Underdog, a U.S.-based fantasy sports platform, has partnered with Crypto.com/Derivatives North America (CDNA) to offer federally regulated sports event contracts to American users directly within the Underdog app. This collaboration creates the first all-in-one platform combining fantasy sports, sports betting, and CFTC-compliant prediction markets.
Regulatory Framework and Product Details
Under the agreement, CDNA—a CFTC-registered designated contract market (DCM) and derivatives clearing organization (DCO)—will make its prediction market contracts available on Underdog’s platform. Users can trade contracts based on outcomes of professional and college sports events, including the NFL, NBA, and MLB. Contract prices update in real time based on market liquidity and trading activity.
CDNA benefits from Crypto.com’s established infrastructure and broad user base, which spans cryptocurrency trading, wallets, and NFT services. The CFTC registration ensures that all contracts operate under a federally compliant framework, differentiating them from unregulated sports betting operations or offshore prediction platforms. Underdog, which holds gaming licenses in multiple states, will apply its existing responsible gaming protocols—such as deposit limits and self-exclusion tools—to the new prediction market product.
The integration means that users no longer need to switch between separate apps for fantasy sports, traditional sports betting, and event contracts. Underdog’s existing user base of fantasy and sports bettors can now access real-time prediction markets for the same sports they already follow.
Executive Commentary and Strategic Implications
Underdog CEO Jeremy Levine described prediction markets as an “exciting development” whose future naturally centers on sports. “We believe the combination of fantasy, betting, and prediction markets under one roof will redefine how fans engage with live sporting events,” Levine said. Crypto.com’s Travis McGhee, Managing Director of CDNA, added: “We are thrilled to partner with Underdog to enhance the sports experience for customers nationwide with the ability to now trade using Underdog’s technology – all in one app.”
The partnership arrives as the CFTC has increasingly scrutinized prediction markets, issuing guidance on event contracts and proposing rules that would ban certain types of political and gaming contracts. However, CFTC-registered DCMs like CDNA are permitted to offer sports-related event contracts under existing exemptions, provided they meet specific listing standards. This regulatory clarity gives CDNA a competitive edge over unregulated platforms such as Polymarket, which faces uncertainty in the U.S. legal landscape.
Underdog’s move also signals convergence between the crypto industry and traditional sports gambling. Crypto.com has aggressively expanded its sports sponsorships (including arena naming rights and team deals), and this partnership deepens its foothold in the U.S. sports ecosystem. By leveraging Underdog’s existing customer relationships and gaming licenses, CDNA can onboard sports bettors who may not have previously engaged with crypto-native prediction markets.
Market Context and Future Outlook
The prediction market sector has seen explosive growth, with platforms like Kalshi, Metaculus, and Manifold attracting millions of users. However, most U.S.-focused platforms have avoided sports contracts due to regulatory complexity. Underdog and CDNA’s initiative could open the door for more regulated sports prediction products, especially if the CFTC finalizes clearer rules for event contracts.
Underdog notes that the feature is initially available only in jurisdictions where the company is licensed, with plans to expand as regulatory approvals allow. The app’s single-interface approach may accelerate user adoption, as it eliminates friction for existing fantasy sports and sports betting users. Industry observers predict that other fantasy sports operators—such as DraftKings and FanDuel—will closely watch this experiment, potentially leading to similar partnerships with crypto-regulated entities.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Prediction market contracts involve financial risk. Users should conduct their own research before participating.