Underdog Fantasy Announces Return Of New York Draft Games
Underdog Fantasy has officially relaunched its daily fantasy sports (DFS) offerings in New York after a two-month hiatus mandated by regulatory compliance. While the company is back in the market, not all its products are currently available. Notably, the against-the-house and peer-to-peer (P2P) variants of the Underdog pick’em game remain absent from the lineup.
In March of this year, Underdog exited the New York market and incurred an $18 million fine. The New York State Gaming Commission (NYSGC) identified certain games as unauthorized forms of sports wagering, asserting that they operated without a valid license.
Understanding Fantasy Sports vs. Sports Betting
Underdog previously obtained a temporary DFS license after acquiring Synkt Games in 2022. However, specific offerings like the pick’em product straddle the fine line between fantasy sports and traditional betting. To comply with regulatory standards in New Jersey and Delaware, the company has launched an updated version known as Champions pick’em. This variant avoids the “against-the-house” format, ensuring it adheres to the more stringent criteria governing DFS.
New York is transitioning from temporary to permanent licenses for DFS operators, and Underdog has submitted its application for such a designation. As of now, no formal communication has been released by the NYSGC regarding the status of their application.
Expressing a keen interest in expanding into the sports betting arena, CEO Jeremy Levine stated, “We want to be in sports betting—but we’re doing it the right way. If regulators categorize our pick’em product as betting, we’ll adjust by introducing our betting platform in compliance with those states.”
In Colorado and Ohio, the company has also filed for gambling licenses, with plans to pursue a sports betting license in Missouri as the state prepares to launch legal sportsbooks later this year.
Valuation and Industry Impact
In March, Underdog Fantasy secured $100 million in a Series C funding round led by Spark Capital, elevating its valuation to an impressive $1.2 billion. Levine emphasized the significance of this funding, stating, “This investment accelerates our strategic objectives. We are dedicated to developing top-tier products for sports enthusiasts and attracting elite talent to our team.”
Since its inception in 2020, Underdog has experienced substantial growth, boasting a player base of 4 million across the United States. The company ranks as the fourth most downloaded mobile sports betting or gaming application in the nation.
The fantasy sports market is projected to be valued at approximately $13 billion, with expectations of it nearing $15 billion by the following year. Given that New York reported record betting handles exceeding $2 billion in April—a historic milestone for any U.S. state—the market represents a significant opportunity for Underdog and its competitors.
The return announcement from Underdog has garnered positive responses, particularly as it coincides with the New York Knicks’ participation in the Eastern Conference Finals, signaling strong engagement from users eager for both fantasy and sports betting options.
Underdog’s strategic approach to navigating the evolving landscape of DFS and sports betting showcases their commitment to compliance and innovation, ensuring that they not only remain a player in this competitive market but also foster growth and engagement within the sports community.
Adam Roarty is a seasoned writer with extensive knowledge in the gambling industry. With five years as a content writer and editor at prominent platforms such as Oddschecker, CoinTelegraph, and Gambling Industry News, he brings a wealth of expertise in sports betting and online gaming.
