Underdog Set to Launch Sports Prediction Market Platform

Underdog Sports is set to make history.

The daily fantasy sports (DFS) and sports betting giant has announced a new partnership with Crypto.com. The deal will allow Underdog to become the first sportsbook to offer a sports prediction market. 

While the company has shared that the platform is live in 16 states, they have not shared which ones are included. Underdog has confirmed its plans to target states without online legal sports betting, giving us an idea of the markets the operator will be available in.

“Prediction markets are one of the most exciting developments we’ve seen in a long time,” said Underdog founder and CEO Jeremy Levine. “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.”

The announcement comes just days after FanDuel announced it would be entering the prediction market space, but would not offer a platform for sports. Fellow industry-leader DraftKings is also reported to be in discussions with Railbird Exchange to offer prediction markets.

Underdog is one of the country’s top DFS operators, but its sportsbook is only available in North Carolina.

Rivals May Not Follow Underdog’s Lead…Yet

Some believe Underdog’s entrance into sports prediction markets will unleash the metaphorical floodgates. Several major sportsbooks have openly spoken about their interest in joining the new industry, signaling that a massive shift away from sports betting is coming.

While there is no question that other sportsbooks will take notice that Underdog is the first to market, don’t count on them rushing to compete. 

State regulators have begun warning sportsbooks to stay away from sports prediction markets. They believe the industry is offering an illegal form of gambling, and many are actively working to push operators out. As a result, regulators may pull sports betting licenses from sportsbooks that decide to offer markets of their own.

Those warnings will give sportsbooks like FanDuel, DraftKings, and BetMGM pause, but not Underdog. The operator only offers a sportsbook in North Carolina, meaning they can launch a sports prediction market in the other 49 states without any repercussions. While Underdog and Crypto.com will soon face lawsuits over their new markets, their investment shows they don’t fear the future of the controversial industry.