Crypto.com and Underdog are launching sports prediction markets in 16 U.S. states

￰0￱ and Underdog are launching sports prediction markets across 16 ￰1￱ where gambling on sports is still banned. They’re building a new system that dodges gaming regulators by not calling it betting. Instead, it’s a tradeable contract based on game outcomes, and yes, it’s real ￰2￱ structure is simple. Crypto.

com’s U. S.-registered derivatives arm, CDNA, will provide the ￰3￱ will run the front-end, where users actually place the trades, using its existing ￰4￱ will be no sportsbooks, no odds from a bookmaker, and no need for state betting ￰5￱ runs on pricing from market activity ￰6￱ more people buy into an outcome, the more expensive it ￰7￱ you sell at the right time, you ￰8￱ your outcome wins and the market agrees, you ￰9￱ one takes your bet, because it’s not a bet, it’s a ￰10￱ moves first while others circle the space Underdog is the first sports gaming platform to fully step into this kind of setup. It’s a market space that blends the mechanics of crypto, finance, and sports into a single tradeable ￰11￱ Jeremy Levine said on CNBC’s Worldwide Exchange that “prediction markets are one of the most exciting developments we’ve seen in a long time,” and added, “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.” Others are watching ￰12￱ like Robinhood, Kalshi, and Polymarket already offer event-based contracts tied to sports, but none have the kind of reach or existing user base that Underdog has in fantasy ￰13￱ top of that, FanDuel, which is owned by Flutter, recently announced a partnership with CME Group to offer similar financial ￰14￱ boss Jason Robins has also expressed interest on ￰15￱ makes Underdog’s deal different is the combination of timing, size, and legal ￰16￱ using CDNA, Crypto.

com’s North American derivatives platform, they’re tapping into a regulatory structure that already exists under the ￰17￱ gives them a legal pathway that most traditional sportsbooks don’t have, especially in restricted ￰18￱ map of the ￰19￱ the ￰20￱ and Texas, the two most populous states, still don’t allow legal sports betting. Florida, which ranks third in population, has its gambling system locked up by the Seminole ￰21￱ tribe has exclusive rights to run casinos and sportsbooks through its Hard Rock ￰22￱ leaves millions of potential users out of the betting market, and Underdog wants to give them something else to use. Regulators, tribes, and lawsuits can’t stop the contracts… yet This approach is likely to raise eyebrows at both the state and federal ￰23￱ Commodities and Futures Trading Commission hasn’t decided how to classify these contracts ￰24￱ are still wrestling with whether prediction markets count as ￰25￱ questions are being raised about whether they violate state control over gaming laws or infringe on tribal rights under the Indian Gaming Regulatory ￰26￱ as of now, none of that is stopping the ￰27￱ gaming analyst Jordan Bender, writing in April, said, “prediction markets are too loud to ignore.” Bender estimated the market could hit $555 million in ￰28￱ comparison, legal online sports betting raked in roughly $16 billion in 2024.

Crypto. com’s CDNA, being already registered with the CFTC, is at the center of the ￰29￱ McGhee, managing director and global head of capital markets at Crypto. com, 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.” Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.