Underdog Acquires CFTC-Registered Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO)
Underdog, the fastest-growing private sports company in the U.S., announced the purchase of Aristotle Exchange DCM Inc. and Aristotle Exchange DCO Inc., which are a Commodity Futures Trading Commission (CFTC) registered Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO), respectively. The acquisition enables Underdog to offer its own federally-compliant prediction market exchange, giving customers even more ways to express their opinions on sports and beyond. Underdog was the first sports gaming operator to offer access to sports prediction markets in its app last September.
“We look forward to working with the CFTC to offer an exchange that brings even more options to enjoy sports to our customers. We’re in the early innings of what prediction markets can be, especially for sports fans. We’ll use this opportunity to bring the same relentless focus on innovation and experience that we’ve always brought to our customers. 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,” said Jeremy Levine, CEO and Co-Founder of Underdog.
Underdog’s exchange will allow customers to access sports event contracts and more. Underdog currently offers access to prediction markets as an intermediary to other exchanges, and the company will continue to expand its prediction offerings under its own exchange.
Aristotle’s financial advisor is Lazard and its legal advisor is Willkie Farr & Gallagher LLP.
