Underdog debuts prediction market exchange after gaining CFTC license
Sports company Underdog has launched its own in-house federally-regulated prediction market exchange, expanding its offerings beyond fantasy sports and traditional sports wagering.
The brand’s prediction market exchange is fully owned and operated by Underdog, and by securing licensing from the Commodity Futures Trading Commission (CFTC), it will allow users to legally make predictions on sports, popular culture, and more directly through the Underdog app.
The company first entered the sports prediction market space last year, initially providing access through partnerships with third-party exchanges like Crypto.com and Kalshi.
In March this year, Underdog gained a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO).
Plus, as a registered Futures Commission Merchant (FCM), this move makes Underdog the first sports-focused company to hold the complete prediction market license structure.
The Co-Founder and Chief Executive of Underdog, Jeremy Levine, 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 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.”
