Underdog Launches Its Own Federally Licensed Prediction Market Exchange
Underdog has launched its own federally licensed prediction market exchange, allowing users to trade event contracts directly within the Underdog app.
Underdog, the fantasy sports and sports prediction market company, has launched its own federally licensed prediction market exchange, the company announced July 18, 2026.
The exchange is wholly owned and operated by Underdog and licensed by the Commodity Futures Trading Commission (CFTC). It will operate within the existing Underdog app, giving customers the ability to trade event contracts on sports, culture, and other topics directly through Underdog rather than through a third-party exchange.
Underdog first offered access to sports prediction markets last fall, acting as an intermediary partner for other CFTC-registered exchanges, including Crypto.com and Kalshi. In March 2026, the company acquired a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO).
Combined with its existing registration as a Futures Commission Merchant (FCM), the acquisitions gave Underdog the full license stack needed to list, trade, and clear event contracts on its own exchange making it, per the company, the first sports company to hold all three registrations.
"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 co-founder 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 more for sports fans. Prediction markets are largely about sports, and Underdog is the best at sports."