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Underdog has launched its own federally licensed prediction market exchange, bringing trading in sports, culture, and other event contracts onto infrastructure owned and operated by the company.
The exchange, licensed by the U.S. Commodity Futures Trading Commission (CFTC), is integrated into the existing Underdog app and allows customers to trade prediction markets directly through the platform.
The launch marks a shift for Underdog, which previously offered prediction markets through third-party exchanges including Crypto.com and Kalshi.
The move follows the company’s acquisition in March of a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), enabling it to operate its own federally regulated exchange.
Underdog is also a registered Futures Commission Merchant (FCM), making it the first sports company to hold the full prediction market licensing stack comprising DCM, DCO and FCM registrations.
“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 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,” Jeremy Levine, Chief Executive Officer and Co-Founder of Underdog, said.
The company said the exchange is set to provide customers with more ways to express their views on sports, culture and other events within the Underdog app.
“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 said.
Underdog describes itself as the first sports gaming operator to offer access to sports prediction markets, launching an in-app feature last fall that initially served as an intermediary for third-party exchanges.
The launch comes as prediction market operators increasingly bring trading infrastructure in-house to gain greater control over their platforms.
Underdog’s prediction market has generated nearly $6.5 billion in notional trading volume since last September, ranking it above some well-known U.S. competitors.
The company’s prediction market is unavailable in 13 U.S. jurisdictions, including Nevada and Washington, D.C.