Fantasy and sports gaming operator Underdog is partnering with Crypto.com to offer sports prediction markets in 16 states, mostly focused on where legal sports betting has not been adopted, the companies told CNBC on Tuesday.

"Prediction markets are one of the most exciting developments we've seen in a long time, " Underdog founder and CEO Jeremy Levine said on CNBC's "Worldwide Exchange" Tuesday. "While still new and evolving, one thing is clear -- the future of prediction markets is going to be about sports -- and no one does sports better than Underdog."

Underdog is the first sports gaming platform to enter the new and rapidly expanding prediction market industry, which is a modern chimera of financial trading and sports betting: Traders buy and sell the outcome of sporting events,

See Full Page