iGaming Shift: IG Group Acquires Underdog and Austria Ends Gambling Monopoly

The online gambling landscape is undergoing significant transformation. In a week marked by billion-dollar acquisitions and radical legislative changes, the industry's massive shifts are becoming clear. IG Group is making headlines with its agreement to acquire the US operator Underdog. The deal is valued at up to $1.3 billion, with approximately $1.1 billion representing the enterprise value and an additional $200 million earnout tied to Underdog's net gaming revenue in 2026. Through this deal, IG Group is securing not just a strong market position in the US, but a valuable stack of licenses for brokerage, exchange, and clearing under the oversight of the Commodity Futures Trading Commission.

At the same time, Austria is taking a drastic turn in its gambling policy. The Ministry of Finance has submitted a draft law to the European Commission in Brussels to end the current online casino monopoly. This step triggers a three-month standstill period during which the law cannot be officially passed. The reform intends to open the market to multiple licensees but sets strict conditions for new applicants. Operators currently active illegally in the Austrian market must cease their operations by January 1, 2027, to remain eligible for future licenses. Otherwise, they face waiting periods of up to 24 months.

Numbers and facts

The quarterly results of various industry giants reveal both successes and challenges. Sportradar reported a 19 percent revenue increase to 378 million Euro for the second quarter but posted a 3.5 million Euro loss due to currency fluctuations. In the previous year, they recorded a profit of 49.1 million Euro. Super Group's balance sheet is more impressive, with record revenue of $684 million, an 18 percent increase. The African market, in particular, drove adjusted EBITDA up to $204 million. Flutter Entertainment, however, struggled. Despite revenue growth to $4.33 billion, adjusted EBITDA fell 45 percent to $508 million. A primary reason is the hike in UK remote gaming duty from 21 to 40 percent, which is expected to impact Flutter by about $320 million in 2026 alone.

Denmark is also making moves. The Danish Gambling Authority, Spillemyndigheden, opened the application window for land-based casino licenses on August 3, 2026. The deadline for submissions is November 3. The terrestrial casino market in Denmark is relatively small compared to the online sector, with a gross gaming revenue (GGR) of 378 million DKK in 2025, but it remains a vital part of the regulatory framework. Annual fees for these licenses are scaled according to revenue, ranging from 196,700 DKK to over 1.6 million DKK.

Background

Prediction markets are an exciting side story. Polymarket is reportedly in early talks to raise about $1 billion at a valuation exceeding $20 billion. This is noteworthy as the platform faces enforcement actions in several EU countries, including France, Spain, and Portugal. In Spain, internet service providers were ordered to block access back in May 2026. Nevertheless, partnerships between Sportradar, Genius Sports, and platforms like Kalshi and Polymarket show that data providers are closely watching the potential of these markets for political or economic events.

In Austria, player protection is at the heart of the reform. A central exclusion register will be introduced to function across all operators. Additionally, deposit limits are planned, with lower thresholds for young adults aged 18 to 26. Slot machine speed will be reduced, stakes will be limited, and a mandatory cooling-off period is required after 90 minutes of play.

"Austria's draft aims to open online gambling to multiple licensees, thereby ending the national monopoly." - Excerpt from the Austrian Ministry of Finance notification to the European Commission

Why it matters for German players

For German players, the developments in neighboring countries are an important signal. The German Interstate Treaty on Gambling 2021 (GlüStV 2021) has already implemented many of the mechanisms Austria is now pursuing. German customers playing with operators licensed by the Gemeinsame Glücksspielbehörde der Länder (GGL) are already subject to a monthly deposit limit of 1,000 Euro and a stake limit of 1 Euro per spin on virtual slots. The LUGAS system monitors these limits and cross-references them with the OASIS exclusion file. Liberalization in Austria could increase pressure on the black market throughout the DACH region by making legal alternatives more attractive. Players should ensure they only use sites on the GGL whitelist to benefit from high safety standards and legal protection. MGA or Curacao licenses provide no legal certainty in Germany and no access to player protection systems.

What it means for GGL-licensed casinos

For GGL-licensed operators, the reports from the UK illustrate how sensitive the market is to tax changes. A massive increase in the tax burden can lead to marketing budget cuts or adjustments to bonus offers for German players. The integration of data streams for prediction markets, as promoted by Sportradar and Genius Sports, could eventually enable new betting products in Germany, provided they comply with strict German sports betting laws. Currently, the GGL remains focused on the consistent enforcement of player protection and channeling players toward the legal market, ensured by the technical requirements of LUGAS and Safe.