Underdog to launch sports prediction markets with CFTC-registered partner

Summary

Underdog is set to integrate federally regulated sports prediction markets into its app by partnering with Crypto.com Derivatives North America (CDNA), an exchange registered with the US Commodity Futures Trading Commission (CFTC). The rollout will cover 16 states and will target markets where traditional sports betting is not legal.

The service uses tradable event contracts that pay out if a prediction comes true rather than conventional wagers. Underdog says it will be the first operator to combine fantasy sports, sportsbook products and prediction markets within a single app. The move comes amid growing interest from major operators and increased regulatory scrutiny from state regulators, who have warned some event contracts could be treated as sports betting.

Key Points

Underdog is partnering with Crypto.com Derivatives NA (CDNA), a CFTC-registered exchange, to offer prediction markets in 16 states.
Prediction markets sell tradable contracts that settle on event outcomes rather than traditional bets.
Underdog claims to be the first to offer fantasy, sportsbook and prediction markets in one app.
The strategy focuses on states without legal sports betting, potentially reaching markets such as California and Texas.
State regulators have issued warnings that some prediction markets may be viewed as sports betting, risking licences.
Other major players (FanDuel with CME, DraftKings) are also exploring event trading, signalling broader industry momentum.
Analysts estimate US prediction markets could be worth billions if widely adopted, but legal uncertainty remains with multiple lawsuits and regulatory reviews underway.

Why should I read this?

Short and sharp: if you follow US sports betting, product innovation or regulation, this is worth your attention. Underdog teaming with a CFTC-registered partner is a fast route into states that currently ban sports betting — and that could change customer access and competitive dynamics overnight. Read this to know who’s moving first, where they’ll operate, and what regulators are already flagging.

Source

Source: https://igamingbusiness.com/innovation/underdog-prediction-markets-crypto-com/