A groundbreaking partnership has emerged between Underdog and Crypto.com’s U.S. derivatives division, redefining the landscape of sports betting for American users. Announced recently, the collaboration will allow customers to engage in betting on various sports leagues through innovative event contracts, a move that blends conventional wagering techniques with cryptocurrency trading strategies.
This development signifies a notable transition in how sports betting can be approached in the U.S. While traditional betting involves placing a singular wager and awaiting the results, event contracts operate similarly to financial derivatives. This allows bettors to buy and sell their positions even as games progress, reminiscent of stock market trading.
Users will have the ability to trade across major sports leagues, including the NFL, college football, the NBA, and MLB. The nature of event contracts aims to mimic stock options trading, enabling bettors to manage their investments dynamically. This means they can secure profits or mitigate losses mid-game rather than commit to a single outcome from the outset.
The timing of this announcement is particularly strategic, coinciding with the start of the NFL season and the ongoing college football games, positioning both companies to tap into a lucrative market during peak betting times. Crypto.com’s involvement is noteworthy, as it integrates more sophisticated financial tools into a sector that’s traditionally operated on simpler gambling principles. Their derivatives arm specializes in complex products, which could foster more intricate betting strategies for consumers.
This novel method of betting could attract a demographic of sports fans who consider themselves more as traders than traditional gamblers. The cultural shift may also have implications for regulatory oversight, as trading products often encounter different regulations compared to gambling offerings.
For Crypto.com, this collaboration represents further expansion into mainstream financial services. The company has been actively pursuing partnerships, highlighted by its naming rights agreement for the former Staples Center in Los Angeles. Traditional betting methods have seen minimal evolution, despite the rapid legalization of sports betting across numerous states. Event contracts promise to introduce dynamic pricing and allow users to exit positions before completion—a concept familiar to stock market participants.
The appeal of this model is particularly significant for long-term bets, such as MVP odds or championship futures. Bettors can adjust their stakes in response to shifting team dynamics or player performances, rather than being locked into fixed positions.
As younger generations increasingly fuse investing and entertainment, this new approach to sports betting aligns with their interests. The same demographic that popularized meme stocks may find this trading-style betting more engaging compared to traditional methods.
Despite the rapid growth of the sports betting industry following the 2018 Supreme Court decision that lifted the federal ban, most states continue to classify sports betting as gambling. This distinction may present regulatory challenges for event contracts, but the success of this partnership could set a precedent for innovation in the industry. If event contracts gain traction, other large sports betting platforms may feel compelled to introduce similar products that blend betting with trading principles.
For industry investors, this partnership signals a trend toward further integration between traditional sports wagering and cryptocurrency platforms. As both sectors evolve, crossover products like these could become commonplace, allowing Underdog and Crypto.com to capture market share from traditional sportsbooks that have not kept pace with innovation. Ultimately, the acceptance of this trading-style betting by American sports bettors will determine if this partnership marks a pivotal moment in the future of sports wagering or simply adds another layer to an already crowded marketplace.
