Fantasy Sports Firm Underdog Acquires Derivatives Exchange

Fantasy sports company Underdog acquired a federally regulated derivatives exchange and clearinghouse from Aristotle Inc., the company that runs the PredictIt political predictions market.

The deal will allow Underdog to operate one of the handful of derivatives exchanges able to directly list and clear sports contracts in a rapidly growing sector of finance. In addition to sports, Underdog plans to list prediction markets on cultural events. Terms of the transaction weren’t disclosed; Aristotle will retain control of the PredictIt exchange.

Underdog launched prediction markets trading in September through a partnership with Crypto.com, another exchange regulated by the Commodity ...