Underdog CEO Levine Sees Prediction Markets Driving Activity Surge

Underdog co-founder and CEO Jeremy Levine says the company’s prediction market platform is driving increased activity and signs of increased customer handle. Underdog CEO Jeremy Levine says prediction markets are driving increased handle on the platform and combos are soaring. (Image: Underdog) Speaking at the recent Bank of America Gaming & Lodging Conference, Levine pointed out that Underdog, which was the first sports-native company to enter the prediction market arena, is seeing signs that its event contracts platform is a catalyst for more customer activity and increased spending. “When we could only offer a sliver of the product, our customer handle was, doing the math in my head right now, well, a fourth what sportsbook’s customer handle is,” he said at the conference. “And prediction markets I think have even been higher because you get the trading dynamic and we’re seeing the climb happen rapidly in real time. So that’s super exciting.” Founded in 2020 as a daily fantasy sports (DFS) company, Underdog entered the prediction market space in September 2025 through a partnership with Crypto.com. The company rolled out a wholly-owned prediction market exchange in July, allowing it to exert more control over its event contract economics. Underdog Geographic Focus May Be Helping At the Bank of America conference, Levine said Underdog has been on a “real journey” since 2025, noting that prediction markets disrupted sports betting, prompting the company to focus on its event contracts offering, particularly in states where sports betting isn’t legal — previously points of emphasis for the operator. Levine mentioned California, Texas and Georgia. On a related note, Underdog recently surrendered DFS licenses in Maryland, Massachusetts, Michigan, Mississippi, New Jersey, Ohio, and Pennsylvania because regulators in those jurisdictions believe that an operator functioning as a prediction market doesn’t jibe with holding DFS permits. Underdog is currently suing Massachusetts, New Mexico, Ohio, Wisconsin, and Washington in an effort to prevent those states’ gaming laws from being applied to its prediction market. Levine acknowledged that the decision to drop its DFS licenses in those seven states was tough, but it was a “very obvious one” rooted in “dollars and cents.” He’s hopeful that with added legal clarity, Underdog will be able to offer its full product suite in all 50 states. “Now we can offer really 100% of the experience in nearly 100% of the states, and hopefully with Supreme Court clarity, we get to 100% of the states,” he said at the conference. Combos Supporting Underdog Prediction Market Growth With football season here, it’s widely expected that combos, or parlays, will be growth drivers for prediction markets. Prior to the season, there was already evidence that Underdog was rapidly ascending that leaderboard. More than half of the activity on Underdog Exchange (UDX) is attributable to multi-leg bets, Levine said at the Bank of America event. As the CEO points out, the company has advantages in the combo arena because it’s been offering variations of those wagers since its inception. Underdog’s original DFS product required customers to select multiple players based on performance statistics, amounting to a player proposition parlay. “We have been effectively a parlay business for the life of our business,” said Levine. “The easy part for us is the parlay experience.” The post Underdog CEO Levine Sees Prediction Markets Driving Activity Surge appeared first on Casino.org.