Underdog Acquires Aristotle Exchange to Expand Prediction Market Operations

Underdog had acquired to buy Aristotle Exchange DCM and Aristotle Exchange DCO in a bid to launch its own sports event contracts.

Ziv Chen

Last Updated: March 10, 2026 12:31 PM EDT • 2 minute read

Pictured: Brooklyn Nets center Nic Claxton passes the ball as we look at the partnership between Underdog and Aristotle Exchange DCM. Photo by Brad Penner-Imagn Images

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Underdog has agreed to acquire Aristotle Exchange DCM and Aristotle Exchange DCO, giving the sports betting operator the ability to list and settle its own event contracts as it expands into prediction markets. The acquisition was announced on Monday, less than two weeks after Underdog reduced its workforce by more than 20%.

The deal provides Underdog with the regulatory framework required to operate its own exchange for event contracts. Previously, the company depended on external infrastructure to offer prediction markets tied to sports outcomes.

Representatives for Underdog and Crypto.com declined to comment on whether the acquisition would affect their partnership. Owning the exchange infrastructure now allows Underdog to operate independently when listing and settling contracts.

Underdog CEO and Co-founder Jeremy Levine added that prediction market apps remain in the early stages of development for sports fans. "The reality is, prediction markets are primarily about sports and no company knows how to engage with sports fans and create products for sports fans better than Underdog," he said.

Both Aristotle entities are registered with the Commodity Futures Trading Commission (CFTC). The exchange currently powers PredictIt, a platform focused on political prediction markets rather than sports.

The acquisition also came shortly after Underdog reduced its workforce by at least 125 employees. The layoffs affected departments including fraud operations, customer support, graphics, marketing, and the company's draft-based gaming products. Levine previously said the reductions reflected a transition toward building a national prediction market platform.

Underdog Launches Prediction Markets with Crypto.com

Underdog's move follows its September partnership with Crypto.com, which launched sports prediction markets in 16 states, primarily where legal sports betting has not been adopted.

Through the partnership, Underdog was able to offer contracts on a range of US sports leagues, including the NFL, college football, NBA, and MLB.

“Prediction markets are one of the most exciting developments we’ve seen in a long time,” said Levine. “While still new and evolving, one thing is clear – the future of prediction markets is going to be about sports – and no one does sports better than Underdog.”

With sports betting operators moving to prediction markets, including DraftKings and FanDuel, analysts have speculated that they are seeking options beyond state-by-state gambling regulation. The model may enable some sites to operate without the same level of oversight as sportsbooks.

Federal regulators are still determining whether sports prediction markets should be classified as either financial trading or sports betting. The CFTC is reviewing whether such markets conflict with state sports betting laws or the Indian Gaming Regulatory Act.

Analysts also previously estimated that sports prediction markets could generate $555 million in revenue during 2025. The regulated US online sports betting market produced approximately $16.96 billion in revenue during the same year, according to the American Gaming Association.

Written by:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.