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Investing.com -- European betting and gambling shares fell on Tuesday after a report said Crypto.com and Underdog Sports are preparing to launch sports prediction markets in the U.S.
According to a report from CNBC, the two companies aim to roll out their platform across 16 states, focusing on areas where legalised sports betting has not yet been adopted.
The move marks Underdog’s first step into the growing prediction market sector, in which traders can buy and sell contracts tied to the outcome of sporting events, with odds shifting as markets move.
Shares in Entain are down close to 5%, while online casino technology provider Evolution slid 4.4%.
Flutter Entertainment’s London-listed stock is only marginally lower, though its U.S.-listed shares are down 2.9% in premarket trading. DraftKings, in which Flutter holds a stake, is 1.2% lower ahead of the market open.
The report noted that the partnership could heighten competitive pressure in a sector already adjusting to rapid digitalisation and shifting regulation.
Other firms, including Robinhood, Kalshi and Polymarket, are also offering contracts tied to sporting events, highlighting the growing crossover between financial trading and sports betting.
A Bloomberg report noted that Underdog is the first sports gaming platform to directly enter the prediction market space, a fast-expanding niche that sits at the intersection of wagering, data analytics and blockchain technology.