Underdog announced that it has acquired Aristotle Exchange DCM and Aristotle Exchange DCO, two entities registered with the Commodity Futures Trading Commission as a Designated Contract Market and a Derivatives Clearing Organization. The deal enables the fantasy sports and prediction markets platform to operate its own federally compliant prediction market exchange and expand its offerings for sports fans.
The acquisition allows Underdog to move beyond acting as an intermediary for other exchanges and instead list and clear contracts through its own exchange infrastructure. By securing both the DCM and DCO registrations, the company gains the regulatory framework required to operate a full prediction market exchange capable of listing and clearing event contracts.
Underdog said its new exchange will provide access to sports event contracts and other prediction markets. The company previously introduced access to sports prediction markets within its app in September, becoming the first sports gaming operator to offer that capability to its users.
With the transaction, Underdog intends to expand its prediction market products under its own exchange while continuing to focus on building new products and experiences for sports fans.
Support: Aristotle’s financial advisor for the transaction was Lazard, and its legal advisor was Willkie Farr & Gallagher LLP.
KEY QUOTE:
“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.”
Jeremy Levine, CEO And Co-Founder Of Underdog
