TLDR Underdog acquired Aristotle Exchange, gaining a CFTC-regulated exchange and clearinghouse The deal lets Underdog list and manage event contracts directly, without third-party partners Underdog previously exited sports betting, shutting down in North Carolina and pulling out of Missouri The company laid off over 125 employees (20%+ of staff) as part of its strategic shift PredictIt was not part of the acquisition and will continue operating as normal
Underdog has acquired Aristotle Exchange, a platform regulated by the Commodity Futures Trading Commission. The deal gives Underdog direct control of a licensed derivatives exchange and clearinghouse.
Before this acquisition, Underdog offered sports event contracts through a partnership with Crypto.com’s exchange. Owning its own licensed platform means the company can now list and manage contracts directly.
Underdog CEO Jeremy Levine said the company sees big potential in sports-focused prediction markets. “We’re in the early innings of what prediction markets can be, especially for sports fans,” he said.
The acquisition is part of a wider shift in direction for the company. Underdog has been moving away from traditional sports betting over the past several months.
In December 2025, Underdog shut down its sports betting platform in North Carolina. It also pulled its sportsbook application in Missouri, fully exiting the sports betting market.
The company has also been changing its daily fantasy sports business. Its Pick ’em contests, which were played against the house, have been pulled from several states and now run in just 15 markets.
In states like California and Arizona, where regulators challenged Pick ’em, Underdog now offers peer-to-peer options instead.
At the end of February, Underdog laid off around 125 employees, more than 20% of its total staff. Levine linked the cuts directly to the company’s move from a state-by-state model to a national prediction market platform.