Fantasy sports operator Underdog Fantasy has announced that it raised $35 million in its latest round of fundraising resulting in a company valuation of $485 million.
Company hopes to launch first sports betting product in Ohio on January 1st, 2023
The series B round of fundraising saw investment from multinational investment firms including BlackRock and Acies Investments joining existing investors Mark Cuban, Kevin Durant, Trae Young, Odell Beckham Jr., and Breon Corcoran (ex-CEO Paddy Power Betfair/Flutter) among others.
In a press release announcing the latest investment milestone, the company also revealed that it is preparing to enter the highly competitive US sports betting market.
According to company founder Jeremy Levine, the company hopes to leverage its existing fantasy sports players into full-time sports bettors. In the release, Levine said:
“Since the start of Underdog we’ve believed that building quality products and putting customers first is a winning recipe. We’re excited to continue to innovate and build new experiences from the ground up in fantasy, sports betting, and adjacent spaces.
This funding round gives us the fire power to continue to build, and build we will. We’re thrilled that funds and accounts managed by BlackRock are participating in our Series B as we continue towards our vision. Our players, and players of the future, are going to be delighted by the experiences they’ll be able to enjoy exclusively on the Underdog platforms.”
Chris Grove from Acies Investments added:
“While the typical sportsbook is spending over $500 to acquire a customer, Underdog is bringing in new users for a fraction of that. Underdog’s product is leading to competitive advantages as Underdog’s customer acquisition and retention success is best in class. Underdog’s success is driven by the company’s focus on building new, innovative games and delivering amazing customer experiences. As the company moves into licensed sports betting, I believe that the unique focus on product and experience will reshape the industry.”
Underdog Fantasy is currently available in every state with the exception of Connecticut, Hawaii, Idaho, Nevada, Louisiana, Montana, Washington, Delaware and Iowa.
Underdog recently partnered with the Cincinnati Reds to become the team’s official sports betting partner and hopes to launch its sports betting product in the state on January 1st, 2023.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.