Underdog Fantasy Settles in NY Amid Expansion Challenges

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00:00All right, let's close it out with another one of the fantasy PICM companies leaving another state,

00:05Underdog, extremely popular company as you know. Sam, not allowed to operate in New York anymore,

00:11but I did see that there was a settlement involved here, so you'll have to get us caught up with this.

00:17Yeah, this is a unique case, different from the wave of states sending cease and desist letters

00:23to Underdog and other fantasy PICM operator companies, which a lot of states have basically

00:28said what you're offering is just player props and you need to do something to fix that. Underdog

00:33and PrizeFix came out and essentially launched a peer-to-peer version where it wasn't player versus

00:38house. That satisfied things a lot of states, but in New York this past week they determined that

00:43what they were offering is essentially not allowed. Now Underdog had been operating under a

00:47temporary license, so they were there legally, but what the state said is these games were not

00:53authorized under the temporary license. So they settled with the state, agreed to pay 17 and a

00:57half million dollars, which is based on the revenue they made in the state. It was a good

01:02faith agreement. Underdog wants to come back to New York. We'll see how they do that. It seems

01:07like their peer-to-peer version will not be allowed, so we'll see if they get creative there.

01:12But I think it's a sign that it was really popular in a state like New York, which is the biggest

01:16sports betting state and also has legal sports betting options versus these other states that

01:21these companies are in, like California and Texas, where they're really the only game in town until

01:25someone kicks them out. So Underdog vowing to return and has also launched in New Jersey

01:31and Delaware at the same time with a peer-to-peer version. So hoping to expand, hoping to return,

01:36but out in New York for the meantime. We'll see when they come back. We'll keep an eye on that.