Underdog Acquires Aristotle Exchange to Bring Prediction Markets In-House

Underdog gains direct regulatory control over U.S. event-contract markets by acquiring Aristotle Exchange DCM and DCO, enabling in-house listing and clearing.

Rich by Coin

2026-03-09

Underdog has acquired Aristotle Exchange DCM, Inc. and Aristotle Exchange DCO, Inc., entities approved by the CFTC in September 2025 as a Designated Contract Market and Derivatives Clearing Organization, respectively, enabling the fantasy sports operator to list and clear event-contract markets in the United States directly. The sale, which involved Aristotle—the parent company behind PredictIt—marks a move to internalize prediction-market operations that had previously depended on partnerships and external venues. PredictIt operates under a 2014 CFTC no-action letter that allowed it to function as an academic project, with recent relaxations expanding trader limits; the platform remains distinct from standard derivatives exchanges.

Underdog previously entered the space via a partnership with Crypto.com’s CDNA, listing sports event contracts through its app, and now aims to bring these markets in-house through its own exchange infrastructure. The deal is presented as part of a broader strategy of acquiring existing CFTC-approved exchanges to accelerate entry into the prediction-market sector as interest grows.