Crypto.com and Underdog Partners To Launch Sports Prediction Markets Across 16 U.S. States

Fast-growing fantasy sports platform Underdog has partnered with Crypto.com to introduce sports prediction markets in 16 states, including major non-betting markets like California and Texas.

The move positions Underdog as the first sports gaming operator to integrate federally compliant prediction markets directly into its app. Through this feature, users will be able to trade on outcomes for games across the NFL, NBA, MLB, and college football, with real-time price updates reflecting shifting odds.

Jeremy Levine, the founder and CEO of Underdog expressed his optimism of the collaboration, saying

“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.”

Crypto.com executives echoed the sentiment, highlighting how the collaboration merges event contracts technology with Underdog’s reach in the sports community.

“We were the first to offer sports events contracts, and our partnership with Underdog expands access to CDNA’s innovative offerings — all within one app."

Competing in a Fast-Evolving Market

The launch puts Underdog and Crypto.com in direct competition with other prediction market operators such as Polymarket, Kalshi, and Robinhood, all of which are seeking to capture demand for sports-focused trading products.

Unlike traditional sportsbooks, these markets allow users to buy and sell event contracts, with prices set by market activity rather than a bookmaker.

Still, the regulatory landscape remains unsettled. Both the CFTC and U.S. courts are actively debating whether sports prediction markets should be classified as gambling — and whether they may infringe on state-level betting authority or violate the Indian Gaming Regulatory Act.

Earlier this year, the CFTC attempted to block Kalshi’s sports contracts but faced a setback after a federal judge ruled the agency had overreached.

Why It Matters

The partnership highlights how prediction markets are becoming a bridge between sports, crypto, and regulated derivatives trading, offering a federally compliant alternative in regions where sports betting remains off-limits.

With millions of U.S. fans in states like California and Texas shut out of traditional sportsbooks, the model could see rapid adoption — while also drawing further scrutiny from regulators.