TL;DR
- Funding Round: Onyx Odds raised $20 million in a Series A led by Payward, valuing the sports‑focused prediction markets app at $220 million.
- Market Positioning: The prediction App faces strong competition from Kalshi and Polymarket, but aims to stand out by offering exchange‑traded sports instruments and integrating crypto trading.
- Regulatory Climate: U.S. prediction markets continue to confront legal uncertainty, with the CFTC asserting jurisdiction. Onyx Odds must navigate these challenges.
Onyx Odds has secured $20 million in fresh capital after closing a Series A round led by Payward, the parent company of Kraken. The companies said the investment arrived less than two years after launch and under a year since the app exited beta, placing the valuation for Onyx Odds at $220 million. The platform, which allows users to wager on sports outcomes, is positioning itself for a larger role in the fast‑moving prediction markets sector.
Growing Ambition in a Competitive Prediction Markets Landscape
Onyx Odds enters a field already shaped by major players such as Kalshi and Polymarket, both of which have built strong brand recognition through aggressive marketing. Kalshi recently reached a $22 billion valuation after raising $1 billion, underscoring the scale of competition Onyx Odds must navigate. The rise of prediction markets has also attracted attention from crypto exchanges like Coinbase and Gemini, as well as Meta, which is exploring its own prediction‑driven features across its social platforms. Against this backdrop, Onyx Odds aims to differentiate by focusing tightly on sports outcomes and exchange‑traded instruments. The companies said the app offers a market‑driven way for users to engage with sports events, a positioning that could help Onyx Odds carve out a distinct niche.
Payward Integration and Crypto‑Enabled Expansion
As part of the investment, Onyx Odds will integrate with Payward Services, the B2B infrastructure powering Kraken and the broader Payward product suite. This integration will bring crypto trading directly into the Onyx app, expanding its functionality and aligning it more closely with Kraken’s global footprint. Kraken says it serves more than 15 million users across over 190 countries, giving Onyx Odds a potential distribution advantage as it scales. Mark Greenberg, Head of Payward Services, highlighted the combined regulatory and exchange capabilities behind the partnership, noting that Payward brings a CFTC‑registered FCM, a CFTC‑designated DCM, and a global crypto exchange under one roof.
Regulatory Headwinds and the Future of Sports Prediction Markets
Prediction markets in the U.S. continue to face legal scrutiny, particularly around insider trading concerns and questions over whether sports‑based markets should fall under state or federal oversight. CFTC Chair Michael Selig has argued that the agency holds exclusive jurisdiction over prediction markets and has positioned himself as a supporter of their development. For Onyx Odds, navigating this regulatory environment will be as important as product innovation, especially as the platform expands its sports‑focused offerings.
