Underdog Enters Prediction Markets Through Partnership with Crypto.com
The daily fantasy sports operator Underdog makes a move into the prediction markets space, announcing a new partnership with Crypto.com to offer sports-based event contracts to its customers. The collaboration will integrate Crypto.com’s federally regulated derivatives product directly into the Underdog app, making Underdog the first major fantasy sports and betting operator to formally enter the burgeoning prediction markets sector.
A Technology-Driven Partnership
The core of the agreement is a technology partnership. Underdog will leverage its existing app and user base to provide a front-end experience for customers to trade Crypto.com’s event contracts. The underlying product, known as CDNA (Crypto.com Derivatives North America), is a federally regulated offering.
“We were the first to offer sports events contracts, and our technology partnership with Underdog will provide more access to CDNA’s innovative offerings,” said Travis McGhee, Managing Director at Crypto.com.
The integration will allow Underdog users to trade on the outcomes of games across all major sports leagues, including the NFL, college football, and the NBA, with prices updating in real time. Initially, the offerings will focus on simple “who will win” markets.
A Strategic Play to Reach New Markets
The partnership provides a clear strategic advantage for Underdog. By offering a federally regulated product, the company will be able to provide these prediction markets in 16 states, many of which have not yet legalized traditional online sports betting. This creates a new revenue stream and a way to engage with customers in markets that are currently off-limits to its sportsbook product.
The move also positions Underdog as a first mover among its direct competitors. While other major operators like DraftKings and FanDuel are exploring the prediction market space, Underdog is the first to announce a concrete plan to launch.
“Prediction markets are one of the most exciting developments we’ve seen in a long time,” said Jeremy Levine, founder and CEO of Underdog. “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.”
A Unified Platform and a Commitment to Responsible Gaming
With this new offering, Underdog becomes the only company to provide fantasy sports, sports betting, and prediction markets within a single, unified app, all built on its own proprietary technology. The company, which is the second-largest DFS operator in the country behind PrizePicks, also operates a licensed sportsbook in North Carolina and has plans to launch in Missouri.
As it expands into this new vertical, Underdog has emphasized its commitment to responsible gaming. The company stated that it will apply the same consumer protection standards and safeguards that it has implemented across its existing platforms to its new prediction market offering.
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