Onyx Odds raises $20 million as sports prediction market competition intensifies

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Onyx Odds raises $20M

Highlights

Onyx Odds raised $20 million in a Series A round led by Payward, parent of Kraken, less than two years after launch.
Onyx Odds faces entrenched competitors like Kalshi, now valued at $22 billion after a $1 billion raise, and Polymarket, amid expanding offerings from Coinbase, Gemini, and Meta.
US prediction markets, including Onyx Odds, face uncertain regulatory environments with the CFTC under Chair Michael Selig asserting exclusive jurisdiction and ongoing legal debates over oversight.

Funding round and expansion timeline

As reported by The Block, Onyx Odds says Payward, the parent company of crypto exchange Kraken, leads the Series A financing round announced on Wednesday. The companies say the fundraising comes less than two years after the app launched and less than one year after it emerged from beta.

The new capital gives Onyx Odds additional backing as it tries to scale in a crowded prediction markets segment. The company lets users wager on sports outcomes, placing it at the intersection of sports betting, derivatives-style products and crypto-linked financial services.

Competitive and regulatory pressure builds

Onyx Odds enters a market where Kalshi and Polymarket already hold strong name recognition and market presence, helped in part by aggressive marketing. Kalshi recently reached a $22 billion valuation after raising $1 billion, underscoring the scale gap newer entrants must confront.

Several crypto exchanges, including U.S.-based Kraken rivals Coinbase and Gemini, have also launched prediction market offerings as they push further into derivatives and other forms of betting. Meta is also targeting a launch of prediction market capabilities, adding another potential large-scale competitor.

At the same time, prediction markets in the U.S. face legal challenges and concerns over insider trading. A central issue in the ongoing debate is whether sports-focused prediction markets should be regulated at the state or federal level, while the Commodity Futures Trading Commission under Chair Michael Selig argues that the agency has exclusive jurisdiction over the sector.

Our earlier coverage of CME Group’s lawsuit against the CFTC focused on the regulator’s approval of bitcoin-linked perpetual contracts and the dispute over whether these products should be treated as swaps or futures. We noted that the case puts Chair Michael Selig and the CFTC’s jurisdictional approach under scrutiny and could reshape how quickly exchanges bring new crypto-linked derivatives and prediction-style products to the U.S. market.

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