Underdog Fantasy switches to peer-to-peer games ahead of California law change

Underdog Fantasy is changing its most popular daily fantasy sports game in California ahead of legal uncertainty.

Two weeks on from California Attorney General Rob Bonta’s damning response to the legality of fantasy sports games, Underdog Fantasy appears to be getting ahead of any anticipated law changes. Increasing legal uncertainty is putting pressure on gaming providers, with Bonta asserting that such games involve betting on sporting events.

While fantasy operators argue that their contests are a matter of skill and should not be considered as gambling, the backing of the Attorney General is making it increasingly likely that legal changes could be on the way soon – although it’s worth noting that his decision alone is not enacting any legal actions.

That’s having knock-on effects in the sector, with Underdog’s main competitor PrizePicks already shifting to a peer-to-peer model earlier this month.

Now, Underdog has itself also changed its California DFS pick’em games to a peer-to-peer format. With this ‘Champions’ format, users pay an entry fee to compete against each other in hopes of winning a cash pool. Previously, the pick’em format saw users select players and bet against Underdog in exchange for a fixed payout.

“We brought the peer to peer Pick’em game type to the industry, and have now launched our Champions game in 20 states,” an Underdog spokesperson said in a statement, cited by Legal Sports Report. “We expect California fans will love playing, which is what we have seen in every other state.”

It could be that switching up the format of the games, with major operators like Underdog and PrizePicks taking preventative action, will be enough to satisfy lawmakers, without need for specific legislation.

However, that remains to be seen in the coming weeks or months. As its stands, the state has not issued any cease-and-desist orders or singled out companies for any warnings.

ReadWrite has reached out to Underdog Fantasy for comment.

Featured image: Underdog LLC

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