Jul 21, 2026
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Read Article Underdog prediction market: Everything you need to know
Updated: | First published:
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Written by Damien Souness, Chief Experience Officer
Reviewed by Nick Slade
Underdog has launched its own federally licensed prediction market exchange, allowing users to trade sports, culture and other event contracts directly within the Underdog app.
Underdog has officially launched its prediction market exchange, marking a major milestone for the sports gaming company as it expands beyond fantasy sports and sportsbook-style products.
The new Underdog prediction market is federally licensed by the Commodity Futures Trading Commission (CFTC) and is available directly within the existing Underdog app, giving customers another way to make predictions on sports and other real-world events.
What is the Underdog prediction market?
The Underdog prediction market is a federally regulated exchange where users can buy and sell contracts based on the outcome of future events.
Initially focused on sports, the exchange will gradually expand to offer markets on culture and other topics.
Unlike traditional sportsbooks, prediction markets allow users to trade event contracts on an exchange rather than place wagers against a bookmaker.
Why is this launch significant?
Underdog previously offered access to prediction markets through third-party exchanges, including Kalshi and Crypto.com.
Now, the company operates its own exchange after acquiring the complete set of federal licenses needed to run a prediction market.
Underdog acquired a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) in March 2026 and is also registered as a Futures Commission Merchant (FCM).
According to the company, this makes Underdog the first sports-focused operator to hold all the necessary licenses for running a prediction market.
What the Underdog CEO and co-founder said
Underdog CEO and co-founder Jeremy Levine said prediction markets are a natural extension of the company's focus on sports fans.
"We started this company with a clear belief—there is so much more to be built for sports fans in America."
Levine added that while the sports gaming industry has evolved from fantasy sports to regulated sports betting and now prediction markets, there is still significant room for innovation.
"Prediction markets are largely about sports, and Underdog is the best at sports."
How the Underdog prediction market works
The prediction market is integrated directly into the Underdog app, allowing existing customers to access contracts without leaving the platform.
Users can trade contracts tied to sporting events and, over time, other real-world outcomes as additional markets become available.
Underdog continues to expand
Founded in 2020, Underdog first built its reputation through fantasy sports before expanding into sports prediction markets.
The launch of its own exchange gives the company full control over its prediction market offering and positions it alongside other federally regulated exchanges operating in the United States.
For sports fans, the Underdog prediction market represents another option for expressing opinions on sporting outcomes through federally regulated event contracts rather than traditional sports betting.
To give you the most accurate and helpful information, this article has been reviewed and edited by Nick Slade through our fact-checking process.
Damien Souness is Chief Experience Officer at Cipher Sports Technology Group, helping lead sports media brands such as Dimers. He specializes in creating trustworthy and data-driven content for sports fans, with experience working for globally recognized sports and media organizations.
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