Underdog Cuts Jobs as It Pivots to Prediction Markets

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Underdog, a sports betting and fantasy sports company, has undergone a significant round of layoffs, including cutting two-thirds of its fraud operations team. The layoffs, which affected at least 15 employees, come as the company shifts its focus from traditional sports betting and paid fantasy draft contests to prediction markets.

Why it matters

Underdog's pivot to prediction markets reflects the growing popularity and regulatory environment around this emerging industry. While traditional sports betting is regulated on a state-by-state basis, prediction markets face less burdensome regulations, making them an attractive alternative for companies like Underdog. However, the layoffs highlight the challenges of navigating this strategic shift and the impact on employees.

The details

According to posts from former employees, Underdog laid off at least 15 people, including substantial cuts to the fraud operations department as well as jobs in customer support, graphics, and 'drafts,' a product offering daily and season-long draft-based games. The layoffs were announced abruptly, with affected employees informed during the workday on Friday, February 27th that their jobs had been cut. Access to company property, including email and Slack, was immediately revoked.

• On February 27, 2026, Underdog laid off at least 15 employees, including two-thirds of its fraud operations team.

What they’re saying

What’s next

Underdog will continue to focus on its prediction markets business, which it sees as less regulated than traditional sports betting. The company will also need to navigate the fallout from the layoffs and potential legal challenges facing the prediction markets industry.