Crypto.com, the Singapore-based cryptocurrency exchange, is partnering with fantasy sports company Underdog to offer sports prediction markets in 16 U.S. states.
Crypto.com said it plans to focus on states where sports betting has not yet been legalized.
Underdog is the first sports gaming platform to enter the new and rapidly expanding prediction market industry, which is largely focused on sports betting.
Going forward, investors will be able to buy and sell contracts on the outcome of sporting events. However, the odds change based on the betting and there’s no bookmaker involved.
Other online trading and cryptocurrency platforms are also getting into prediction markets and sports betting, including Robinhood Markets (HOOD) and Polymarket.
FanDuel announced earlier this month that it would start offering financial events contracts. And DraftKings (DKNG) has said that it too is interested in entering the area.
Sports events contracts are different than outright sports gambling and allow companies to bypass state regulators that have not legalized sports betting.
While many U.S. states have legalized sports betting, America’s most populous states, California and Texas, do not currently offer legal sports betting.
Still, sports betting, particularly through online platforms, is exploding in popularity.
Americans are expected to bet a record $30 billion U.S. on this year’s NFL football season, according to the American Gaming Association.
This past February, a record $1.39 billion U.S. was bet on the Super Bowl, the NFL’s championship game.
