Underdog Fantasy is a fast-growing sports gaming company that has developed innovative fantasy sports contests and is now expanding into the sports betting market. Founded by serial entrepreneur Jeremy Levine, Underdog has quickly become a major player, attracting investment from top-tier backers like BlackRock, Mark Cuban, Kevin Durant, and other prominent investors. In July 2022, Underdog raised a $35M Series B at a $485M valuation, using the funding to expand into licensed sports betting.

Underdog's flagship product is a user-friendly fantasy sports app that enables players to compete in unique formats like best ball contests, where users draft a team for the season without managing weekly lineups. Underdog has surpassed FanDuel and DraftKings in fantasy sports, with more active customers and revenue. The company is now launching its own sportsbook, starting in North Carolina in March 2024, with plans to reshape the sports betting industry through a focus on product quality, gamification, and social features to engage casual fans.

With nearly 200 employees and plans to hire 100 more, Underdog is poised for continued growth as it innovates in both fantasy sports and sports betting. However, there are potential risks to consider. Underdog's "scorcher" bets on player props often have lower payouts than traditional sportsbooks. The company's terms of use allow it to withhold or revoke winnings and terminate contests at its sole discretion. As Underdog expands into new states and products, regulatory challenges or delays could impact growth plans.