Underdog and Crypto.com announced a joint launch in the United States of sports event contracts based on a prediction market model, offering users a new betting method compliant with federal regulations. This move will allow players to exchange views on the outcomes of major sports leagues such as the NFL, college football, NBA, and MLB.
Underdog's founder and CEO Jeremy Levine stated: "Prediction markets are one of the most groundbreaking innovations we've seen in recent years. Although this field is still in its early stages and evolving, it is certain that the future of prediction markets will be closely linked to sports, and no one has more experience in sports predictions than Underdog."
This collaboration is similar to FanDuel's strategic layout but also differs. FanDuel has chosen to enter a broader prediction market, while Underdog focuses on sports event contracts, a vertical that has long been controversial and considered by many in the industry to have similarities with traditional sports betting.
On the regulatory front, Underdog has obtained relevant licenses in some U.S. states to legally offer sports betting and fantasy sports services. However, its compliance in other markets remains uncertain.
The Crypto.com branch involved in this collaboration is a trading and clearing institution registered with the U.S. Commodity Futures Trading Commission (CFTC), ensuring that the model can operate in compliance at the federal level.
Crypto.com's Global Head of Capital Markets Travis McGhee said: "We are excited to introduce the sports prediction market into an application through Underdog's technology, enhancing the sports experience for users across America. As the first company to offer sports event contracts, our collaboration will bring innovative products to more players."
As the prediction market gradually moves towards regulation in the United States, this collaboration could become a key experiment in the integration of sports and crypto trading, potentially redefining the interaction and betting methods of sports fans.
