Underdog Fantasy Returns to New York With Draft DFS Games

daily fantasy sports (DFS) games after stepping away for two months. On May 15, the company announced that draft contests were once again available in the Empire State, operating under the conditions of its temporary DFS license issued by the New York State Gaming Commission (NYSGC). Despite this relaunch, other popular products such as the against-the-house and peer-to-peer (P2P) pick’em formats have not yet resumed in New York.

This return signals Underdog’s commitment to maintaining a presence in one of the largest DFS markets in the U.S., even as regulatory challenges persist. The draft-style games have been popular for offering s a more strategic and immersive fantasy sports experience compared to traditional contests.

Regulatory Challenges Led to Temporary Exit

Underdog’s exit from the New York market in mid-March came after the NYSGC ruled that the games the company was offering were not fully covered by the temporary license it had inherited from Synkt Games. Synkt’s license, dating back to 2016, was limited in scope, and regulators felt that Underdog’s product offerings varied too greatly from those originally approved.

As a result, Underdog agreed to a settlement that included an $18 million payment and a withdrawal from New York’s DFS market. This settlement highlighted the complexities and regulatory hurdles in a market that had only offered temporary licensing for fantasy sports providers for several years.

Currently, New York is working toward establishing a permanent DFS licensing system, aimed at providing clearer regulatory guidelines and greater stability for operators. Underdog has already applied for a permanent license, signaling its intent to continue serving New York players long-term. The company and regulators have not publicly commented further on the situation, and attempts to obtain statements from the NYSGC regarding Underdog’s recent market re-entry were unsuccessful at the time of reporting.

Funding Round Boosts Company Growth

Underdog’s return to New York comes at a pivotal moment, as the company recently secured a significant capital infusion through a Series C funding round. Led by Spark Capital, this round raised more than $100 million, with an initial closing of $70 million. The fresh capital has propelled Underdog’s valuation to over $1.2 billion, representing a substantial increase from its $485 million valuation during the Series B round in 2022.

CEO and Founder Jeremy Levine described the funding as “a real accelerator” that will help Underdog invest in product innovation and attract high-caliber talent to strengthen its position in the competitive sports gaming landscape.

Since its founding in 2020, Underdog Fantasy has experienced rapid growth. It now serves nearly four million customers across the U.S. and ranks as the fourth most ed sports gaming app nationally, thanks to its unique blend of fantasy sports and sports betting offerings.

Expansion Plans Beyond New York

At the time of its March exit from New York, Underdog also announced plans to launch its peer-to-peer Champions Pick’em game in neighboring states such as Delaware. These markets have established regulated DFS frameworks, providing a smoother path for product rollouts.

In addition to fantasy sports, Underdog currently offers sports betting in select states and has made clear its intention to enter Missouri’s regulated sports betting market, expected to launch on December 1, 2025. This continued expansion reflects Underdog’s broader strategy to grow its footprint across the U.S. sports gaming industry.

Underdog’s recent announcement via X on May 16 celebrated the return of draft games in New York, marking a significant step forward as the company navigates evolving regulatory landscapes and pursues long-term growth.

Source:

Underdog Fantasy relaunches draft games in New York, sbcamericas.com, May 19, 2025.