Flutter Entertainment Plc's Underdog Partners with Crypto.com for Innovative Sports Prediction Markets
- Underdog partners with Crypto.com to launch sports prediction markets in 16 U.S. states, targeting regions lacking legal sports betting.
- This initiative diversifies Underdog's offerings and potentially increases revenue streams in areas with strict betting regulations.
- Underdog aims to reshape sports gaming by merging financial trading elements with fan engagement, attracting new demographics.
### Underdog Partners with Crypto.com to Pioneer Sports Prediction Markets
Underdog, a rising player in the fantasy and sports gaming sector, announces a strategic partnership with Crypto.com aimed at launching sports prediction markets across 16 U.S. states. This innovative move positions Underdog as the first sports gaming platform to delve into the emerging realm of prediction markets, where participants can buy and sell outcomes of sporting events without the need for traditional bookmakers. The initiative primarily targets regions lacking established legal sports betting, which allows Underdog to navigate around regulatory challenges present in populous states like California and Texas, as well as in Florida, where tribal monopolies complicate the betting landscape.
This development comes at a time when legal sports betting is expanding rapidly in the United States, yet significant portions of the market remain untapped due to stringent regulations. By entering the prediction market space, Underdog not only diversifies its offerings but also potentially increases its revenue streams in states where traditional sports betting is not yet viable. Market analysts predict that the sports prediction market could generate around $555 million this year, pointing to a lucrative opportunity for Underdog as it leverages its technology in collaboration with Crypto.com. The partnership allows sports event contracts to be managed by Crypto.com Derivatives North America (CDNA), which is already registered with the Commodity Futures Trading Commission (CFTC), ensuring compliance and enhanced credibility.
Underdog’s entry into sports prediction markets could reshape the landscape of sports gaming by merging elements of financial trading with fan engagement. This innovative approach may attract a new demographic of bettors who are interested in the speculative nature of trading outcomes. As the evolving regulatory environment continues to be scrutinized by the CFTC and federal courts, the legitimacy of sports prediction markets remains a critical question. Underdog’s foray into this space not only positions it ahead of notable competitors like FanDuel and Polymarket but also signifies a potential shift in how sports betting might be perceived and regulated moving forward.
In related news, the partnership underscores the increasing collaboration between sports gaming operators and cryptocurrency platforms, enhancing accessibility and innovation in the industry. Travis McGhee, managing director at Crypto.com, highlights that this alliance not only broadens access to CDNA’s offerings but also reaffirms both companies' commitment to pioneering new avenues in sports betting and gaming technologies. As the market evolves, Underdog’s strategic initiatives may set the standard for future developments in the sports gaming landscape.
