Crypto.com Derivatives North America (CDNA), a CFTC-registered exchange, has partnered with fantasy sports operator Underdog to launch sports prediction markets in 16 U.S. states. The initiative, announced on September 2, 2025, allows users to trade outcome contracts for major leagues including the NFL, NBA, MLB, and college football directly through the Underdog app.
The rollout will prioritize states like California and Texas where legal sports betting is not yet available, leveraging CDNA's infrastructure for clearing and settlement. This makes Underdog the first sports gaming operator to offer a federally compliant path for prediction markets. Unlike traditional sportsbooks, these markets enable real-time price fluctuations based on user trading activity rather than fixed odds set by bookmakers.
Underdog CEO Jeremy Levine called prediction markets "one of the most exciting developments," while Crypto.com's Global Head of Capital Markets Travis McGhee emphasized their pioneering role in sports event contracts. The partnership faces competition from platforms like Polymarket, Kalshi, and Robinhood, though regulatory uncertainty remains—highlighted by a recent CFTC legal challenge against Kalshi that was overturned by a federal judge.