Jeremy Levine, CEO and co-founder of Underdog, reveals that the company’s prediction market platform is driving increased activity and showing signs of increased customer handle.
During the Bank of America Gaming & Lodging Conference, Levine highlighted that Underdog, the first sports-native company in the prediction market sector, is witnessing a surge in customer activity and spendings due to its event contracts platform.
“When we could only offer a sliver of the product, our customer handle was, doing the math in my head right now, well, a fourth what sportsbook’s customer handle is,” he said at the conference. “And prediction markets I think have even been higher because you get the trading dynamic and we’re seeing the climb happen rapidly in real time. So that’s super exciting.”
Established in 2020 as a DFS company, Underdog ventured into the prediction market space in September 2025 through a collaboration with Crypto.com. By launching its own prediction market exchange in July, the company gained more control over its event contract economics.
Underdog Geographic Focus May Be Helping
Levine further mentioned at the conference that Underdog’s strategic focus on specific geographies has propelled its growth. The disruption caused by prediction markets in the sports betting industry prompted the company to emphasize its event contracts offering, especially in states where sports betting is prohibited. Levine cited California, Texas, and Georgia as key areas of focus.
Additionally, Underdog recently relinquished its DFS licenses in several states where regulatory conflicts emerged due to its operation as a prediction market platform. The company is actively challenging gaming laws in those states to prevent restrictions on its prediction market activities.
Levine believes that despite the challenges, dropping the DFS licenses was a decisive move based on financial considerations. He remains optimistic that with legal clarity, Underdog will be able to offer its full suite of products in all 50 states.
Combos Supporting Underdog Prediction Market Growth
With the football season in full swing, combos or parlays are expected to drive growth in prediction markets. Underdog has already seen a significant uptick in multi-leg bets on its Underdog Exchange (UDX) platform. Over half of the platform’s activity is attributed to these combo wagers.
Levine emphasized that Underdog’s history of offering parlay options in its original DFS product gives it an edge in the combo betting arena. The company’s expertise in providing various wager types bodes well for its prediction market growth.