Underdog unveils in-house exchange following Aristotle acquisition
Brooklyn-based unicorn reveals new proprietary proposition, having relied on Kalshi and Crypto.com markets since launch last year
Underdog has unveiled its own in-house exchange to power the company’s prediction market offering, just months after snapping up Aristotle Exchange in March.
The operator, which emerged as a major DFS player before a brief sojourn into online sports betting, initially launched prediction markets in September 2025 via Crypto.com, before bolstering its offering by integrating markets from Kalshi.
Then in March, Underdog announced it had acquired Commodity Futures Trading Commission-licensed Aristotle to launch its own exchange.
The transaction saw Underdog acquire Aristotle Exchange DCM (Designated Contract Market) and Aristotle Exchange DCO (Designated Clearing Organisation) in a move which will give it full control over the prediction market product.
Underdog, which is also a registered Futures Commission Merchant (FCM), said those three facets meant it was the “first sports company with the complete prediction market licence stack”.
The company added that the launch of the proprietary exchange would allow “customers even more ways to express their opinions on sports, culture and beyond, all within the existing Underdog app”.
Following the latest announcement, CEO Jeremy Levine appeared on CNBC where a graphic displayed to viewers showed Underdog in third place based on notional trading volume flow since September 2025.
Kalshi was top with $86.5bn, followed by Robinhood on $32.5bn and Underdog with $6.49bn. Polymarket US ($6.48bn) and DraftKings ($1.2bn) were fourth and fifth, respectively.
The Underdog predictions product is live in 38 US states and DC, including those without legalised sports betting, such as Texas, California and Georgia.
In May, the former Crypto.com chief legal officer and key architect behind the Singapore-based exchange’s own prediction market product moved to Underdog.
Nick Lundgren became Underdog’s chief legal officer and said the company was “perfectly positioned” to succeed in the space.
The unicorn, which was valued at $1.2bn in 2025, made 125 redundancies earlier this year as part of its pivot to prediction markets, a product which requires less manpower.
Underdog previously pulled out of the North Carolina online sports betting market and decided against entering Missouri, despite having approval to do so, as it focused its efforts on prediction markets.
Largely about sports
Jeremy Levine, Underdog CEO, said: “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 US 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.”
Levine’s “largely about sports” reference cuts directly against the prevailing industry narrative, particularly the one pushed by Kalshi.
The US market leader has spent years arguing that prediction markets are fundamentally macro‑driven financial instruments, not sports betting derivatives.
Underdog’s acquisition of Aristotle followed DraftKings’ purchase of Railbird, another smaller, CFTC-regulated exchange, to accelerate its prediction markets plan.
DraftKings launched its in-house DKeX exchange last month, which was built on the acquired Railbird tech.