Onyx Odds raises $20M led by Kraken parent Payward to scale

Onyx Odds, a social sports prediction platform, has raised $20 million in a funding round led by Payward, the parent company of crypto exchange Kraken. The New York-based startup previously raised $8.3 million from Velo Partners and Xfund in March 2025. It now operates in more than 30 US states.

Onyx Odds is not a traditional sportsbook. The platform uses a sweepstakes model built around virtual Onyx Coins, letting users predict sports and real-world events without the licensing required for gambling operations. That structure allows it to operate across 30-plus states without the years-long approval processes that DraftKings and FanDuel faced.

The company said user numbers have reached into the hundreds of thousands, though it did not disclose active users or revenue. The new round is roughly 2.4 times the size of the first raise.

In November 2025, Onyx Odds announced an exclusive partnership with Polymarket, the blockchain-based prediction market. The deal makes Polymarket the exclusive provider of certain regulated prediction contracts through Onyx Odds, the companies said. Polymarket became a cultural phenomenon during the 2024 US presidential election cycle. For Onyx Odds, the partnership brings access to a well-known brand in prediction markets.

The prediction market sector has drawn venture capital since the 2024 election. Onyx Odds differentiates itself by offering a compliant sweepstakes structure rather than a crypto-native exchange. Payward, the parent of Kraken, has invested in several crypto-adjacent businesses, and the Onyx Odds deal marks its first known bet on a prediction platform.

Sweepstakes models have drawn increased scrutiny from state attorneys general. Any tightening of rules could force Onyx Odds to change its business model. For now, the company benefits from a lighter regulatory burden than traditional sportsbooks. Onyx Odds said it plans to use the new capital to expand its user base and product offerings.