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How Prediction Markets Transform Fans into True Stakeholders

General Report September 3, 2025
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TABLE OF CONTENTS

  1. The Resurgence of Sports Prediction Markets
  2. Direct Financial Participation and Incentives
  3. Leveraging Market Signals for Governance
  4. Enhancing Accessibility through Crypto Infrastructure
  5. Ongoing Initiatives and Community Engagement
  6. Conclusion

1. Summary

  • As of September 3, 2025, prediction markets are undergoing a significant transformation, evolving from niche trading platforms into influential mechanisms that enhance fan engagement and enable meaningful stakeholder inclusion. This shift is largely facilitated by the advent of new technologies and regulatory frameworks that bolster the legitimacy of these markets. Supporters can now actively participate in trading game outcomes while also expressing their preferences, thereby obtaining financial stakes that impact not just their investments but also the strategic directions of teams and leagues. The dynamic interplay between traditional sports betting and modern financial technologies has catalyzed a renaissance in prediction markets, attracting major platforms such as Robinhood and Polymarket. These platforms increasingly enable fans to assume a financial role in sports ecosystems, which further amplifies public dialogue regarding their efficacy and future potential. Moreover, ongoing partnerships, such as those between Underdog and Crypto.com, align with regulatory efforts designed to enhance transparency and reliability, setting the stage for the mainstream acceptance of prediction markets.

  • Importantly, the growing demand for crypto-to-fiat capabilities is reshaping market access, enabling broader participation across various regions where traditional sports betting faces legal limitations. Recent launches of regulated offerings, specifically targeting major leagues like the NFL and NBA, exemplify this trend. Consequently, as the fan base becomes more vested in their teams through financial mechanisms, the analysis of market signals and fan tokens is ushering in a new era of direct governance engagement. The integration of such mechanisms encourages fans to partake in decision-making processes within sports organizations, thereby fostering a robust sense of community ownership. As we look at the current landscape, events like the Chiliz hackathon signify a commitment to enhancing token utility and leveraging decentralized finance, propelling stakeholders towards more interactive and democratic sports models.

2. The Resurgence of Sports Prediction Markets

  • 2-1. Return of prediction markets in headlines

  • Prediction markets have re-entered the public consciousness and media narratives, currently enjoying a resurgence as various platforms including major exchanges and new crypto-native startups are positioning themselves within this space. The recent article published on August 31, 2025, highlights that the ongoing momentum has led to considerable public dialogue, suggesting a potential shift in how these markets operate and are perceived. Key players like Robinhood and Polymarket are aggressively expanding their offerings, thus enabling broader user engagement and participation in market predictions for a variety of sectors, including sports.

  • 2-2. Major players entering the space

  • The entry of significant players into the prediction market landscape marks a pivotal moment. Coinbase’s strategic decision to dive into this field positions it as a frontrunner in what is being termed the 'Everything Exchange.' Polymarket has extended its capabilities through the acquisition of a regulated exchange, QCEX, enhancing its service offerings, especially in the U.S. market. This influx of established companies reflects a growing confidence in the potential of prediction markets and their ability to engage users by tying financial participation to real-world events. Notably, activities in this domain are not merely transactional; they facilitate user sentiment and interaction, transforming fans into active stakeholders.

  • 2-3. Platforms and regulatory alignment

  • As prediction markets gain traction, regulatory scrutiny is also increasing. The CFTC has begun implementing tools such as Nasdaq’s Market Surveillance platform, aiming to ensure transparency and integrity within these markets. This aligns with the interests of both regulators and users as it promotes trust and mitigates the risks of manipulation and wash trading. The interplay between regulatory frameworks and the operational strategies of platforms like Robinhood and Polymarket will be crucial in shaping the future landscape of prediction markets. Such measures are intended to help them scale into reliable and sustainable sources of information, addressing the skepticism that has historically accompanied these ventures.

3. Direct Financial Participation and Incentives

  • 3-1. Regulated offerings by Crypto.com and Underdog

  • In a significant advancement for the sports betting industry, on September 2, 2025, Underdog and Crypto.com officially launched a regulated sports prediction market. This partnership aims to enhance the betting experience for users by making Crypto.com Derivatives North America's (CDNA) sports event contracts available on Underdog’s platform. The market includes predictions on outcomes across major sports leagues such as the NFL, NBA, and college football, thus providing fans with a reliable and legal avenue for financial participation in sports events.

  • The launch signifies an important step towards mainstream acceptance of prediction markets, blending elements of traditional sports betting with modern financial trading. Jeremy Levine, CEO of Underdog, emphasized the potential of prediction markets within the sporting landscape, stating that this is a crucial development that allows fans to engage financially with their favorite teams and events. By offering a regulated environment, this initiative aims to attract a wider audience, particularly in states where traditional sports betting remains contentious or illegal.

  • 3-2. Robinhood’s football market launch

  • Robinhood's announcement of plans to launch a prediction market focused on professional and collegiate football games highlights a growing trend in fan engagement within the sports industry. This initiative is particularly notable within the context of the ongoing evolution of financial technologies aimed at enhancing user participation in sports. As of late August 2025, Robinhood is poised to enter this competitive landscape, joining other key players like Crypto.com and Underdog, and affirming the relevance of blockchain-based platforms in transforming fan experiences.

  • Industry experts, including James Newman from Chiliz, suggest that Robinhood's move represents a shift where fans are no longer just passive observers but are being encouraged to participate actively in financial realities tied to sports outcomes. This evolution underscores the importance of integrating ethical considerations with innovative technologies to maintain a balance between fan engagement and responsibility. Robinhood’s entry into the prediction market field is perceived as a critical step for the company in carving out a sustainable niche that emphasizes continuous, meaningful connections with fans.

  • 3-3. Expanding market access across U.S. states

  • The introduction of regulated sports prediction markets, including those by Crypto.com and Underdog, specifically targets states where legal sports betting has not been fully adopted. As such, this development could potentially reshape access to prediction markets across the United States. The sports betting industry is facing challenges in specific regions, notably in populous states like California and Texas, where legal restrictions hinder traditional betting mechanisms.

  • As of September 2025, it is estimated that the sports prediction market could achieve considerable revenue growth, with projections reaching approximately $555 million for the year. This expansion is likely to improve fan engagement, create new opportunities for sports enthusiasts to participate financially, and drive innovation across the sports and fintech sectors. Stakeholders are keenly observing how these changes will influence the legal landscape surrounding sports betting and prediction markets, especially in the context of ongoing regulatory discussions about the classification of these new offerings.

4. Leveraging Market Signals for Governance

  • 4-1. Fan tokens as feedback mechanisms

  • Fan tokens have emerged as pivotal instruments for fostering direct engagement between sports teams and their supporters. These tokens allow fans to participate in various club-related decisions, acting as feedback mechanisms that inform governance practices within sports organizations. For instance, holders of fan tokens can exert influence over club decisions through mobile platforms that facilitate voting on issues such as jersey designs, promotional events, and player signings. This participation promotes a sense of ownership and investment in club operations, ultimately enhancing community ties and engagement levels.

  • 4-2. Token-based voting on club initiatives

  • The introduction of token-based voting systems has revolutionized how clubs engage with their fan bases. Fans using these tokens can cast votes to influence initiatives that matter to them, ranging from strategic decisions to community outreach programs. This mechanism not only empowers fans but also provides clubs with invaluable data regarding supporter preferences, making it easier to align decisions with fan expectations. As clubs increasingly adopt such models, insights drawn from voting patterns can refine governance strategies, ensuring clubs remain responsive and aligned with their community's values.

  • 4-3. Integrating sentiment data into decision-making

  • Integrating sentiment data gathered from fan tokens into decision-making processes is another significant advancement in sports governance. By analyzing data from fan engagement and voting activities, clubs can better understand the collective mood of their supporter base. Such insights can guide clubs in making informed decisions that resonate with fans, fostering loyalty and sustained enthusiasm. As this practice becomes standard, we can expect to see a more dynamic relationship between clubs and fans, where governance is not merely dictated from the top down but is an evolving dialogue that incorporates feedback directly from the community.

5. Enhancing Accessibility through Crypto Infrastructure

  • 5-1. Growing Demand for Crypto-to-Fiat Capabilities

  • The demand for crypto-to-fiat capabilities has experienced a significant surge, driven by the growing interest in cryptocurrencies from both consumers and businesses. As noted in a recent report, the number of crypto users worldwide surpassed 560 million in 2024, indicating a substantial audience eager for ways to convert their digital assets into traditional fiat currencies. This shift has prompted digital banks and neobanks to treat crypto-to-fiat integration not merely as an optional feature, but as a core component of their service offerings.

  • This evolving landscape presents a unique opportunity for financial institutions to enhance their customer reach and diversify their revenue streams. By offering seamless crypto-to-fiat services, these institutions can facilitate real-world usage of cryptocurrencies, allowing customers to make everyday purchases with their digital assets. This capability can significantly influence user adoption rates, as customers increasingly expect banks to accommodate their growing interest in cryptocurrencies.

  • 5-2. Seamless On-Ramp and Off-Ramp Solutions

  • Seamless on-ramp and off-ramp solutions provide crucial pathways for crypto users to transact with traditional currencies effectively. Digital wallets and crypto debit cards are at the forefront of this infrastructure, enabling automatic conversions at the point of sale or for online purchases. These innovations not only simplify transactions for everyday users but also reduce barriers that may deter potential crypto adopters.

  • The integration of real-time exchange rates and compliance features such as built-in KYC/AML protocols enhances the security and reliability of these transactions. Furthermore, platforms like SDK.finance are addressing the complexities involved in establishing these crypto-to-fiat infrastructures, offering tools that support both fiat and digital assets on the same ledger. This enables institutions to launch crypto-to-fiat applications quickly and effectively, streamlining the process and minimizing development risks.

  • 5-3. Impact on User Adoption

  • The establishment of effective crypto-to-fiat capabilities is set to have a profound impact on user adoption in the cryptocurrency ecosystem. As digital banking systems increasingly incorporate these features, user confidence is likely to grow, paving the way for broader acceptance of cryptocurrencies in everyday transactions. This transition from speculative trading to practical application is crucial for the long-term viability of crypto assets.

  • Moreover, as digital banks facilitate easy conversions from crypto to fiat, they position themselves strategically against competitors by catering to a more extensive demographic of crypto holders. This competitive edge is critical as more institutions recognize the shift from traditional banking to digital assets, making crypto-to-fiat functionalities not just an added feature but a fundamental aspect of banking in the digital age.

6. Ongoing Initiatives and Community Engagement

  • 6-1. Chiliz hackathon driving token utility

  • As of September 3, 2025, Chiliz has initiated the Hacking Tricolor hackathon, which is a collaborative event aimed at boosting the utility of its fan tokens and integrating decentralized finance (DeFi) applications. This hackathon, which runs from September 3rd to 11th, combines both online and in-person formats, promoting community involvement and innovation. During this event, developers and enthusiasts will work on projects powered by the São Paulo FC (SPFC) token, further emphasizing the practical application of blockchain technology in enhancing fan engagement.

  • The final presentations will occur at Morumbi Stadium on September 10-11, showcasing innovations that reflect the interests and preferences of the fan base. This initiative not only aims to foster the development of applications that contribute to the ecosystem but also reinforces Chiliz's commitment to enabling fan-led decision-making through token ownership.

  • 6-2. Developer collaborations for fan applications

  • The hackathon is set against a backdrop of increasing developer collaboration within the blockchain and sports sectors. By engaging with skilled developers and innovators, Chiliz is focused on fostering the creation of new fan applications that leverage its token infrastructure. These applications are anticipated to provide enhanced features for fans, potentially including improved voting mechanisms, greater access to exclusive content, and dynamic engagement strategies.

  • Through such collaborations, Chiliz is not only amplifying participation but also ensuring that its offerings are aligned with user preferences, emphasizing community-driven development. This approach is critical for maintaining relevance and vibrant interaction within the rapidly evolving landscape of sports tokenization.

  • 6-3. Future-proofing platforms through community input

  • Community input is vital for the evolution of platforms like Chiliz, especially as they aim to grow and adapt in response to user needs. The current initiatives underline a strategic focus on future-proofing their services by incorporating direct feedback from the community of users. This engagement is integral to ensuring that developments align with fan expectations and contribute to meaningful experiences.

  • Mechanisms for incorporating community feedback may include surveys, voting, and active participation in the development process, all of which empower fans to have a say in the evolution of the platforms they utilize. As the market for fan engagement continues to shift, such community-oriented strategies will likely play a pivotal role in shaping successful governance and operational models for prediction markets.

Conclusion

  • As the current state of prediction markets demonstrates, they have transitioned from being avenues of passive speculation to dynamic platforms that fundamentally reshape fan participation in sports. They provide transparent financial stakes, real-time governance signals, and integrate seamlessly with cryptocurrency, effectively granting supporters genuine ownership experiences within their favorite teams and leagues. Crucially, it is essential for stakeholders to actively cultivate robust regulatory frameworks that protect users while fostering innovation, invest in user-friendly crypto-to-fiat infrastructures that enhance access, and design governance structures that are tailored to encourage long-term engagement among fans.

  • Looking towards the future, the roles of hackathons, tokenized voting systems, and strategic partnerships will play an increasingly vital part in strengthening the relationships between fans and stakeholders. These developments will be pivotal in shaping the direction of sports ecosystems, ensuring that they not only accommodate but also thrive on the active participation of fans. By integrating feedback from the user community and adapting to their needs, prediction markets can continue to evolve, not merely serving as platforms for speculation but as integral components in the governance and operational frameworks of sports organizations. This alignment of interests will likely result in a more engaged, invested, and vibrant community of fans, thus paving the way for a more inclusive future in sports.

Glossary

  • Prediction Markets: Prediction markets are platforms where individuals can buy and sell contracts based on the outcome of future events, commonly seen in contexts like sports or elections. As of September 3, 2025, these markets are evolving to facilitate greater engagement by fans, allowing them to stake financial interests and influence team decisions, thus transforming from mere speculative venues to active participatory spaces.
  • Fan Tokens: Fan tokens are digital assets issued by sports organizations that empower fans to participate in club decisions, like voting on initiatives that matter to them. These tokens foster a sense of ownership, enabling fans to engage directly in the governance of their teams. As of September 2025, fan tokens are integral in enhancing community ties within sports organizations.
  • Crypto-to-Fiat: Crypto-to-fiat refers to the ability to convert cryptocurrency into traditional fiat currency, which has gained importance as interest in cryptocurrencies expands. By September 2025, significant demand for these capabilities reflects a shift in consumer behavior, with financial institutions increasingly prioritizing seamless integration methods to facilitate everyday transactions.
  • Market Signals: Market signals are indicators derived from trading activities that reflect the sentiments and preferences of participants in prediction markets. They serve as valuable insights for stakeholders and teams, allowing a dynamic interpretation of fan engagement and support for various decisions made by sports organizations.
  • Chiliz: Chiliz is a blockchain-based platform known for creating fan engagement solutions through tokens. As of September 2025, it has initiated innovative projects, such as the Hacking Tricolor hackathon, which aims to enhance fan token utility and incorporate decentralized finance solutions into sports engagement.
  • Underdog: Underdog is a sports prediction market platform that has partnered with Crypto.com to launch regulated offerings. Their recent developments aim to enhance financial participation by fans in sports events, as evidenced by their official market launch on September 2, 2025.
  • Governance: In this context, governance refers to the systems and practices through which fans and stakeholders influence decision-making processes within sports organizations. The introduction of fan tokens and voting mechanisms aids in democratizing governance, ensuring that club operations align more closely with supporter preferences.
  • Robinhood: Robinhood is a financial services platform that has recently announced plans to enter the prediction market space, particularly focused on football. As of late August 2025, this move highlights the platform's commitment to enhancing fan engagement and offering innovative financial tools tailored to sports enthusiasts.
  • Regulatory Framework: Regulatory frameworks refer to the set of rules and guidelines established by governing bodies to oversee prediction markets and ensure their integrity. As of September 2025, there is an ongoing effort to develop robust regulations that promote transparency and trust in these markets, critical for mainstream acceptance.
  • Seamless On-Ramp and Off-Ramp Solutions: These solutions facilitate the easy exchange of cryptocurrencies for fiat currencies. They are increasingly essential for enhancing user adoption by allowing straightforward transactions in everyday purchases. As of September 2025, advancements in this area are linked to the growing integration of crypto functionalities in digital banking.
  • Decentralized Finance (DeFi): Decentralized Finance (DeFi) refers to financial services that operate on blockchain technology without central authority, allowing direct peer-to-peer transactions. DeFi applications are increasingly being integrated into sports engagement platforms, fostering community-driven innovations and enhancing user participation.

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