Crypto.com has officially launched OG, a new standalone prediction markets platform designed to cater to the booming demand for sports event contracts and margin trading. This initiative comes just ahead of the Super Bowl and is part of the company’s ongoing expansion in the prediction markets arena, which has reported an astonishing 40-fold growth in weekly activity over the past six months.
Nick Lundgren, who serves as Crypto.com’s Chief Legal Officer, has been appointed as the CEO of OG. In a statement, Lundgren emphasized the firm’s pioneering position in offering federally regulated sports prediction contracts in the United States. He noted, “Launching OG is very fitting,” and believes the venture is well-positioned to tap into the multi-billion dollar industry, leveraging the company’s momentum and expertise.
The OG platform will operate under the umbrella of Crypto.com | Derivatives North America (CDNA) and will allow users to place bets not only on sports but also on financial, political, cultural, and entertainment events. To incentivize early adoption, the platform is offering rewards of up to $500 to the first one million users who register.
In addition to event contracts, OG plans to roll out margin trading capabilities, making it the first prediction markets platform to offer such features. This move is expected to further enhance its appeal to users seeking diverse investment opportunities. OG will also launch a VIP program, leveraging partnerships with major organizations including Crypto.com Arena, UFC, Formula 1, and UEFA Champions League.
However, the launch of OG comes amid legal challenges, as multiple states ramp up enforcement actions against various prediction platforms, including Crypto.com, Polymarket, Kalshi, and Robinhood. These platforms have been accused of operating unlicensed sports wagering ventures. States such as Connecticut, Tennessee, Michigan, and Illinois have already issued cease-and-desist orders against these companies, claiming jurisdiction over sports wagering operations.
In Nevada, the Gaming Control Board has initiated a civil enforcement action against Coinbase Financial Markets, aiming to block its event contracts. A state court has also issued a temporary restraining order against Polymarket, and regulators have taken action against Kalshi since March of last year. Despite these challenges, the platforms involved maintain that federal regulators should hold exclusive jurisdiction over their operations.
New York Attorney General Letitia James recently issued a consumer alert, addressing the potential risks associated with prediction markets. She characterized these platforms as offering bets disguised as event contracts, lacking necessary consumer protections and oversight from the New York Gaming Commission.
Currently, Crypto.com is appealing a Nevada federal district court’s decision to deny its preliminary injunction request, aimed at preventing the enforcement of state laws against its sports event contracts. As the company navigates this complex regulatory landscape, OG represents a strategic move to further solidify its position in a rapidly evolving market.
