Underdog says its prediction market business is increasing customer activity as it expands the range of event contracts available through its platform.
Co-founder and CEO Jeremy Levine told the Bank of America Gaming and Lodging Conference that customer handle had risen rapidly as Underdog expanded the products available through event contracts.
Levine said handle under the company’s earlier, more restricted offering was approximately one-quarter of the level generated by sportsbook customers. He said prediction markets had subsequently produced higher activity because customers could trade positions rather than place only conventional wagers.
Underdog did not disclose absolute trading volume or provide a period against which the increase was measured.
More than half of activity on Underdog Exchange now comes from multi-leg contracts, according to Levine. These combine several outcomes within one transaction and operate in a similar way to sportsbook parlays.
“We have been effectively a parlay business for the life of our business,” he said.
Underdog began offering prediction markets through Crypto.com in September 2025. It launched its own Commodity Futures Trading Commission-licensed exchange in July after acquiring a designated contract market and derivatives clearing organisation.
The company has concentrated on states including California, Texas and Georgia, where online sports betting is unavailable. It has surrendered fantasy sports licences in seven states amid objections from regulators and is pursuing legal action against authorities in Massachusetts, New Mexico, Ohio, Wisconsin and Washington over whether state gambling laws apply to its federally regulated contracts.
London-listed IG Group agreed in July to acquire Underdog for up to US$1.3bn, subject to regulatory approvals. IG said Underdog generated net revenue of approximately $466m in the 12 months to 30 June, an increase of 21%, and had become the third-largest US prediction market venue by its internal measure of regulated notional volume. Completion is expected in late 2026 or early 2027.
Tags: Underdog Sports, Sports Betting, Sportsbook, Jeramy Levine, Prediction Markets
