Crypto.com Announces Sports Event Trading Product Available To US Customers

Crypto com arena in Los Angeles
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Crypto.com, billing itself as cryptocurrency’s “industry leader in regulatory compliance, security and privacy,” has announced it is launching a sports event trading product.

This move will be, “allowing U.S. users of Crypto.com and the Crypto.com app nationwide to participate and trade their own prediction on the outcome of sports events, including the Super Bowl.”

The Commodity Futures Trading Commission (CTFC)-regulated exchange, now available on the Crypto.com website, currently allows people to make predictions on which teams will or won’t win the upcoming Super Bowl. Users can invest either US currency or Bitcoin to effectively vote “yes” or “no.”

Kris Marszalek, co-founder and CEO of Crypto.com, said in a press release statement:

Sports Events Trading offers an entirely new platform for U.S. users to engage nationwide at Crypto.com and in the Crypto.com app. This unique financial product allows users to trade their prediction on the outcome of a sports event. It’s a fundamentally new concept for sports, and we’re thrilled to be the first regulated platform in the U.S. to offer it to our users.

This decision has caught the attention of the sports betting world. Crypto.com’s trading markets skirt regulatory issues other legalized online sportsbooks have in states. There could be pushback ahead from lawmakers and sportsbook operators.

Will sports trading markets meet regulator pushback?

Chris Grove, writing on X (formerly Twitter), observed that sports events trading is a “rudimentary” product compared to what sports betting and online casino giants like DraftKings and FanDuel can offer its users in states where sports betting is legal.

However, he pointed out that “the incoming administration appears both crypto-friendly and to believers in the intrinsic value of prediction markets.” 

He believes, as a result, that “a fundamental CFTC shift is not just possible, but arguably probable.” Thus, allowing Crypto.com’s sports event trading to be an alternative to online sports betting.

Grove concluded, in his assessment,

CFTC-enabled sportsbooks will keep trying to find ways to compete in the US market. And I believe CFTC-enabled sportsbooks are likely to surmount the immediate hurdles to getting a foothold in the market. The competitive threat is real.

Some form of sports betting is legal in 38 states plus the District of Columbia. Missouri is moving to online options next year after a sports betting initiative narrowly passed in last month’s voting. California and Texas —with nearly 70 million people combined — are among the 11 states that do not allow sports betting. Crypto.com’s offering would allow for a more regulated legal experience than other options people currently pursue.

An article in The Guardian noted that two-thirds of bets in last year’s Super Bowl, or 228.2 million out of 350.5 million, were made on illegal platforms, per gambling analysis firm Yield Sec. Though the American Gaming Association disputed those figures, arguing that 77% of Super Bowl bets were made legally, that still leaves nearly one in four bets made outside of legal avenues.

Sports trading comes off success of US election markets

The announcement follows from Crypto.com’s March 2023 decision to offer its first-ever CFTC-regulated crypto derivatives product, UpDown Options. That move allows “users the ability to potentially profit by forecasting how a coin’s price will move.” Users opt on whether to buy a long position believing a coin’s value will increase, or a short position if believing it will decrease.

The Crypto.com service is reminiscent of Polymarket, which according to its site, allows users to “buy and sell shares representing future event outcomes.” However, following a CFTC ruling in January 2022, Polymarket has blocked access to US-based customers. However, it still includes US events like the most recent presidential election among its events.

Robinhood, a commission-free stock-trading app got into the US presidential election markets. It was available to US customers using a similar format to Crypto.com’s sports event markets. Kalshi and PredictIt, two other predictions market provider, also were involved in the US election after getting a favorable court decision against the CFTC.

Crypto.com also has delved into sports sponsorship as the naming sponsor for Los Angeles’ basketball arena (home to the NBA’s Lakers and Clippers and WNBA’s Sparks). It also serves as a principal sponsor for the NBA’s Philadelphia 76ers, and recently announced PGA Tour event sponsorship as well. Crypto.com also has partnerships with F1, UFC, and the UEFA Champions League soccer tournament.

The current Crypto.com Super Bowl trading market features “winners” identified only by cities and team colors. The Feb. 9, 2025, contest is merely referred to as “The Big Game.” Current market numbers have the Kansas City Chiefs, Detroit Lions and Buffalo Bills with the highest value to win the NFL’s championship.

 

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