Just weeks after abruptly withdrawing from New York, Underdog Fantasy has announced the return of its signature draft-style daily fantasy sports (DFS) contests in the state. This development marks a substantial strategic success for the company and a rare second chance in one of the USA’s strictest regulatory markets. The triumphant return will allow Underdor to tap into a highly profitable market, bolstering its position.
The Company Took Its Time to Ensure Compliance
Underdog’s New York relaunch happened on May 16 at about 7 p.m., meaning Empire State residents can again participate in Underdog’s distinctive, draft-based contests. This sudden return was only possible thanks to a temporary license from the New York State Gaming Commission (NYSGC), allowing the DFS company to resume operations despite the lingering regulatory uncertainty.
Underdog exited the state in March amid rising pressure from the NYSGC, which accused the operator of using its subsidiary, Synkt, to run contests allegedly violating state law. Although Underdog publicly opposed these accusations, the company opted to pay a substantial fine and voluntarily close operations rather than engage in a protracted legal battle.
Many viewed Underdog’s departure as a sign of increased enforcement by New York regulators, particularly following the $15 million penalty imposed on rival DFS operator PrizePicks in February. Industry heavyweights like DraftKings and FanDuel have traditionally dominated the New York DFS market, using their early market entry and substantial resources to maintain their leadership position.
A Victory in New York Bodes Well for Underdog
Underdog’s return under temporary licensure underlines the company’s ability to adapt to shifting regulatory circumstances. It also showcases the state’s growing willingness to reassess how modern DFS games fit within current legal frameworks. Nicholas Green, Underdog’s general counsel, previously noted that the company’s primary disputes with the regulator revolved around licensing rather than specific game offerings.
Underdog’s solution to navigating the complex patchwork of US gambling regulations lies within its state-by-state approach. The company’s “Champions” brand has helped it thrive in stricter and more challenging markets, offering games structured to comply with the narrower definitions of legal DFS. While such products generate less revenue, they remain vital in bolstering the company’s brand recognition across the USA.
With competition heating up and potential regulatory reform on the horizon, New York’s DFS market could be up for a significant shakeup with Underdog at the forefront. The operator already offers its services in over 30 states and remains steadfast in its calls for clear, technology-forward laws that recognize the evolving nature of fantasy sports.