Crypto.com and Underdog Shake Up Sports Prediction Markets in 16 States

The sports betting industry never stays still for long, and this year’s latest twist comes from a new partnership between Crypto.com and Underdog Sports. Together, they’re introducing sports prediction markets to 16 states, offering fans a new way to put their sports instincts to the test. It’s not quite betting, it’s not quite trading—it’s something in between.

This move signals how quickly prediction markets are carving out a lane of their own, especially in states where sports betting remains off-limits. With the NFL season kicking into gear, the timing could not be better.

What Exactly Are Sports Prediction Markets?

If you’ve never dabbled in prediction markets before, think of them like stock trading, but instead of buying shares in Apple or Tesla, you’re buying contracts based on whether an event will happen in sports.

For example, you might trade on whether the Cowboys will win their next game. The odds don’t come from a bookmaker but from how other users are buying and selling. Prices shift in real time depending on market movement.

It’s a new way to engage with games that blends the thrill of betting with the dynamics of trading. Traders aren’t just taking on the social sportsbooks; they’re taking on each other.

Why This Partnership Stands Out

There are already big names circling the prediction market space. Platforms like Robinhood, Kalshi, and Polymarket are active, and FanDuel recently partnered with the CME Group to explore financial event contracts. DraftKings CEO Jason Robins has also hinted at his company’s interest.

So why does this Crypto.com and Underdog collaboration feel different?

Underdog is the first sports gaming operator to directly offer prediction trades, and they’re doing it with a partner already registered with the CFTC (Commodity Futures Trading Commission). That makes the offering federally compliant out of the gate, giving them a head start in a market that’s still finding its footing.

The 16-State Strategy

Legal sports betting is still absent in several major states, including California and Texas. Florida is tied up in tribal exclusivity battles, with the Seminole Tribe holding a near monopoly through Hard Rock.

These states represent huge untapped audiences. Prediction markets give fans in those areas a legal and accessible way to get closer to the action without having to wait for lawmakers or regulators to catch up.

For Crypto.com and Underdog, that’s a golden opportunity. By focusing their launch in states where traditional sportsbooks can’t operate, they’re effectively planting their flag in territory others can’t reach.

What It Means for Sports Fans

The selling point here is simple: more ways to engage with your favorite teams. Whether it’s NFL Sundays, college football betting Saturdays, or the grind of the MLB season, fans now have a platform to trade their opinions instantly.

The contracts cover all major leagues—NFL, NBA, MLB, college football, and more—with live prices updating in real time. That means if you think the market is underestimating your team’s chances, you can buy in and potentially profit when the crowd shifts in your favor.

Underdog’s CEO Jeremy Levine summed it up perfectly: “The future of prediction markets is going to be about sports—and no one does sports better than Underdog.”

The Crypto.com Angle

Crypto.com has been pushing hard to establish itself as a household name in both finance and sports. From arena naming rights to big advertising pushes, the company has shown it’s serious about reaching mainstream audiences.

By partnering with Underdog, Crypto.com brings its Derivatives North America exchange (CDNA) into the spotlight. CDNA is already CFTC-registered, and this collaboration lets its contracts live on Underdog’s user-friendly platform.

Travis McGhee, Crypto.com’s managing director and global head of capital markets, emphasized the significance of this move: “We were the first to offer sports events contracts, and our technology partnership with Underdog will provide more access to CDNA’s innovative offerings.”

Underdog: A Seamless All-in-One App

One of the standout features of this launch is how it fits within Underdog’s existing platform. Unlike competitors that focus only on one vertical, Underdog now offers fantasy sports, sportsbook betting (in states where it’s legal), and prediction markets—all in one app.

That’s a big win for users who don’t want to juggle multiple apps or accounts. It’s also a statement of intent from Underdog, which has prided itself on building its own proprietary technology rather than relying on third-party providers.

The message is clear: Underdog wants to be the one-stop shop for American sports fans looking for fun, approachable gaming experiences.

Responsible Gaming in Focus

Prediction markets may feel like the wild west right now. Still, Underdog is stressing that it will apply the same responsible gaming principles it uses across its fantasy and sportsbook products. That includes strong customer protections, compliance measures, and safeguards against problem gambling.

For a sector that’s likely to attract regulatory attention sooner rather than later, taking a proactive approach to customer care could be critical for long-term success.

The Bigger Picture

Prediction markets are no longer just a niche experiment. Analysts estimate the sector could generate around $555 million in 2025 alone. By comparison, the legal online sports betting market brought in about $16 billion in 2024.

While prediction markets are still small in scale, their growth trajectory is undeniable.

The question looming over all of this is regulation. The CFTC and federal courts are still trying to determine whether prediction markets count as gambling and whether they infringe on state regulatory rights or tribal sovereignty. For now, platforms are racing to secure customers before the rules are firmly written.