediction markets despite unresolved federal-state jurisdiction battles that could fundamentally reshape which products survive regulatory scrutiny.
Source: Finance Magnates