Under a peer-to-peer business model, Underdog Fantasy is making its return to Kansas

In February, the Kansas Racing and Gaming Commission (KRGC) gave Underdog Fantasy a cease-and-desist order. After months of trying to find a way back into the market, Underdog Fantasy confirmed they are making a comeback. Underdog is a Daily Fantasy Sports (DFS) company that will now operate under a peer-to-peer business model in Kansas.

This helps Underdog Fantasy comply with the “the spirit of Kansas law.” Stacie Stern is the Senior VP of Government Affairs and Partnerships at Underdog. She noted that the company is working closely with the KRGC. They had a thorough review done and the Racing and Gaming Commission confirmed their peer-to-peer product could be offered in Kansas.

Additionally, Stacie Stern mentioned how Underdog adjusts their gaming formats to meet differing regulatory requirements. Per the Underdog Fantasy website, customers in Kansas will be able to participate in Pick ‘em and Draft contests.

Why was Underdog Fantasy deemed illegal in the first place?

This time last year, Gaming regulators in Kansas determined that Underdog Fantasy was “illegal operations.” They were accepting wagers but did not follow the licensing and taxation rules required for regulated sportsbooks. However, Underdog Fantasy claims the Champions product is considered peer-to-peer rather than player vs. operator. That makes Underdog different from traditional Kansas sportsbooks. These were all claims by Underdog in November 2023.

What is Champions in Underdog Fantasy?

Underdog’s Champions game is where users can create a roster of two to eight athletes. Then, customers can predict whether that player will go over or under a given total. Winning in Champions is based on how the athletes perform based on the participant’s projection. The more selection a player gets right, the more likely they are to win.

In 2020, Underdog Fantasy was created in Brooklyn, New York. They are a mobile DFS platform. Underdog is available in several U.S. states and Canadian provinces and territories except for Ontario. Earlier this year, Underdog relaunched in Florida under a similar peer-to-peer business model. In March, Underdog launched a retail sportsbook that is exclusively available in North Carolina.