Underdog is entering the sports predictions business through a partnership with Crypto.com.
The company is going to focus on states where sports betting is not legalized, according to CNBC.
“Prediction markets are one of the most exciting developments we’ve seen in a long time,” Underdog CEO Jeremy Levine told CNBC. “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.”
Daily fantasy sports and sports betting brands have been monitoring prediction markets since sports predictions began earlier this year, with DraftKings reportedly looking for a way into the business. FanDuel announced it will soon offer predictions through a partnership with CME Group, though sports predictions were not mentioned as part of the deal.
Sports predictions live in time for NFL
Underdog is live with its sports predictions in 16 states, according to the CNBC report, though the states were not specified.
There are 11 states without legal sports betting:
- Alabama
- Alaska
- California
- Georgia
- Hawaii
- Idaho
- Minnesota
- Oklahoma
- South Carolina
- Texas
- Utah
No matter which states are in that group of 16, none matter as much as California and Texas. Underdog is in a legal battle in California after Atty. Gen. Rob Bonta issued an opinion that said daily fantasy sports contests are not legal in the state.
Are Underdog licenses at risk?
Underdog has daily fantasy sports operations in more than 40 states and has a live sportsbook in North Carolina and a pending sports betting application in Missouri. How regulators will react to sports betting licensees offering sports predictions will likely differ from state to state.
While most regulators have been quiet so far, the Ohio Casino Control Commission has clearly stated it believes sports predictions are sports betting and offering the markets could run afoul of a company’s betting license in the state. This includes even if the operator does not offer those prediction markets in Ohio.
Underdog is licensed to offer sports betting in Ohio but has never acted on that license. It is also licensed to offer daily fantasy in the state, but Ohio’s letter did not mention action against daily fantasy licensees.
Regulators in Missouri and North Carolina did not respond to LSR‘s requests for comment before publication.
