Underdog job cuts and regulatory challenges mount nationwide

"At least 125 employees, which is more than 20% of the company's workforce, were let go as Underdog shifts away from some of its traditional offerings and leans more heavily into prediction markets. Teams in fraud operations, marketing, customer support, and product were among those affected."

"In California, uncertainty has hung over daily fantasy sports operators after the state's Attorney General issued an opinion asserting that many fantasy formats, including pick 'em and drafts, amount to illegal gambling under state law."

"Current and former staffers have turned to LinkedIn to share that they were swept up in the layoffs. One member of the creative team said Underdog 'made the decision to eliminate my role in a recent round of layoffs' after four years spent building systems and leading teams."

Underdog, a fantasy sports betting company previously valued as a unicorn with hundreds of millions in venture backing, is experiencing significant challenges. The company conducted substantial workforce reductions, eliminating over 125 employees representing more than 20% of its staff. Affected departments include fraud operations, marketing, customer support, and product teams. Simultaneously, Underdog is restructuring its product strategy, moving away from traditional offerings toward prediction markets. These internal changes occur as the company faces intensifying regulatory pressure and legal challenges across multiple states, particularly in California where the Attorney General has issued opinions asserting that certain fantasy sports formats constitute illegal gambling.

Read at ReadWrite