Underdog Sports Betting Partners with Crypto.com to Revolutionize Event Contracts

Underdog has partnered with Crypto.com to offer event contracts, allowing users to trade on sports leagues through derivatives-like mechanisms, blurring the line between traditional betting and cryptocurrency trading. This new approach enables users to buy and sell positions during games, potentially locking in profits or cutting losses. The partnership aligns with the peak betting season and may appeal to a new demographic of sports fans who view themselves as traders rather than traditional gamblers.

Underdog, a leading fantasy sports and gaming company, has partnered with Crypto.com to launch sports event contracts in 16 U.S. states. This new venture allows users to trade on sports leagues through derivatives-like mechanisms, blurring the line between traditional betting and cryptocurrency trading. The partnership is set to align with the peak betting season and may appeal to a new demographic of sports fans who view themselves as traders rather than traditional gamblers.

The partnership leverages Crypto.com's CFTC-registered exchange to provide federally compliant trading, targeting regions like California and Texas where legal sports betting remains unavailable. Underdog users can now trade contracts based on the outcomes of major sports events, including leagues like the NFL, NBA, and MLB. These contracts function as binary derivatives, with prices fluctuating in real time based on market sentiment.

The partnership is significant as it allows users to buy and sell positions during games, potentially locking in profits or cutting losses. This dynamic approach to sports betting could attract a new audience of traders who are looking for more sophisticated and interactive ways to engage with sports outcomes.

Despite the potential of sports prediction markets, the legal landscape remains uncertain. Regulators and legal experts continue to debate whether these contracts fall under the CFTC's exclusive jurisdiction or are subject to state-level gambling laws. This ambiguity has led to ongoing legal challenges, with states such as New Jersey, Nevada, and Ohio issuing cease-and-desist orders to platforms like Kalshi and Robinhood.

Underdog and Crypto.com are betting on a future where prediction markets become a standard offering for sports fans across the country. The partnership is part of a broader trend of expansion in the prediction market space, with other platforms like Kalshi, Robinhood, and Polymarket also vying for market share. Established sports betting operators like FanDuel and DraftKings are exploring similar opportunities, with FanDuel recently partnering with CME Group to develop new event-based contracts.

References:
https://www.cnbc.com/2025/09/02/cryptocom-and-underdog-partner-to-offer-sports-prediction-markets.html
https://www.ainvest.com/news/underdog-crypto-bet-big-legal-gray-area-sports-prediction-markets-2509/
https://www.reuters.com/sports/underdog-bets-sports-event-contracts-with-cryptocom-partnership-2025-09-02/