underdog and Crypto.com Collaborate to Transform Sports Prediction Markets
Introducing a New Era in Sports Gaming
underdog, a leading name in fantasy sports and gaming, has partnered with Crypto.com to roll out sports prediction markets across 16 states. This venture targets areas where conventional legal sports betting remains prohibited, creating fresh avenues for enthusiasts and traders to engage with their favorite sports.
The Evolution of Sports Prediction Markets
Jeremy Levine, CEO of Underdog, highlights prediction markets as one of the most exciting breakthroughs in recent years. Although still emerging, this sector’s future is deeply intertwined with the world of sports-a domain where underdog aims to establish itself as a trailblazer through its specialized expertise.
Understanding Sports Prediction Markets
Sports prediction markets merge concepts from financial trading with customary sports wagering. Instead of fixed odds set by bookmakers,users trade contracts based on event outcomes. prices shift dynamically according to supply and demand rather than predetermined lines or spreads.
The Competitive Landscape shaping Up
- Current Market Participants: Platforms such as Robinhood, Kalshi, and Polymarket have already launched contracts linked to various sporting events.
- Mainstream Industry Moves: FanDuel recently teamed up with CME Group to introduce financial event contracts tied directly to sport results.
- Aspiring Entrants: DraftKings’ leadership has expressed intentions toward entering this rapidly evolving market segment soon.
Tackling Regulatory Challenges Head-On
The regulatory framework governing these novel contract types remains unsettled. Federal bodies like the Commodities Futures Trading Commission (CFTC) alongside judicial systems are deliberating whether these prediction markets fall under illegal gambling statutes or infringe upon state jurisdiction or tribal sovereignty protected by laws such as the Indian Gaming Regulatory Act (IGRA).
This uncertainty is especially significant given that populous states like California and Texas-home collectively to over 80 million residents-have yet to legalize traditional sports betting fully. Meanwhile, Florida’s gambling habitat is largely controlled by the Seminole Tribe through exclusive agreements at Hard Rock casinos and sportsbooks. political resistance from tribal groups continues limiting sportsbook access within these regions.
A Strategic Advantage in Restricted Jurisdictions
The ability for platforms offering prediction market contracts to operate without direct oversight from state regulators or tribal authorities opens an attractive niche opportunity. This coudl enable companies like Underdog and Crypto.com access into vast untapped audiences eager for lawful alternatives beyond standard fantasy leagues or conventional wagers.
the Expanding Market Backed by Data Insights
“Prediction markets are becoming impossible to overlook,” stated industry analyst Jordan Bender while projecting revenues near $555 million for this sector alone in 2024.
To put this into viewpoint: nationwide legal online sports betting revenue is expected around $16 billion this year-highlighting substantial growth potential within emerging subcategories such as prediction-based offerings.
A Cutting-Edge Partnership Powering Innovation
The forthcoming sport event contracts will be facilitated via Crypto.com Derivatives North America (CDNA), an exchange registered under CFTC regulations but seamlessly integrated into Underdog’s platform using proprietary technology solutions. This collaboration not only broadens product variety but also enhances user experience through advanced infrastructure tailored specifically for real-time market activity during live sporting events.
“Leading the charge in providing these innovative contract types gives us a unique position,” said Travis McGhee, Managing Director & Global Head of Capital Markets at Crypto.com.
“Our partnership with Underdog expands accessibility while demonstrating CDNA’s cutting-edge capabilities.”
A Vision for Future Fan Engagement Models
this alliance marks a shift toward more interactive fan participation where strategic financial decision-making intersects athletic competition predictions without relying on traditional bookmaker odds models.As regulatory clarity improves alongside technological progressions,we anticipate rapid expansion across additional states-and potentially global markets-reshaping how millions connect with professional athletics every season worldwide.
