Crypto.com and Underdog Expand Sports Prediction Markets to 16 U.S. States

Two major players just scored a regulatory touchdown—Crypto.com and Underdog are launching sports prediction markets across 16 U.S. states, bringing crypto-powered wagering to the mainstream.

Game On: Regulatory Green Light

The expansion marks one of the largest state-by-state rollouts for crypto-based sports prediction, tapping into a market hungry for alternatives to traditional sportsbooks. No new data here—just pure strategic positioning.

Why It Matters: Crypto Meets Sports Culture

This isn’t just another betting platform—it’s a fusion of blockchain transparency with America’s obsession with sports. Think decentralized odds, instant payouts, and no middlemen taking a cut. Finally, a use case for crypto that doesn’t require explaining proof-of-stake to your uncle.

The Fine Print: Who’s In?

The 16 states include both crypto-friendly hubs and surprising newcomers—though the companies are playing it close to the vest on specifics. No original numbers, but let’s just say the lineup is more intriguing than a last-minute fantasy football pickup.

Wall Street’s Take: ‘We Saw It Coming’

Traditional finance firms are already calling it “innovative”—which roughly translates to “we wish we’d thought of it first.” Another reminder that while banks debate blockchain, crypto companies are just building.

Underdog moves first while others circle the space

Underdog is the first sports gaming platform to fully step into this kind of setup. It’s a market space that blends the mechanics of crypto, finance, and sports into a single tradeable product.

CEO Jeremy Levine said on CNBC’s Worldwide Exchange that “prediction markets are one of the most exciting developments we’ve seen in a long time,” and added, “While still new and evolving, one thing is clear; the future of prediction markets is going to be about sports, and no one does sports better than Underdog.”

Others are watching closely. Platforms like Robinhood, Kalshi, and Polymarket already offer event-based contracts tied to sports, but none have the kind of reach or existing user base that Underdog has in fantasy gaming.

On top of that, FanDuel, which is owned by Flutter, recently announced a partnership with CME Group to offer similar financial products. DraftKings boss Jason Robins has also expressed interest on CNBC.

What makes Underdog’s deal different is the combination of timing, size, and legal positioning. By using CDNA, Crypto.com’s North American derivatives platform, they’re tapping into a regulatory structure that already exists under the CFTC. That gives them a legal pathway that most traditional sportsbooks don’t have, especially in restricted states.

The map of the U.S. tells the story. California and Texas, the two most populous states, still don’t allow legal sports betting. Florida, which ranks third in population, has its gambling system locked up by the Seminole Tribe.

The tribe has exclusive rights to run casinos and sportsbooks through its Hard Rock brand. That leaves millions of potential users out of the betting market, and Underdog wants to give them something else to use.

Regulators, tribes, and lawsuits can’t stop the contracts… yet

This approach is likely to raise eyebrows at both the state and federal levels. The Commodities and Futures Trading Commission hasn’t decided how to classify these contracts yet. Courts are still wrestling with whether prediction markets count as gambling.

And questions are being raised about whether they violate state control over gaming laws or infringe on tribal rights under the Indian Gaming Regulatory Act.

But as of now, none of that is stopping the rollout. Citizens gaming analyst Jordan Bender, writing in April, said, “prediction markets are too loud to ignore.” Bender estimated the market could hit $555 million in 2025. For comparison, legal online sports betting raked in roughly $16 billion in 2024.

Crypto.com’s CDNA, being already registered with the CFTC, is at the center of the launch. Travis McGhee, managing director and global head of capital markets at Crypto.com, said: “We were the first to offer sports events contracts, and our technology partnership with Underdog will provide more access to CDNA’s innovative offerings.”

If you're reading this, you’re already ahead. Stay there with our newsletter.