Underdog Fantasy

What Underdog Fantasy does

Underdog Fantasy (legal entity Underdog Sports, LLC, parent Underdog Sports Holdings, Inc.) is a Brooklyn-based direct-to-consumer sports gaming platform founded in 2020 by Jeremy Levine. The company operates a mobile-first product portfolio across approximately 49 US states, Washington DC, and all Canadian provinces except Ontario. Its core products include Classic Pick'em (player and team prop predictions with payouts up to 5000x), Best Ball season-long fantasy drafts, Streaks (11-pick challenge), Team Picks, Ladders, and Pick'em Champions — spanning NFL, NBA, MLB, NHL, UFC, and PGA.

The platform's distinguishing technology is Underdog Predict, a CFTC-registered Futures Commission Merchant (FCM) offering sports event contracts through a federally-regulated exchange. Following the March 2026 acquisition of Aristotle Exchange DCM, Inc. and Aristotle Exchange DCO, Inc. — CFTC-registered Designated Contract Market and Derivatives Clearing Organization entities — Underdog now operates its own federally-compliant prediction market exchange via its subsidiary UDM Services, LLC, transitioning from its earlier intermediary model with Crypto.com Derivatives North America (CDNA).

The business model is transaction-fee based: Underdog earns entry fees on fantasy contests and a house edge on Pick'em wagers, with no disclosed subscription tier. Customer acquisition is product-led and event-driven, combining a Play $5 Get $50 bonus promo distributed via affiliate and media partnerships (NY Post, Newsweek, podcast sponsorships) with sports team marketing deals (St. Louis Blues, Kansas City Royals, UFL). The company has raised approximately $140M in venture funding across a Series B led by BlackRock and Acies Investment (2022) and a Series C led by Spark Capital (2025), reached a $1.225B pre-money valuation, and reported being on track for nearly $500M in revenue in its fifth year with approximately 4 million cumulative customers. The company is undergoing a strategic pivot from state-regulated sportsbook operations to a federally-regulated prediction markets platform, marked by 20%+ workforce reduction in February 2026 and exits from Missouri and North Carolina sports betting markets.

Name

Underdog Fantasy

Legal name

Underdog Sports, LLC

Website

https://underdogfantasy.com

Company type

Private

Founded year

2020

Operating status

Operating

Headcount range

251–500 employees

Short description

Underdog Fantasy is a Brooklyn-based mobile sports gaming platform offering Pick'em contests, Best Ball fantasy drafts, and CFTC-regulated prediction markets to nearly 4 million customers across 49 US states, Washington DC, and Canada, monetizing via entry fees and house edge on wagers.

Ownership category

akta.pro rank

Product category

Daily Fantasy Sports & Prediction Markets

NAICS

Gambling Industries (7132)

SIC

Services-Membership Sports & Recreation Clubs (7997)

akta.pro primary industry

Fantasy Player Props & Pick’em (Skill-Based Fantasy) (MPAEAHAG)

akta.pro secondary industries

Season-Long Fantasy Platforms & Commissioners (MPAEAHAB), Player Wallets, Escrow & Custodial Account Services (MPAEALAK), Tipsters, Picks & Betting Advice Lead Gen (MPAEAMAE)

Keywords

• Daily fantasy sports
• Sports prediction markets
• Best ball drafts
• Pick'em contests
• Fantasy sports betting

Headquarters

HQ city

Brooklyn

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Software

Cost components

Technology or R&D, Marketing or Sales, Personnel, Operations, Others

Revenue model

1. Fantasy Contest Entry Fees: Users pay entry fees to participate in daily fantasy sports contests and best ball draft games across NFL, NBA, MLB, NHL, UFC, and PGA. Prize pools distributed to top performers.
2. Pick'em Game Wagers: Users make picks on player and team outcomes with potential payouts up to 5000x. Company retains house edge on losing entries.
3. Prediction Market Trading: Event contract trading through Underdog Predict platform with CFTC-registered infrastructure. Generates fees from trading activity on sports and cultural event contracts.

Pricing tiers

Go-to-market motion3 records

Distribution channels2 records

Marketing channels6 records

Core offering

Underdog Fantasy operates a mobile-first sports gaming platform offering daily fantasy sports contests, Pick'em games, Best Ball season-long drafts, and CFTC-regulated sports prediction markets (Underdog Predict). Users pay entry fees to make player/team picks with potential payouts up to 5000x, compete in season-long fantasy drafts, and trade sports event contracts via a federally-registered exchange. The platform is available across 49 US states, Washington DC, and Canada (excluding Ontario).

Product overview

Underdog Fantasy operates as a multi-product sports gaming platform offering Pick'em games, Best Ball fantasy drafts, prediction markets (Underdog Predict), and various contest formats across NFL, NBA, MLB, NHL, UFC, and PGA. The platform features products including Classic Pick'em, Best Ball & Drafts, Streaks, Team Picks, Pick'em Champions, and Ladders. Through its acquisition of Aristotle Exchange DCM and DCO, Underdog now operates its own CFTC-regulated prediction market exchange. The company also maintains a responsible gaming initiative through its GuardDog Fund. Products are available via iOS and Android mobile apps and web platform, operating in approximately 49 U.S. states, Washington DC, and Canada (excluding Ontario).

Differentiator

Problem solved

Functional benefit

Brands

• Underdog Predict: Prediction market platform offering sports event contracts, powered by CDNA a registered DCM. A registered FCM (Futures Commission Merchant) offering event contracts.
• GuardDog
• Pick'em Champions
• Streaks

Products and services

• Underdog Predict A CFTC-registered Futures Commission Merchant (FCM) offering event contracts for sports prediction markets, powered by CDNA (a registered DCM). Enables users to trade on sports outcomes with spreads, totals, moneylines, and parlays. Trades are placed on CDNA, a registered DCM, powered by UDM Services, LLC.
• Classic Pick'em Pick'em games where users select players or teams to win up to 5,000x their entry, with options for player picks, team picks, or combined entries. Includes spreads, totals, moneylines and parlays.
• Best Ball & Drafts Season-long fantasy football and other sports draft contests where users draft teams and automatic roster management maximizes points each week, competing for prize pools. Features 18-round drafts with 0.5 PPR scoring.
• Streaks Streak-building games where users pick 11 consecutive outcomes to win up to 5,000x multiplier on their entry, with larger nights offering bigger potential winnings.
• Team Picks Team-based selection games allowing users to pick teams, players, or combine them in the same entry, with features like Vulture Protection and Pick'em Rescues.
• Pick'em Champions Championship-style Pick'em contests available in select states (Alabama, Alaska, Arizona, Colorado, Florida, Massachusetts, Missouri, New Hampshire, North Carolina, Tennessee, Virginia, Wyoming).
• Ladders Higher-stakes Pick'em games offering bigger nights with larger potential winnings for users seeking higher-risk, higher-reward gameplay.

Quantifiable outcome

• $2 billion+ won by users on Underdog
• +2 more outcomes

Named customers5 records

Segments2 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature5 records

Partnerships

Eight partnerships are on record, tiered core, minor and flagship.

• Lundgren (Former Crypto.com Executive)coreTechnology or Integration · 6 May 2026Hired former head of Crypto.com prediction exchange and chief legal officer to lead Underdog's prediction market operations following acquisition of regulatory infrastructure.
• Aristotle Inc. / Aristotle ExchangecoreStrategic or Co-development Partner · 9 March 2026Acquired Aristotle Exchange DCM, Inc. and Aristotle Exchange DCO, Inc., CFTC-registered entities, enabling Underdog to operate its own federally-compliant prediction market exchange. Aristotle retains control of its PredictIt exchange.
• United Football LeagueminorGTM or Marketing Partner · 5 January 2026Partnership formed to enhance fan engagement through the UFL's sports platform.
• RegenminorStrategic or Co-development Partner · 1 January 2026GuardDog (Underdog's responsible gaming innovation fund) invested in Regen to integrate auto-savings feature into Underdog platform, allowing players to convert wager portions into FDIC-insured savings.
• St. Louis BluesflagshipGTM or Marketing Partner · 14 October 2025Multiyear marketing partnership including in-arena activations at Enterprise Center, broadcast visible assets, and utilization of Blues intellectual property in Underdog marketing materials. Positioned ahead of Missouri sports betting launch.
• Crypto.com (CDNA)coreTechnology or Integration · 1 September 2025Initial prediction market partnership where Crypto.com provided CFTC-regulated exchange infrastructure. Underdog was first sports gaming operator to offer prediction markets access through this partnership.
• Kansas City RoyalsflagshipGTM or Marketing Partner · 1 September 2025Multi-year partnership announced for market access to Missouri sports betting market. Underdog withdrew application before Missouri launch, with Royals seeking replacement partner.
• Gilbert Arenas / Gil's ArenaflagshipGTM or Marketing PartnerFormer NBA All-Star sold 50% stake in his 'Gil's Arena' podcast to Underdog in October 2025. Arenas announced partnership split in June 2026, taking full ownership of the podcast.

Scale indicators7 records

Recent moves8 records

Expansion highlights6 records

Broad incumbents

• DraftKings: Large incumbent offering both daily fantasy sports and state-licensed sports betting across the US. DraftKings competes with Underdog in season-long and DFS formats and represents the largest scaled operator in sports gaming, though focused on traditional state-licensed sportsbooks rather than CFTC-regulated prediction markets.
• FanDuel: Major incumbent operator in DFS and sports betting, owned by Flutter Entertainment. Competes with Underdog in season-long fantasy contests (FanDuel Fantasy) and represents the closest large-scale competitor in the US fantasy sports market.
• Yahoo Fantasy: Established season-long fantasy sports platform with massive user base. Yahoo Fantasy competes with Underdog's Best Ball draft product, though it is free-to-play and does not offer real-money contests at the same scale.

Direct peers

• Betr: Direct competitor in pick'em-style fantasy sports and micro-betting markets. Founded by Jake Paul, Betr offers similar player prop pick'em contests and was named alongside Underdog in Florida cease-and-desist enforcement actions.
• Sleeper: Mobile-first fantasy sports platform offering season-long and pick'em fantasy contests. Sleeper targets the same mobile-native sports fan demographic and competes with Underdog in best ball and pick'em formats.
• Fliff: Social sportsbook offering free-to-play and pick'em style contests targeting a similar casual sports-fan demographic. Fliff competes in the same entry-level sports engagement market as Underdog's Pick'em products.
• Kalshi: CFTC-regulated prediction market exchange and direct competitor to Underdog Predict. Kalshi offers event contracts on sports, politics, and economics, and is the primary federal-regulated exchange competing for the same sports prediction market users.
• PrizePicks: Direct competitor in daily fantasy sports Pick'em market. PrizePicks offers the same player prop and stat-based pick'em contests that constitute Underdog's core product, serving the same sports-fan customer base. Both have faced similar state regulatory scrutiny, with Florida cease-and-desist letters targeting both companies.

Emerging players

• Polymarket: Cryptocurrency-based prediction market platform offering event contracts. While focused primarily on political and economic events, Polymarket represents an emerging competitor in the broader prediction market space that Underdog is entering.
• Novig: Commission-free sports prediction market and exchange competing in the same CFTC-regulated prediction market category as Underdog Predict. Novig targets similar sports prediction use cases with a peer-to-peer exchange model.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• Instagraminstagram.com/underdogfantasy
• Facebookfacebook.com/UnderdogFantasy
• YouTubeyoutube.com/@UnderdogFantasy

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Subsidiaries1 record

Funding overview

Funding rounds4 records

Investors18 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Underdog Fantasy