Underdog Expands Into Event Contracts with Aristotle Exchange Acquisition
Underdog Enhances Its Presence by Acquiring Aristotle Exchange
Underdog, a rising player in the US sports market, has announced its acquisition of the Aristotle Exchange’s two entities: the Designated Contract Market (DCM) and the Derivatives Clearing Organization (DCO). This strategic move marks a significant step for Underdog as it ventures into the event contracts sector.
Launching Event Contracts Through Its Own Platform
By bringing Aristotle Exchange’s DCM and DCO under its umbrella—both registered with the Commodity Futures Trading Commission (CFTC)—Underdog will now be able to offer event contracts in full regulatory compliance. This will provide users with innovative options to express their opinions through sports and a variety of other events, broadening engagement beyond traditional methods.
Previously, Underdog pioneered integrating sports predictions via its mobile app and operated as a middleman connecting users to existing prediction market platforms. This acquisition enables Underdog to transition from intermediary services to managing its own dedicated exchange for event contracts.
Expanding Prediction Market Capabilities
With Aristotle Exchange now part of its operations, Underdog is prepared to offer customers a wider range of opportunities to predict outcomes across multiple sports and other significant events. This development enhances the company’s portfolio, allowing it to build on the prediction market services it began last year.
Leadership Vision on Prediction Market Potential
Jeremy Levine, co-founder and CEO of Underdog, shared his enthusiasm for collaborating with the CFTC to develop an exchange that offers sports fans fresh and interactive ways to engage with their favorite games. He emphasized that the potential of prediction markets is just beginning to unfold, particularly within the sports community.
“We’re in the early stages of exploring the possibilities prediction markets hold, especially for sports audiences. Our focus will remain on delivering innovative user experiences,” said Levine.
He further noted that Underdog’s expertise in sports makes it an ideal enterprise to capitalize on the evolving prediction market landscape.
Supporting Advisors and Legal Counsel
For this acquisition, Aristotle received financial guidance from Lazard, while legal support was provided by Willkie Farr & Gallagher, ensuring a well-managed and compliant transition.
