Underdog Acquires Aristotle Exchange to Launch Event Contracts on Its Own

Underdog, an up-and-coming US sports business, confirmed that it has acquired the Aristotle Exchange DCM and Aristotle Exchange DCO. The first of these two businesses is a designated contract market (DCM), while the other is a derivatives clearing organization (DCO).

Underdog to Offer Event Contracts Under Its Own Exchange

According to the announcement, the acquisition of the Aristotle Exchange will allow Underdog to foray into the burgeoning prediction markets sector and capitalize on the significant opportunities offered by the event contracts space.

By acquiring the Aristotle-branded DCM and DCO, both of which are registered with the Commodity Futures Trading Commission (CFTC), Underdog will be able to offer event contracts in a compliant way, providing customers with new ways to “express their opinions on sports and beyond.”

For context, Underdog was the first sportsbook to offer access to sports predictions via its app. The company started serving as an intermediary to other prediction markets platform last September.  

After acquiring Aristotle, Underdog will allow its players to make predictions on a variety of sports games and other events. The company already offers access to prediction markets as an intermediary to other exchanges. However, the acquisition will allow it to expand its prediction offerings under its own exchange.

Underdog Is Ready to Harness the Power of Prediction Markets

Jeremy Levine, Underdog’s co-founder and chief executive officer, commented on the matter, expressing eagerness to work with the CFTC on offering an exchange that offers fans new ways to experience sports.

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.

Jeremy Levine, co-founder & CEO, Underdog

Levine added that prediction markets are “primarily about sports,” making a sports expert such as Underdog the perfect business to harness their power.

For context, Lazard and Willkie Farr & Gallagher served as financial and legal advisors to Aristotle, respectively.