Underdog Pivots to Peer-to-Peer Format in California
Underdog Fantasy has revamped its daily fantasy sports (DFS) offerings in California, dropping its house-banked “pick’em” games for a peer-to-peer (P2P) model called “Champions.
Dodging Legal Heat
Following California Attorney General Rob Bonta’s July 3 opinion declaring all paid DFS games illegal sports betting, Underdog replaced its “pick’em” format, where players competed against the house, with “Champions.”
In this P2P setup, players pay an entry fee to face off against each other, picking 2-8 athletes and predicting if they’ll beat or fall short of set stats to earn points. The top scorer wins the prize pool.
A company spokesperson said, “We expect fans in California will love ‘Champions,’ just as they have in other states.” Underdog already runs P2P games in 20 states, including Virginia and Arizona, where similar rules pushed operators to adapt.
Industry Moves and Tribal Pushback
Bonta’s 33-page ruling labeled DFS, including P2P and draft-style games, as violations of California’s betting laws, calling “pick’em” games akin to prop bets.
PrizePicks made a similar pivot to its “Arena” P2P format on July 2, while Underdog, DraftKings, and FanDuel keep operating in California, banking on the opinion’s advisory nature, which carries no legal weight.
California’s tribal groups, like the California Nations Indian Gaming Association, support Bonta, claiming DFS threatens their $8 billion casino market. Governor Gavin Newsom, however, pushed back, stating, “AG Bonta got it wrong,” and advocating for a DFS-friendly fix.
Recommended