Underdog, one of the fastest-growing sports companies in the United States, has partnered with Crypto.com to introduce federally compliant sports prediction markets through the Underdog app.
The collaboration gives millions of sports fans a secure, legal way to predict outcomes of their favorite games across major leagues, including the National Football League (NFL), National Basketball Association (NBA), Major League Baseball (MLB), and college football.
Sports prediction markets differ from traditional sports betting, where bookmakers set the odds in advance. Instead, they let participants trade contracts linked to event outcomes, with prices and implied odds constantly adjusting based on trading activity and the overall sentiment of the market.
Underdog and Crypto.com usher in a new chapter for sports prediction markets
Crypto.com | Derivatives North America (CDNA), a U.S. Commodity Futures Trading Commission (CFTC)-registered exchange, will power the contracts, while Underdog provides the technology and app integration.
This setup enables customers to trade contracts in real time as game odds shift, offering an engaging, market-driven way to express opinions on live sports.
“Prediction markets are one of the most exciting developments we’ve seen in a long time,” Jeremy Levine, founder and CEO of Underdog, 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.”
With this launch, Underdog becomes the only U.S. operator to combine fantasy sports, licensed sportsbook services, and federally compliant prediction markets in a single platform.
The company, already holding gaming licenses in multiple states, has emphasized that its established responsible gaming protections will extend to prediction market users as well.
The move could influence the rapidly growing U.S. esports betting space, where both Underdog and Crypto.com are continuing to expand their presence. By showing how sports prediction markets can work within a regulated and tech-driven framework, the two companies may open the door for similar innovations in competitive gaming, starting with top esports titles like CS2 and League of Legends.
