Sports and crypto are colliding in a new way. Underdog, the Brooklyn-based fantasy sports company, has teamed up with Crypto.com’s U.S. derivatives arm to let customers trade sports event contracts directly inside the Underdog app. The companies claim this gives millions of users a federally compliant way to “predict” outcomes across the NFL, NBA, MLB, and more.
Instead of just placing a bet, fans can now trade contracts tied to games, almost like stocks. Prices move in real time depending on how likely an outcome looks, and customers can buy or sell positions as the action unfolds. That sounds engaging, but it is also just another way of framing gambling, and one that borrows the language of Wall Street.
Underdog says it is the first company to combine fantasy sports, traditional sportsbook betting, and federally regulated prediction markets into a single platform. Crypto.com is providing the underlying infrastructure through its CFTC-registered exchange and clearinghouse. That distinction matters, since prediction markets have often been shut down in the U.S. for regulatory reasons.
The pitch is that this is legal, secure, and innovative. But questions remain. Is this really a new frontier for fan engagement, or just gambling with a shinier name? And how will regulators view the blending of financial-style trading with everyday sports fandom?
Underdog insists it has built-in protections and licensing across multiple states, with responsible gaming tools already in place. That should ease some concerns, but critics are likely to question whether “sports event contracts” are just betting markets in disguise.
Fans curious about the concept will be able to try it all in one place: the Underdog app. The companies clearly see this as the future of sports engagement. Whether regulators and the public agree is another matter.
