Underdog Fantasy Relaunches Draft-Style DFS in New York

A Swift Comeback

Underdog Fantasy made a return to New York’s daily fantasy sports (DFS) market on May 16, at 7 p.m., flipping the switch on its draft-style contests after a two-month hiatus.

The relaunch, greenlit by a temporary license from the New York State Gaming Commission (NYSGC), follows a $17.5 million settlement in March 2025 that saw Underdog exit the state over regulatory disputes.

Underdog’s March 2025 exit stemmed from a clash with the NYSGC. The operator had been running DFS contests in New York since July 2020, initially without a license, before acquiring Synkt Games in December 2022.

That deal handed Underdog Synkt’s temporary interactive fantasy sports (IFS) license, issued in 2016. New York’s 2016 DFS law allowed operators active before November 10, 2015, to operate under temporary permits pending permanent registration.

However, the NYSGC ruled that temporary license holders couldn’t tweak their game offerings from the time of issuance. The commission flagged Underdog’s “Pick’em” and “Draft” contests, introduced post-2015, as violations of Synkt’s original license terms.

The Settlement Deal

Rather than slug it out in court, Underdog opted for a settlement. The agreement, finalized March 14, 2025, required Underdog to pay $17.5 million in 12 installments from April 1, 2025, to January 1, 2028, and pull all contests (draft and pick’em) from New York.

Nicholas Green, Underdog’s General Counsel, called the issue a “unique, temporary license issue specific only to New York,” not tied to game formats. “

Any fantasy game created after 2015, no matter the format, is not permitted under the commission’s interpretation,” Green said, noting the fine reflected Underdog’s strong New York fanbase.

The NYSGC acknowledged Underdog’s “good faith” cooperation, leaving the door open for a return. Underdog also agreed to remit back taxes owed by Synkt, with interest and penalties, within 90 days

Underdog’s May 16 relaunch, confirmed by a spokesperson to Saturday Down South, brings back draft-style DFS contests under the same temporary license, per web sources.

Unlike its full pre-March suite, the relaunch excludes pick’em games, both against-the-house and peer-to-peer versions, sticking strictly to draft formats to comply with NYSGC rules.

Green emphasized the company’s cooperation, saying, “We look forward to offering all of our contests again to New Yorkers, and we are working with the Commission to do so as soon as possible.”