Cryptocurrency platform Crypto.com and an underdog entity unite to introduce a sports prediction market

Underdog Partners with Crypto.com and Enters Prediction Markets: Ohio Casino Control Commission Issues Warning

In a move that signals the growing convergence of sports betting, daily fantasy sports, and prediction markets, Underdog has partnered with Crypto.com, a CFTC-registered exchange and clearinghouse. This partnership will make sports event contracts available to customers through Underdog's platform, marking the first time such products will be offered by a gaming company.

Underdog, which currently offers online sports betting in North Carolina and holds a sports betting license in Ohio, has yet to launch in the Buckeye State. The company has also applied for a partnered online sports betting license in Missouri.

However, the Ohio Casino Control Commission has issued a warning to licensed sports betting operators, stating that offering sports event contracts without a license or proper vetting will be considered in the evaluation of a sports gaming licensee's suitability. The Commission believes that the Commodity Futures Trading Commission (CFTC) is the only regulatory body that can legally block contracts from being offered to customers.

This stance is in contrast to the position taken by companies like Underdog, Robinhood, and Kalshi, who believe that state regulatory bodies do not have the right to intrude on the government's "exclusive" authority to regulate prediction markets. Robinhood and Kalshi have filed lawsuits in seven states to defend their offering of sports event contracts, facing backlash from state regulatory agencies.

DraftKings, another major player in the sports betting industry, has applied to enter the National Futures Association, an early step into entering the prediction markets. FanDuel, another leading company, has partnered with CME Group, a leading derivatives marketplace, to develop new event-based contracts for FanDuel users.

As the landscape of sports betting and prediction markets continues to evolve, it remains to be seen how state regulatory bodies will respond to the introduction of sports event contracts by Underdog and other companies. Dustin Gouker reported in The Closing Line about the Ohio Casino Control Commission's warning to licensed sports betting operators regarding sports event contracts.

Underdog is unique in the gaming industry as it offers sports betting, daily fantasy sports, and prediction markets to its users. The company currently offers its daily fantasy sports products in 40 states, plus Washington, D.C., and Ontario. As the company continues to expand its offerings and enter new markets, it will be interesting to see how it navigates the complex regulatory landscape.

Cryptocurrency platform Crypto.com and an underdog entity unite to introduce a sports prediction market