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Underdog Fantasy Valued at $485 Million with Eye on Sports Betting

Underdog Fantasy Valued at $485 Million with Eye on Sports Betting article feature image
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Hannah Foslien/Getty Images. Pictured: Cincinnati Reds starting pitcher Tyler Mahle.

Underdog has reached a $485 million valuation, with plans to expand beyond a fantasy sports business, the company said Tuesday.

The company received $35 million its latest round of fundraising, which included backing from major multinational firms BlackRock and Acies Investments, according to a press release.

Their buy-in comes as Underdog looks to join the $4 billion U.S. sports betting industry.

Fantasy Players to Sports Bettors

Company Founder Jeremy Levine said the company plans to divert high customer acquisition costs by leverage its fantasy sports players into full-time bettors.

“The rest of the companies, they’re sportsbook companies, that’s how they view themselves,” Levine said. “We like to think of ourselves as a gaming studio in a licensed betting environment.”

Underdog Fantasy is available in every state except Connecticut, Hawaii, Idaho, Nevada, Louisiana, Montana, Washington, Delaware and Iowa. It’s also available in Canada.

The fantasy-first approach has worked so far FanDuel and DraftKings — which began as daily fantasy operators and now boast 60% of online sports betting market share in the United States.

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Ohio App on Track for January

Underdog is already on track to launch its first sports betting product by January. 

It’s partnered with the Cincinnati Reds to run an online sportsbook in Ohio, which legalized sports betting last year. Pending the Ohio Casino Control Commission’s approval, they’d be able to launch Jan. 1, 2023.

Acies Investments has stake in micro-betting and sports betting integrity technology, which should help Underdog get licensed faster in other states.

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