Underdog and Crypto.com Launch Sports Prediction Markets

Underdog, a U.S.-based sports gaming platform, and cryptocurrency exchange Crypto.com have announced plans to introduce sports prediction markets in the United States. The collaboration will allow users to trade contracts on the outcomes of major sporting events, spanning the NFL, NBA, MLB, college football, and other leagues.

The move signals a new phase in the evolution of sports wagering, which has traditionally been dominated by sportsbooks and fantasy sports platforms. Prediction markets, a method where participants essentially “trade” their forecasts on specific events, have gained attention in recent years but remain controversial. Some industry observers have drawn parallels between sports events contracts and traditional sports betting, raising questions about regulatory oversight and consumer protections.

Jeremy Levine, Underdog’s founder and CEO, framed the launch as a significant development for the sector. “Prediction markets are one of the most exciting developments we’ve seen in a long time,” 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.” Unlike FanDuel, which is exploring prediction markets as part of a broader portfolio, Underdog is focusing exclusively on sports event contracts.

Underdog already holds several U.S. licenses for sportsbook and fantasy sports offerings, though its regulatory status for prediction market activities remains less certain. Users of the platform will be able to place trades based on their assessments of sports outcomes, effectively monetizing their predictions across multiple leagues.

Crypto.com’s involvement comes through its CFTC-registered exchange and clearinghouse, an affiliate of the larger crypto platform. Travis McGhee, Crypto.com’s Managing Director and Global Head of Capital Markets, described the partnership as a way to broaden access to innovative sports trading products. “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,” McGhee said. “We were the first to offer sports events contracts, and our technology partnership with Underdog will provide more access to CDNA’s innovative offerings.”

Prediction markets are one of the most exciting developments we’ve seen in a long time… the future of prediction markets is going to be about sports – and no one does sports better than Underdog.

The Future

The launch reflects a growing convergence between traditional sports betting and financial-style prediction markets, raising both opportunities and regulatory questions. While proponents argue that prediction markets offer a new layer of engagement for fans, critics caution that the similarities to gambling could pose risks, particularly in states where sports betting laws remain restrictive.

As the market develops, the industry will be closely watching how regulators respond and whether consumer adoption aligns with the growing enthusiasm from companies like Underdog and Crypto.com.