Underdog, a leading fantasy sports operator that also operates a traditional online sportsbook in North Carolina, today announced it was partnering with Crypto.com to offer sports prediction markets through its platform.
The partnership is with Crypto.com Derivatives North America (CDNA), which has Commodity Futures Trading Commission (CFTC) approval to operate nationwide as a Designated Contract Market, as well as a Derivatives Clearing Organization. In a press release announcing the partnership, Underdog said the “CDNA sports event contracts will be powered by Underdog’s technology.”
Jeremy Levine, Underdog founder and CEO, said prediction markets’ future is in sports event contracts.
“Prediction markets are one of the most exciting developments we’ve seen in a long time,” Levine said. “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.”
Regarding how Underdog will be uniquely positioned to compete with Kalshi, Chris Grove, gambling industry executive, founder and analyst who was among early investors in Underdog, told PredictionNews:
“Underdog will lean on the same strengths – product innovation and an authentic, credible brand that resonates with consumers – that have led it to success in fantasy sports.”
“Ultimately, people want products that work delivered by brands they trust,” Grove added.
Underdog sports contracts to be available in 16 states
Underdog says the CDNA partnership will offer its users “a secure, federally compliant way to access CDNA sports event contracts and make predictions on the outcomes of their favorite sports events, all within the Underdog app.”
According to CNBC, CDNA and Underdog say the sports prediction markets will, at least initially, only be available in 16 unspecified states that currently do not have legal sports betting. That likely includes California and Texas, the two largest states that have yet to legalize sports betting.
Crypto.com began offering sports prediction markets on its own platform in late 2024, ahead of leading U.S. prediction market platform Kalshi, which rolled out sports event contracts in early 2025.
“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,” Crypto.com’s managing director and global head of capital markets Travis McGhee said in the release. “We were the first to offer sports events contracts, and our technology partnership with Underdog will provide more access to CDNA’s innovative offerings.”
Underdog adds prediction markets alongside DFS, sports betting
The press release also states that, “Underdog is now the only company offering fantasy sports, sportsbook, and prediction markets in one seamless app.”
But all three of those options won’t be available in every state. Underdog Fantasy is available in some form in more than 40 states, though some contests, like Pick’ems, are restricted due state regulations. Underdog has licenses to operate DFS in the states that require them.
Underdog’s sportsbook is only live in North Carolina. The company has applied for a sports betting operator license in Missouri and currently has an active sports betting license in Ohio, but has yet to launch in the Buckeye State.
Sports gaming companies have mostly taken tentative prediction market steps
In August, sports betting giant FanDuel announced it was partnering with the CME Group to begin offering prediction markets. At least initially, FanDuel said it would not be offering sports prediction markets, instead focusing on financial markets.
Other sports gaming groups have also shown interest in entering the prediction market space. DraftKings has been rumored to be looking at purchasing CFTC-approved prediction platform Railbird, and the company has also applied for membership and registration with the National Futures Association (NFA). Entities representing Underdog and fellow DFS operator PrizePicks have also applied for NFA membership.
Underdog also applied to be registered with the NFA as a Swap Firm and Futures Commission Merchant (FCM). Approval as an FCM would enable Underdog’s partnership with CDNA and allow the company to handle money from trades. Robinhood is a registered FCM, which allows it to host Kalshi event contracts on its platform.
Underdog risks license suspension in Ohio with latest move
DraftKings and other sports betting operators have been careful with their comments about entering the prediction markets space. These companies have relationships with state regulators that control their licensing in the states in which they operate. States like Nevada, New Jersey and Maryland have made it clear that they believe sports prediction markets are the same as sports betting and require licensing as such. There are ongoing legal challenges to Kalshi’s ability to offer sports prediction markets in those states.
Through its market-access partnership with the Cincinnati Reds, Underdog has had a sports betting license in Ohio since just before the state launched its sports betting market in early 2023. But, for unknown reasons, Underdog has yet to launch its sports betting product in the state. Underdog also has a license to operate DFS in Ohio.
Ohio is one of the states that has expressed concerns about sports prediction markets. This spring, the Ohio Casino Control Commission issued cease-and-desist letters to Kalshi, Crypto.com and Robinhood insisting the outlets stop offering sports prediction markets in the state. But all three companies continue to offer sports contracts there.
In August, according to The Closing Line newsletter, the OCCC also issued a letter to active sports betting licensees that stated that if a platform were to begin offering sports prediction markets, it could put their licenses in jeopardy.
Ohio’s warning about sports betting operators could be a preview of what’s to come in other states, as the prediction markets — and their sports event contracts — continue to expand.
