Underdog has partnered with Crypto.com to launch sports prediction markets in 16 states, catapulting the two companies forward in the increasingly competitive space.
The move makes Underdog the first fantasy sports operator to officially enter the area of prediction markets, a rapidly growing space that blends elements of sports wagering with commodities trading.
Prediction markets offer participants the opportunity to buy and sell contracts attached to sporting event results where prices fluctuate based on supply and demand.
Underdog founder and CEO Jeremy Levine commented in a press release: “Prediction markets are one of the most exciting developments we’ve seen in a long time. 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.”
The new platform will offer prediction markets on sports events contracts across all major US sports leagues including NFL, college football, NBA, MLB, and more, according to the companies.
It allows customers to make predictions on matches in real time, creating a market-driven system rather than fixed odds.
Underdog’s decision to pursue prediction markets also appears to be strategically aligned with jurisdictions where legal sports betting is not yet authorised.
Through this alternative product offering, the firm appears to be targeting consumers in markets still not available to traditional betting operators.
Crypto.com’s collaboration further implies a shift towards blockchain-based infrastructures and electronic payment services within a market that continues to challenge regulatory boundaries.
Competition in this emerging space is becoming stronger.
Last month, FanDuel announced a collaboration with CME Group to introduce financial event contracts, signalling that prediction-style markets are drawing the attention of mainstream operators.
DraftKings has also publicly expressed interest in exploring similar opportunities.
Prediction market segment to continue to grow
Industry analysts see significant momentum behind the sector. Citizens analyst Jordan Bender described prediction markets as too prominent to dismiss in an April research note.
He projected that sports prediction markets could generate approximately $555m in revenue during 2025.
By way of comparison, the American Gaming Association has projected $30bn in wagers at regulated US sportsbooks during the 2025 NFL season, highlighting both the disparity in scale between the two sectors and prediction markets’ potential for growth.
The timing of Underdog’s entry may prove fortuitous. As sports betting continues to spread across the US, prediction markets may act as both a complement and a competitor, particularly in states where regulation lags behind.
The entry into the scene of new players and incumbent sportsbook operators alike suggests a new landscape in how Americans will be engaging with sports results in the upcoming future.
By getting a foothold early, Underdog can create an early-mover advantage in a market that could solidify fast if analysts prove correct.
Whether or not prediction markets become a niche product or become a staple part of sports betting will be determined by regulatory decisions, increased interest on the part of consumers, and smooth performance on the part of platforms such as Underdog.