Crypto.com Sports Betting Exchange Launches in All 50 States
Crypto.com has launched sports prediction markets for customers nationwide. These markets allow users to trade contracts on the outcomes of upcoming sporting events.
In the final days of 2024, Crypto.com debuted its first sports prediction market: yes/no contracts on each remaining NFL team to win the Super Bowl.
Crypto.com has launched additional NFL and college football markets since then, allowing fans to trade prediction contracts on major events like the AFC/NFC Championships, the CFP National Championship, the Orange Bowl, and the Cotton Bowl.
Crypto.com’s expansion into sports prediction markets is a significant development in multiple respects, including its implications for the legal US sports betting industry.
Most notably, this will be the first year ever that NFL fans in all 50 states will have the opportunity to (essentially) bet on the Super Bowl online with a legal and US-licensed operator.
Crypto.com CEO and co-founder Kris Marszalek put it this way in a 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.”
How the Crypto.com Sports Exchange Works
The Crypto.com exchange allows users to trade yes/no contracts that represent predictions on upcoming sporting events:
- If you believe an outcome will occur, select the “Yes” button to buy contracts on that outcome at the current market price
- Buy and sell contracts until the sporting event begins
- All contracts expire at a value of $100 if they correctly predicted the outcome or $0 if not
- Users may have up to 2,500 open positions (contracts) per sporting event
How to Win Money on Crypto.com Sports Markets
There are two ways to profit from Crypto.com sports contracts:
- Buying a contract and selling it at a higher price before the event begins
- If you hold contracts until the event begins, you receive $100 per contract that correctly predicted the outcome
How to Lose Money on Crypto.com Sports Markets
Similarly, there are two ways to lose money trading sports event contracts on Crypto.com:
- Selling a contract at a lower price than you initially paid for the contract before the event begins
- If you hold contracts until the event begins, you receive $0 per contract that did not correctly predict the outcome
Crypto.com Sports Exchange Fees
Crypto.com charges flat fees totaling $1.99 per contract:
- $1.00 exchange fee
- $0.99 technology fee
How Are Crypto.com Super Bowl Predictions Legal?
Crypto.com’s sports event trading markets are legal nationwide because they do not constitute sports wagering and are not regulated as such.
Instead, they are derivative trading products regulated by the Commodity Futures Trading Commission (CFTC) as event contract swaps under the Commodity Exchange Act (CEA).
That said, Crypto.com is wading into uncharted territory with sports event trading markets.
Crypto.com was the first licensed exchange to offer derivative products based on sporting events because it comes so close to actual sports betting.
However, this development did not occur out of the blue. Crypto.com’s sports trading markets follow the successful rollout of election contract trading by trading platforms like Kalshi and Robinhood during the run-up to the 2024 US Presidential election.
That development occurred after a US federal appeals court ruled in favor of Kalshi in its suit against the CFTC, which had previously prohibited derivatives based on election outcomes.
Crypto.com submitted a product filing on December 19th, 2024, informing the CFTC of its intention to offer sports trading markets. Crypto.com’s sports markets launched a few days later, but the CFTC could still rule against them and demand that Crypto.com cease all election-based trading markets.
But for now, 2024 Super Bowl prediction markets are a go at Crypto.com.
Crypto.com Versus Sports Betting Exchanges
Crypto.com functions a lot like legal US sports betting exchanges.
For example, Sporttrade also offers sports contracts that expire at $0 or $100. However, Crypto.com’s sports markets differ from US sports betting exchanges in several critical aspects:
Is Crypto.com Legit?
Crypto.com is a legitimate trading platform used by 100 million+ users worldwide.
Additionally, Crypto.com | North American Derivatives Exchange is a CFTC-registered exchange. Its US credentials include:
- Broker-Dealer Registration via acquisition of Watchdog Capital (CRD#: 282331/SEC#: 8-69712)
- Derivatives Clearing Organization License (No. 38)
- Designated Contracts Market License (No. 34536)
- Money Services Business Registration (No. 31000272354498)
- Money Transmitter Licenses in 40+ States
Wes Burns has more than a decade’s worth of experience as a writer, researcher and analyst in the legal gambling industry and is co-founder of BettingUSA.com. As a former professional online poker player, Wes approaches his work from the viewpoint of players.
