Underdog Opens New Frontier – Opens Prediction Markets Through Crypto.com Deal

Underdog is rolling out a new prediction market feature, built in collaboration with Crypto.com’s regulated derivatives division. The move expands the company’s offerings beyond fantasy contests, letting users take positions on outcomes across major sports in real time.

What’s New: Outcome Contracts in the Underdog App

The update lets fans buy and sell outcome-based contracts tied to results in the NFL, NBA, MLB, college football, and other leagues. Prices adjust live, giving users the ability to react instantly as games unfold. The launch covers 16 states, including some where traditional sportsbooks remain unavailable but where event-style contracts are permitted under federal guidelines.

Legal and Regulatory Framework

To stay on solid regulatory ground, Underdog has partnered with Crypto.com’s U.S. derivatives affiliate, which operates under federal oversight. Unlike a sportsbook, where players bet against the house, these markets function more like tradeable contracts between participants. That distinction is key to how regulators classify and oversee the product.

Strategy and Business Implications

For Underdog, the move is a natural next step. The company built its reputation on fantasy sports and pick’em contests, and adding prediction markets creates another way for fans to engage. The expansion also helps Underdog stand out in a competitive industry, offering both fantasy contests and market-style contracts in the same platform — something few rivals attempt. In states without broad sports betting access, this approach could also widen its potential audience.

What Users Should Know

Prediction markets allow users to respond the moment circumstances change. An injury, a sudden weather shift, or a momentum swing can all create opportunities to trade into or out of contracts. Because this format is new to most U.S. sports fans, education will be important: understanding how prices move, how much market depth exists, and how risk is managed. Underdog says responsible gaming tools will remain central, with features designed to help players set limits and manage activity.

Looking Ahead

As this new product rolls out, several markers will show its impact:

• Adoption levels compared to fantasy and pick’em contests
  
• Growth in contract pricing activity as more users join
  
• Any regulatory developments clarifying how prediction markets fit within U.S. gaming law
  

If the rollout succeeds, it could change how fans experience live sports — shifting from simply watching the action to actively trading on what they believe will happen next.

Underdog at a Glance

Founded in 2020 and based in Brooklyn, Underdog has become a fast-rising name in fantasy sports with daily contests, best ball leagues, and pick’em games. The launch of prediction markets adds another layer, giving fans more ways to engage alongside its existing products. Known for pairing innovation with responsible gaming tools, Underdog continues to position itself as a versatile platform for sports fans. For a closer look at bonuses, features, and overall experience, check out our full Underdog review.