Underdog and Crypto.com debut a sports prediction market to let US users in 16 states bet on the NFL, the NBA, MLB, college football, and more in Underdog's app
Contessa Brewer / CNBC :
Context & Ripple Effects
Underdog had been building from fantasy sports toward licensed wagering, as reflected in its earlier plans to enter licensed sports betting. This partnership puts Crypto.com's event-contract infrastructure inside a consumer sports app rather than requiring users to start with a standalone exchange.
The move follows Crypto.com and Kalshi's nationwide Super Bowl sports-wager rollout, which drew pushback from state regulators. Later entries show major sportsbook brands pursuing similar prediction-market products, making distribution through established sports apps a key competitive lever.
First-order effects
- Underdog users in 16 states gain sports prediction-market access within the app across major US leagues and college football, while Crypto.com gains an embedded consumer-distribution channel.
- The partnership expands Underdog's product scope beyond its prior fantasy-sports base and gives Crypto.com a sports-focused front end for its market offering.
Second-order effects
- Sportsbook and fantasy rivals face added pressure to match the convenience of in-app event contracts; the later DraftKings Predictions launch and planned FanDuel Predicts app show that response taking shape.
- State regulators and incumbent gambling operators are likely to scrutinize whether prediction-market distribution changes the practical reach of sports wagering, especially after the earlier regulatory backlash around Crypto.com and Kalshi.
Third-order effects
- If sports apps continue to embed event contracts, prediction markets could become a standard distribution layer alongside fantasy and sportsbook products, shifting competition toward customer access and product integration.
- The model's durability will depend on how regulators treat sports-event contracts offered through mainstream consumer apps; uneven treatment could fragment availability by state and provider.
The trend: Sports platforms are converging with prediction-market infrastructure as firms seek broader sports engagement in jurisdictions where conventional wagering access is constrained.