Fantasy sports and betting platform Underdog has announced a partnership with Crypto.com to offer sports prediction markets.
The deal between the two companies marks the first move from a sports betting company into prediction markets.
A press release stated: “Underdog is now the only company offering fantasy sports, sportsbook, and prediction markets in one seamless app.”
Prediction markets have continued to expand into sports since Crypto.com and Kalshi launched the first markets on the Super Bowl this year.
Esports prediction markets could soon become part of a wider offering. Image Credit: Vardan Papikyan/Unsplash
Further Expansion Expected to Include Esports
The companies said the markets will include NFL, college football, NBA, MLB, and more, which could include esports.
Underdog signed a partnership with BLAST in April this year to sponsor three events, including the BLAST Austin Major, and the company’s fantasy sports include esports.
The platform has Pick’em contests for esports, allowing users to make Higher/Lower selections on specific in-game statistics. This includes headshots or kills in Counter-Strike and various League of Legends or Dota 2-specific talking points.
Crypto.com does not currently have esports markets on site, but rival platforms Kalshi and Polymarket offer a range of markets. The current offerings include League of Legends, Counter-Strike 2, and VALORANT. has recently introduced 24/7 trading, enhancing
Kalshi recently moved to 24/7 trading, further enabling fans to participate in the trading of global events as and when they happen.
Partnership Likely to Face Legal Challenges
Both Underdog and Crypto.com have faced legal challenges recently due to offering games, which some states have interpreted as unlicensed sports betting. State regulators will almost certainly oppose the collaboration.
Underdog has been forced to switch to peer-to-peer versions of its Pick’em games in several states, most recently in California.
Attorney General Rob Bonta declared DFS illegal in the state. Underdog filed an injunction to stop the release of Bonta’s opinion, but this was rejected.
In New York, the platform was fined $17.5 million for violating the terms of its license and exited the state. It has since relaunched with a limited version of its DFS games.
Meanwhile, five states sent cease-and-desist orders to Crypto.com over the expansion of its sports markets. In response, the company filed lawsuits in Maryland and Nevada.
Kalshi is also involved in several ongoing court battles, which could determine the future legal status of sports prediction markets.
For now, the Commodity Futures Trading Commission (CFTC), which licenses Crypto.com and Kalshi, has shown no sign of stopping the expansion.
Due to this, more companies may follow Underdog’s move, which offers an opportunity to engage sports fans in states with no legal sports betting.
The platform’s founder and CEO, Jeremy Levine, commented, “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.”