Underdog Fantasy has relaunched its draft games in New York after a two-month enforced absence. At the moment, not all daily fantasy sports (DFS) products are available, for example, against-the-house or the P2P version of the Underdog pick’em product.
The DFS operator exited New York in March this year and paid an $18 million fine for offering games that the New York State Gaming Commission (NYSGC) claimed some of the games were effectively forms of sports betting without a valid license.
Fantasy sports or sports betting?
Underdog had obtained a temporary DFS license after acquiring Synkt Games in 2022, but some of its games, such as the pick’em product, toe the line between fantasy sports and betting. In New Jersey and Delaware, the company launched a new version, Champions pick’em, that avoids the “against-the-house” format and fits within tighter regulatory DFS definitions.
New York has now started the process to move from temporary to permanent licenses for DFS, and Underdog has applied for one. No official announcement has been made by the NYSGC about whether they have granted the license as yet.
The company has stated its intention to expand into sports betting. CEO Jeremy Levine commented, “We want to be in sports betting—but we’re doing it the right way. If regulators see our pick’em product as betting, then we’ll bring our betting platform to those states.”
In Colorado and Ohio, the company has filed for a gambling license and also plans to apply for a Missouri sports betting license when the state launches legal sportsbooks later this year.
Underdog valued at over $1 billion
In March this year, Underdog Fantasy announced a $100 million Series C funding round led by Spark Capital, raising the company’s valuation to $1.2 billion. On the funding, Levine stated, “This funding is a real accelerator for our plans. We’re committed to creating the best products for sports fans and bringing top-tier talent into the company.”
The company has grown since its founding in 2020 and boasts 4 million players across the US. It currently prides itself on being the fourth most downloaded mobile sports betting or gaming app in the country.
The fantasy sports market is valued at around $13 billion and is expected to grow to just under $15 billion by next year. New York is a valuable market considering it reported a record betting handle of over $2 billion in April, the most of any US state in history.
Many users reacted positively to a post on X from Underdog that announced its return, just in time for the Knicks taking to the court for the Eastern Conference Finals.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling.
