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Underdog has partnered with Crypto.com’s U.S. derivatives arm to allow customers to wager on sporting leagues through event contracts, the companies announced last week.
The partnership represents a significant shift in how Americans can engage with sports betting, blending traditional wagering with cryptocurrency-based trading mechanisms that could make betting feel more like stock market investing.
The contracts will allow users to trade across all major sports leagues, including the NFL, college football, the NBA and the MLB. Unlike traditional sports betting where users place a single wager and wait for an outcome, event contracts function more like financial derivatives, allowing bettors to buy and sell positions before games conclude.
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This approach mirrors how traders might buy and sell stock options based on changing market conditions. For sports bettors, it means they can potentially lock in profits or cut losses as games unfold, rather than being locked into a single outcome.
The timing of this partnership aligns with the NFL season kicking off and college football in full swing, positioning both companies to capture significant market share during peak betting season.
Crypto.com’s involvement brings sophisticated financial infrastructure to what has traditionally been a straightforward gambling proposition. The platform’s derivatives arm specializes in complex financial products that allow for more nuanced betting strategies.
Event contracts could appeal to a new demographic of sports fans who view themselves as traders rather than traditional gamblers. This distinction matters both culturally and potentially from a regulatory standpoint, as trading-based products often face different oversight than traditional gambling.
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For Crypto.com, the partnership is another step in its expansion into mainstream financial services. The company has been aggressively pursuing partnerships and sponsorships, including its naming rights deal for the former Staples Center in Los Angeles.
Traditional sports betting has largely remained unchanged despite its rapid legalization across U.S. states. Most platforms still operate on the simple model of placing a wager and waiting for results. Event contracts introduce dynamic pricing and the ability to exit positions early, concepts familiar to anyone who has traded stocks or options.
This model could prove particularly attractive during long-term bets, such as season-long MVP odds or championship futures. Instead of locking money into a position for months, bettors could adjust their exposure as player performance and team dynamics change throughout a season.
The partnership also comes as younger demographics increasingly view investing and trading as entertainment. The same generation that made GameStop (NYSE:GME) and meme stocks mainstream might find sports event contracts more appealing than traditional betting formats.
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The sports betting industry has exploded since the Supreme Court’s 2018 decision to overturn the federal ban on sports wagering. However, most states still treat sports betting as gambling rather than financial trading, which could create regulatory complexity for event contracts.
The success of this partnership could influence how other major sports betting platforms approach product innovation. If event contracts gain traction, expect competitors to develop similar offerings that blur the lines between betting and trading.
For investors watching the space, this partnership signals continued consolidation between traditional sports betting companies and cryptocurrency platforms. As both industries mature, these crossover products could become the norm rather than the exception.
The move positions both Underdog and Crypto.com to capture market share from traditional sportsbooks that haven’t innovated beyond basic wagering formats. Whether American sports bettors embrace this trading-style approach will ultimately determine if this partnership represents the future of sports wagering or simply another betting option in an increasingly crowded market.
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This article This Sports Betting Contender Just Made Crypto Trading Feel Like Fantasy Football—And It Could Change How Americans Bet on Games originally appeared on Benzinga.com
