Underdog enters US prediction market with Crypto.com
Sports fans in the US will be able to trade events contracts on the Underdog app following partnership with Crypto.com
Key Points
- Fantasy sports operator Underdog has teamed up with Crypto.com to trade sport events contracts in the US
- Federally compliant structure allows nationwide trading of sports predictions, but it remains a gray area…
Sports-based operator Underdog will be adding predictions to its list of verticals alongside its sportsbook and daily fantasy sports game.
The move has been facilitated by a partnership with Crypto.com, a cryptocurrency exchange company that offers CFTC registered contracts on outcomes of specific events.
This deal will focus on offering prediction contracts centered around sporting events, allowing US sports fans to express and trade opinions through the Underdog app.
The move nearly mirrors FanDuel’s step into the predictions market, though FanDuel is so far avoiding sports contracts, instead concentrating on finance and economics.
The similarity between trading sports events contracts and sports betting has been raised by critics of the practice – currently, sports betting is legal in 39 US states.
This new enterprise is promoted as “federally compliant,” meaning it could be available across all 50 states.
Underdog Founder and CEO Jeremy Levine commented: “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.”
Good to know: Crypto.com started offering sports-events contracts towards the end of December 2023 – in February, the CFTC sought to establish how the company’s Super Bowl contracts were compliant with regulatory requirements
This new project will expressly open up opportunities for Underdog users to trade on the NFL, college football, NBA and MLB, though according to the launch statement, this list is not comprehensive.
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.”
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