Fantasy and sports betting operator Underdog has partnered with trading platform Crypto.com to enter prediction markets.
The contracts will be offered on Underdog’s platform in 16 states, the majority of which have not legalized traditional sports betting.
Key Takeaways
- Underdog now has fantasy contests, sports betting odds, and prediction markets
- CFTC-licensed prediction platforms can offer sports contracts in every state
- Sports contracts are expected to generate $555 million this year
Crypto.com is a Commodities Futures Trading Commission-licensed platform, meaning that it is licensed to operate in all American states. Underdog is only licensed as a traditional sports betting operator in North Carolina, but it offers fantasy sports contests in 40 states.
The groundbreaking partnership symbolizes the merging of existing providers with prediction platforms, gaming’s newcomers who have thrown a wrench into the composition of state and national markets.
“Prediction markets are one of the most exciting developments we’ve seen in a long time,” said Underdog founder and CEO, Jeremy Levine. “While still new and evolving, one thing is clear – the future of prediction markets is going to be about sports – and no one does sports better than Underdog.”
Underdog traditionally allows its customers to compile “Higher” or “Lower” picks related to projected player stats in a variety of sports. These picks are added to slips and effectively act as parlays.
Customers can also draft lineups or wager on head-to-head prop matchups between different athletes.
That’s different from prediction platforms, who sell contracts related to outcomes of sports events and whose prices are directly influenced by public demand instead of “the house.”
An up-and-coming market
Rather than living on their own platform, sports bettors will be able to access Crypto.com’s event contracts right from the Underdog app.
Underdog is now the only company with fantasy contests, traditional sports betting odds, and prediction markets in the same app.
“We are thrilled to partner with Underdog to enhance the sports experience for customers nationwide with the ability to now trade using Underdog’s technology – all in one app,” said Travis McGhee, Managing Director, Global Head of Capital Markets at Crypto.com. “We were the first to offer sports events contracts, and our technology partnership with Underdog will provide more access to CDNA’s innovative offerings.”
Crypto.com’s CFTC-licensed status means that it is eligible to operate in every state, although several state regulators have sent cease-and-desist orders to different prediction platforms.
Citizens gaming analyst Jordan Bender estimated in April that sports event contracts could generate $555 million this year. That would make it about 3.5 percent of the size of traditional sports betting, which generated about $16 billion in 2024, he said.
Sports betting, prediction platforms merging
Crypto.com isn’t the only prediction platform that has unified with an existing sports betting operator. FanDuel, which had eyed prediction leader Kalshi as a possible partner, announced in August that it would partner with CME Group to offer financial events contracts.
Officials at other sports betting companies have also tapped prediction platforms as an up-and-coming sector within the sports gaming industry.
