Fast-growing sports gaming platform Underdog has teamed up with Crypto.com Derivatives North America (CDNA) to launch sports prediction markets in 16 states, focusing on regions where legal sports betting has not yet been adopted, including California and Texas.
With this, Underdog becomes the first sports gaming operator to enter the rapidly growing prediction market space, a mix of financial trading and sports betting where odds are determined by market movements rather than a bookmaker.
Prediction Markets Meet Sports
Prediction markets allow users to buy and sell the outcomes of sporting events, with prices changing in real time. Fans will be able to trade on major leagues such as the NFL, NBA, MLB, and college football, reacting instantly to developments on the field.
According to Crypto.com, this provides millions of people a federally compliant way to predict the results of their favorite sports events through the Underdog app.
“Prediction markets are one of the most exciting developments we’ve seen in a long time,” Underdog founder and CEO Jeremy Levine said. “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.”
Travis McGhee, managing director and global head of capital markets at Crypto.com, added, “We were the first to offer sports events contracts, and our technology partnership with Underdog will provide more access to CDNA’s innovative offerings. 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.”
Legal Uncertainty and Market Potential
Prediction markets face legal questions. The Commodities and Futures Trading Commission (CFTC) and federal courts are still deciding whether they count as gambling or violate state authority or the Indian Gaming Regulatory Act. Traditional sportsbooks cannot operate in some large states, and tribal casinos have fought to protect their legal monopolies.
Despite this, analysts see strong potential. Jordan Bender, a Citizens gaming analyst, estimated the sports prediction market could generate $555 million this year, compared with the $16 billion legal online sports betting market in 2024.
The partnership puts Crypto.com and Underdog alongside platforms like Polymarket, Kalshi, and Robinhood, marking a shift in how sports fans engage with games while providing a new avenue for trading sports outcomes.
Also Read: Ex-Polymarket, Kalshi Team Raises $15M for New Prediction Platform
