Crypto.com and Underdog to bring sports prediction markets to 16 states
Cryptocurrency exchange Crypto.com has partnered with fantasy sports operator Underdog to launch sports prediction markets in 16 states, including some where sports betting is not legal, according to CNBC.
Underdog will become the first sports gambling company to offer prediction markets, a product that combines financial trading and sports betting. Instead of traditional odds set by a bookmaker, users buy and sell contracts on the outcomes of sporting events, with prices fluctuating according to market activity.
Underdog Founder and Chief Executive Jeremy Levine told CNBC, “Prediction markets are one of the most exciting developments we’ve seen in a long time. 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.”
The contracts will be provided by Crypto.com Derivatives North America, which is already registered with the Commodity Futures Trading Commission. They will be hosted on Underdog’s platform and powered by its technology.
Crypto.com managing director and global head of capital markets Travis McGhee 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.”
The model is already attracting attention. Citizens gaming analyst Jordan Bender noted that the sector could generate US$555 million this year alone.
Last month, Robinhood also launched its own prediction markets through a partnership with Kalshi ahead of the NFL season.
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Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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