Underdog has launched a federally approved prediction market exchange ahead of the NFL season. The platform can now operate markets directly rather than depend on Kalshi or Crypto.com.
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A March 2026 acquisition created the foundation for the new Underdog prediction market exchange.
Underdog bought Aristotle Exchange DCM, Inc. and Aristotle Exchange DCO, Inc. The deal gave the company a CFTC registered designated contract market and derivatives clearing organization.
As a result, Underdog can list and clear prediction contracts through its own infrastructure. Earlier agreements with Kalshi and Crypto.com required third party participation and reduced the share of revenue kept by Underdog.
CEO and cofounder Jeremy Levine expects a “huge leap” in activity as the NFL season approaches. He said:
“We started this company with a clear belief – there is so much more to be built for sports fans in America.
“Despite incredible changes in the U.S. market in recent years, through the twisting journey from fantasy sports to regulated sports betting to prediction markets, we still see an industry that far too often simply misses in serving sports fans.
“Now with our own exchange, we’re going to unlock so much for more sports fans. Prediction markets are largely about sports, and Underdog is the best at sports.”
Underdog first entered the prediction market sector through Crypto.com last September. That launch made Underdog the first sports gaming operator to offer prediction markets through such a partnership.