Underdog Launches Own CFTC-Licensed Prediction Market Exchange

• Underdog announced this week the launch of its own federally licensed prediction market exchange
• The exchange is licensed by the Commodity Futures Trading Commission
• Before the launch of its own exchange, Underdog offered access through Crpto.com and Kalshi

Underdog is now wholly in the prediction market space through its own exchange.

The sports prediction market and fantasy sports operator announced on Saturday, July 18, it had launched its own federally licensed prediction market exchange. Underdog’s owned and operated exchange is licensed by the Commodity Futures Trading Commission (CFTC).

Prior to launching its own exchange, Underdog offered prediction market access through partnerships with Crypto.com and Kalshi.

First to Offer Prediction Markets

Underdog was the first sports gaming operator to offer access to prediction market on its app this previous fall, operating as an intermediary partner to other prediction market exchanges.

“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,” Jeremy Levine, CEO and co-founder of Underdog, said in a press release. “Now with our own exchange, we’re going to unlock so much more for sports fans. Prediction markets are largely about sports, and Underdog is the best at sports.”

In March 2026, Underdog announced the acquisition of Aristotle Exchange DCM, Inc., and Aristotle Exchange DCO, Inc., both CFTC registered designated contract market (DCM) and derivatives clearing organizations (DCO).

The acquisition allowed Underdog to expand its prediction market offerings by using its own exchange.

With its own CFTC-licensed exchange, Underdog will be able to provide its users with expanded prediction market offerings.

Underdog launched its prediction market offerings in early September after announcing a partnership with Crypto.com. The partnership enabled Underdog customers to trade and purchase sports event contracts across all major sports leagues, including the NFL and college football, the first of its kind between a CFTC-registered exchange and a gaming company.

Underdog Shows Prediction Market Success

Last week, Levine appeared on CNBC with Contessa Brewer and shared prediction market volume numbers since September 2025. According to Levine’s numbers, Underdog only trails Kalshi and Robinhood in terms of total notional volume flow since the fall, ahead of Polymarket, DraftKings, and FanDuel.

• Kalshi: $86.5 billion
• Robinhood: $32.5 billion
• Underdog: $6.49 billion
• Polymarket: $6.48 billion
• DraftKings: $1.2 billion