Daily fantasy sports operator Underdog Fantasy has laid off at least 125 employees, which is more than 20% of its workforce, as it shifts its business strategy toward prediction markets and AI.
The layoffs, which happened on February 27, mark one of the company’s most significant restructurings since its rapid expansion in the US fantasy sports and betting industry.
Since its launch in 2020, Underdog has expanded into offering fantasy games in 40 states and a sportsbook in North Carolina.
The company will now shift toward prediction market platforms, which have been growing in popularity nationwide. In September, Underdog partnered with derivatives exchange Crypto.com to launch sports event contracts in 16 states.
