Underdog rolls out peer-to-peer pick’em game amid ongoing regulator scrutiny
DFS operator launches new format as alternative to popular and increasingly controversial against-the-house contests
Underdog Fantasy has announced the rollout of a peer-to-peer pick’em game amid mounting scrutiny from state regulators relating to its traditional against-the-house daily fantasy sports (DFS) contests.
Styled as ‘Pick’em Champions,’ the contests feature a similar mechanic to Underdog’s popular against-the-house counterparts in that they are centered around users building teams of players and predicting whether those players will perform ‘over’ or ‘under’ certain statistical benchmarks such as receiving yards or three-pointers made.
However, in contrast to the standard pick’em format whereby users are rewarded with preset payouts that escalate based on the number of picks in an entry, Champions contests take the form of a pooled tournament, with winners sharing in a prize pool depending on the number of participants.
“We’ve built Underdog to innovate and help sports fans increase their enjoyment with sports and that is exactly what we are doing with Pick‘em Champions,” said Underdog founder and co-CEO Jeremy Levine. “I’m very excited for what comes next. As we continue to evolve Champions, I think it very well could become the best game we offer.”
Underdog is initially rolling out the Champions product in Alabama, Mississippi, Tennessee, and Wyoming.
The launch in those states is likely strategic. The Wyoming Gaming Commission – determining any against-the-house contests qualify as sports betting – notably sent cease-and-desist letters to Underdog and its primary rival PrizePicks in July, while the Mississippi Gaming Commission recently issued letters to all DFS companies emphasizing Mississippi state law does not allow for such contests.
Bigger gaming states have taken similar positions, with New York, Michigan, Colorado, and Arizona all moving to restrict or ban against-the-house pick’em formats.