Crypto.com and Underdog Launch US Sports Prediction Markets

The rapidly expanding fantasy and sports gaming company Underdog has teamed up with Crypto.com Derivatives North America to introduce sports prediction markets across 16 states in the US. This initiative will focus on states where legal sports betting has not yet been implemented, such as California and Texas. Underdog will be the first operator to offer these innovative prediction markets, providing a federally compliant platform through the Underdog app, enabling millions of users to predict the outcomes of their favorite sports events. "Prediction markets represent one of the most thrilling advancements we've seen recently," said Jeremy Levine, founder and CEO of Underdog. He emphasized that while the concept is still evolving, its future is clearly centered on sports, and Underdog is poised to lead the way in that arena. Once launched, sports fans will have the opportunity to trade on outcomes from major leagues like the NFL, NBA, MLB, and college football. Prices will be updated in real-time, allowing users to respond instantly and express their opinions on every play through the licensed gaming operator. Travis McGhee, Managing Director and Global Head of Capital Markets at Crypto.com, expressed enthusiasm for the partnership, stating, "We are excited to collaborate with Underdog to enhance the national sports experience by integrating Underdog’s technology into our platform, all within a single app." Crypto.com was the pioneer in offering sports events contracts, and this partnership aims to broaden access to innovative offerings from CDNA. The prediction market initiative from Crypto.com and Underdog joins the ranks of platforms like Polymarket, Kalshi, and Robinhood, which allow traders to buy and sell sports outcomes, with market-driven odds rather than those set by bookmakers. However, the legal status of these prediction markets is still under review by the CFTC and federal courts, as they assess if such markets constitute gambling, infringe upon state regulations, or violate the Indian Gaming Regulatory Act. Recently, the CFTC sought to dismiss an appeal regarding Kalshi after a federal judge determined that the agency exceeded its authority in attempting to restrict trading on the crypto predictions platform. Disclaimer: The Block operates independently, delivering news and data. As of November 2023, Foresight Ventures is a majority investor in The Block. They also invest in various companies within the crypto sector. Meanwhile, Bitget serves as an anchor LP for Foresight Ventures. The Block remains committed to providing impartial and timely insights into the crypto industry.