Underdog, Crypto.com launch first CFTC-approved sports prediction markets

Sports prediction markets are moving into the mainstream. Underdog, a fast-growing sports gaming startup in the U.S., has partnered with Crypto.com Derivatives North America (CDNA), a CFTC-registered exchange and clearinghouse, to bring federally regulated sports event contracts to its app. CDNA will run the contracts on Underdog’s technology, giving American fans a new way to trade on the outcomes of their favorite games.

“Prediction markets are one of the most exciting developments we’ve seen in a long time,” said Underdog founder and CEO Jeremy Levine. “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 launch means customers can now trade contracts tied to events across the NFL, college football, NBA, MLB, and more. Prices update in real time, allowing fans to react instantly to what’s happening on the field or court.

Travis McGhee, Managing Director and Global Head of Capital Markets at Crypto.com, framed the move as a natural extension of both companies’ ambitions. “We are thrilled to partner with Underdog to enhance the sports experience for customers nationwide with the ability to now trade using Underdog’s technology – all in one app,” McGhee said. “We were the first to offer sports events contracts, and our technology partnership with Underdog will provide more access to CDNA’s innovative offerings.”

The integration makes Underdog the only U.S. operator offering fantasy sports, a sportsbook, and prediction markets in a single platform. The company holds gaming licenses across multiple states and has built its reputation on responsible gaming safeguards, which it plans to extend to prediction markets.

Founded in 2016, Crypto.com has become one of the most recognized names in the crypto industry, trusted by millions of users worldwide. CDNA, its U.S. affiliate, is regulated by the Commodity Futures Trading Commission and offers trading in both sports and economic event contracts.

Underdog, founded in 2020, has quickly grown into a leader in fantasy sports and sports betting. Its products and media network aim to make sports more interactive and fun, a mission the company says prediction markets will only accelerate.