Underdog, the sports gaming and prediction market platform, announced the launch of its federally approved prediction market exchange.
Key Takeaways
- The company’s CEO said only Kalshi and Robinhood have generated more notional trading volume since September 2025.
- Underdog exited regulated sportsbook operations to focus on prediction markets.
- The CEO said to prepare for a “huge leap” during the NFL season.
Underdog had previously offered markets to customers through partnerships with Kalshi and crypto.com. Operating its own exchange instead of relying on third-party partners will allow Underdog to retain a larger share of its revenue.
“We started this company with a clear belief - there is so much more to be built for sports fans in America,” said Jeremy Levine, CEO and cofounder of Underdog. “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 became the first sports gaming operator to offer prediction markets to customers through a partnership with crypto.com, which went into effect last September.
The company later acquired Aristotle Exchange DCM, Inc. and Aristotle Exchange DCO, Inc. in March 2026, providing it with CFTC-registered designated contract market (DCM) and derivatives clearing organizations (DCO).
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Rapid growth
Underdog is only behind Kalshi and Robinhood in total notional trading volume since September 2025, Levine told CNBC last week.
“Now that we’re launching on our exchange, what’s going to come over in the next few months as we head into NFL season, it’s going to be a huge leap and a lot more we can offer to our customers,” Levine said.
Levine also noted the World Cup was “amazing” for his platform. That sentiment was shared by other prediction operators, who generated a combined 27% share of the total sports betting market during the tournament, according to estimates by H2 Gambling Capital.
“It’s so fun to see soccer really get going in America, capture all this attention, and I have friends coming out of the woodwork,” Levine said.
All-in on prediction markets
Underdog now offers daily fantasy sports contests alongside its CFTC-regulated prediction market exchange. It had offered legal sports betting in North Carolina since early 2024 but shut down its operations last December and now finds itself squarely in the prediction market news cycle.
Similarly, the platform withdrew its Missouri mobile sports betting license application in late November, just before the state’s Dec. 1 market launch. Underdog had secured market access partnerships with the Kansas City Royals and the St. Louis Blues but opted to focus on prediction markets instead.
