Underdog kicked off September with a bang, becoming the first sportsbook operator to take involvement in sports event contracts from the theoretical to the real.
Early Tuesday morning the company announced it is now offering sports event contracts in-app on Underdog via a new partnership with Crypto.com.
Deal is live in-app in 16 states
The partnership is not nationwide but is available in 16 states. Underdog did not verify which states the partnership would be available in, but reporting from CNBC said the offering will largely be in states where sports betting is not legalized yet, such as California and Texas.
“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 in-app integration looks different that the picks-style offerings Underdog has come to be known for but still displays as a traditional sportsbook might with an odds format. Users are able to trade the event contracts while the event is pending.
“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,” said Managing Director, Global Head of Capital Markets at Crypto.com Travis McGhee. “We were the first to offer sports events contracts, and our technology partnership with Underdog will provide more access to CDNA’s innovative offerings.”
Ohio regulators warned operators about this
The news comes shortly after an announcement from the Ohio Casino Control Commission (OCCC) cautioning sportsbook licensees to be careful before partnering with event contract companies. The letter explicitly said that the state viewed event contracts being traded in the state as illegal sports betting.
The group also cautioned that partnering with companies that offer these contracts in the state, even if the partnership geolocated out Ohio, could still jeopardize licensure. Crypto.com and others received a cease and desist from the OCCC in April but continue to offer sports contracts in the state while federal court cases involving other state regulators and the likes of Kalshi and Crypto.com are litigated.
However, the letter specifically addressed sports gaming licensees and did not note if the same standard applied to fantasy sports licensees.
While Underdog is moving forward quickly with a sports event contract partnerships, other operators are taking a more cautious approach. FanDuel announced a partnership with CME Group on event contracts, but have stated that, at least at launch, sports offerings will not be part of the offering.
