Underdog has officially introduced a federally licensed prediction market exchange, enabling trading in sports, culture, and various event contracts using company-owned infrastructure.
Licensed by the U.S. Commodity Futures Trading Commission (CFTC), this new exchange is seamlessly integrated into the existing Underdog app, allowing users to trade prediction markets directly on the platform.
This development represents a significant transition for Underdog, which previously facilitated prediction markets through third-party platforms like Crypto.com and Kalshi.
The initiative follows the company’s acquisition in March of a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), empowering it to manage its own federally regulated exchange.
Moreover, Underdog is now recognized as a registered Futures Commission Merchant (FCM), making it the first sports organization to possess the complete suite of prediction market licenses, including DCM, DCO, and FCM registrations.
Jeremy Levine, Chief Executive Officer and Co-Founder of Underdog, remarked: “We founded this business with one fundamental belief—there’s significantly more that can be developed for sports enthusiasts in America. Amidst the dramatic transformations in the U.S. market recently, from fantasy sports to legalized sports betting to prediction markets, we still identify an industry that often overlooks the needs of sports fans.”
The company claims that the exchange is designed to enhance options for consumers to engage with sports, culture, and other events within the Underdog app.
Levine further added, “With our independent exchange, we will unlock numerous opportunities for sports fans. Prediction markets focus significantly on sports, and Underdog excels in this category.”
Underdog positions itself as the first sports gaming operator with access to sports prediction markets, having launched an in-app feature last autumn that initially served as a facilitator for external exchanges.
This launch occurs at a time when many prediction market providers are increasingly bringing trading resources in-house in order to maintain enhanced control over their platforms.
Since its launch, Underdog’s prediction market has seen nearly $6.5 billion in notional trading volume since last September, placing it above several notable U.S. competitors.
However, the company’s prediction market is currently unavailable in 13 U.S. jurisdictions, including Nevada and Washington, D.C.