Published on: March 9, 2026, 11:45h.
Updated on: March 9, 2026, 11:45h.
- Acquisition enables gaming firm to list event contracts, including sports options, directly.
- Aristotle operates the Predictit political predictions platform.
- Buyer states this agreement allows operations nationwide.
Underdog has finalized the acquisition of Aristotle Exchange DCM, Inc. and Aristotle Exchange DCO, paving the way for the gaming firm to provide federally regulated prediction markets on a national level.
The targets include Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO), both governed by the Commodities Futures Trading Commission (CFTC), which oversees prediction markets in the U.S.
The acquisition allows Underdog to establish its own federally-compliant prediction market exchange, providing customers with additional avenues to express their views on sports and other events,” stated the New York-based firm.
While Aristotle might not be a household name in wagering and prediction circles, it backs PredictIt, a familiar platform for enthusiasts of political event contracts. PredictIt gained fame by providing derivatives on elections. Financial terms surrounding the acquisition remain undisclosed.
Underdog CEO Highlights Sports Focus in Prediction Markets
As the prediction markets sector faces legal challenges and mounting political scrutiny due to sports event contracts, Underdog’s CEO and co-founder Jeremy Levine may have sparked some controversy by suggesting that the Aristotle acquisition is largely aimed at enhancing the company’s sports prediction market capabilities.
“We are only beginning to explore the potential of prediction markets, particularly for sports enthusiasts,” he noted in the press release. “We will leverage this opportunity to maintain our commitment to innovation and customer experience. Ultimately, prediction markets are fundamentally centered around sports, and no one knows how to connect with sports fans or develop products for them quite like Underdog.”
Notably, the company’s initiative to dive into sports prediction markets has been well-documented. In collaboration with Crypto.com, Underdog debuted its prediction market offering last September, marking it as the first licensed daily fantasy sports (DFS) or sportsbook operator to undertake such a venture.
This initiative led to the company forfeiting its DFS license in Arizona and withdrawing from the Missouri sports betting market.
Strategic Timing for the Underdog/Aristotle Partnership
Although the Aristotle acquisition aligns with Underdog’s ambitions to delve deeper into sports event contracts, the timing of the announcement may be met with skepticism, as it followed reports of the buyer laying off over 20% of its workforce.
The firm indicated that artificial intelligence (AI) and predictions markets were contributing factors to this workforce reduction. This news came roughly a year after Underdog’s private valuation soared to $1.23 billion.
Neither Underdog nor Aristotle disclosed whether any employees from Aristotle would transition to the acquirer. However, it is evident that this agreement seeks to expand the buyer’s sports derivatives platform internally.
“Underdog’s exchange will provide customers access to sports event contracts and more. Currently, Underdog connects users to prediction markets as an intermediary for other exchanges, while the company plans to broaden its prediction offerings through its own exchange,” according to the announcement.