Underdog Pioneers a New Frontier in Sports Betting Innovation

Underdog and Crypto.com have launched a new initiative in the form of sports prediction markets across 16 U.S. states, marking a significant expansion for both firms in a fast-evolving market segment. This partnership positions Underdog as the first fantasy sports operator to officially enter the domain of prediction markets, which blend aspects of sports wagering with elements of commodities trading. Prediction markets allow participants to buy and sell contracts tied to outcomes of sporting events, with prices fluctuating in response to market demand and expectations.

The new platform offers prediction markets on a variety of sports events across major U.S. leagues, including the NFL, college football, NBA, and MLB. Unlike traditional fixed-odds betting, the model relies on real-time participant input, creating a dynamic and market-driven system. This approach is particularly relevant in jurisdictions where legal sports betting is still pending or restricted, allowing Underdog to engage consumers in markets that traditional operators cannot yet access.

Underdog’s founder and CEO, Jeremy Levine, emphasized the transformative potential of prediction markets, stating in a press release that they represent one of the most exciting developments in the industry. He highlighted Underdog’s strength in sports as a key differentiator and expressed confidence in the future of the space. Crypto.com’s involvement also signals a growing reliance on blockchain-based infrastructure and electronic payment systems in the prediction market sector, reflecting broader trends in financial technology.

The partnership is entering a market that is attracting increasing attention from both emerging and established players. Last month, FanDuel announced a collaboration with CME Group to introduce financial event contracts, a move that underscores the growing interest in prediction-style markets. DraftKings has also shown openness to exploring similar opportunities, indicating that the sector is gaining traction among mainstream operators.

Analysts are also showing confidence in the potential for growth in the prediction market segment. According to Jordan Bender of Citizens, the market is too prominent to ignore, and he forecasts that sports prediction markets could generate approximately $555 million in revenue by 2025. This is a fraction of the projected $30 billion in wagers expected to be placed at regulated U.S. sportsbooks during the 2025 NFL season. However, the potential for growth is evident given the current gap between the two sectors.

Underdog’s early entry into the market may offer a strategic advantage, particularly as sports betting continues to expand across the U.S. Prediction markets could serve as both a complement and a competitor to traditional sports betting, especially in states with lagging regulatory frameworks. The success of this model will depend on regulatory developments, consumer interest, and the performance of platforms like Underdog. The ongoing evolution of this space will likely shape how Americans interact with sports outcomes in the years to come.

Source: [1] Underdog and Crypto.com team up for sports prediction (https://next.io/news/betting/underdog-crypto-com-team-up-prediction-markets/)