Underdog has laid off at least 125 employees, including two-thirds of its fraud operations team, as the company shifts from traditional sports betting and fantasy contests to national prediction markets.
The cuts are seemingly far larger than initially reported. Earlier Monday, Front Office Sports noted that 15 employees had been let go based on social media posts. However, additional sources told the outlet that the total exceeds 125 employees, representing just over 20% of Underdog’s workforce. LinkedIn lists the company’s total staff at more than 600.
In a statement to FOS, Underdog CEO and founder Jeremy Levine cited the company’s strategic shift as the primary reason for the reductions. He said that this year, the business transitioned from a state-by-state framework to a national prediction markets platform with seamless offerings across the country.
“It’s simply a different operation, and the changes we made are a part of that transition,” Levine said. “ We take pride in hiring people who are passionate, good human beings, and who really care about their work, so if you’re hiring and come across an ex-Underdog person, you’d be lucky to have them and call me for a reference.”
Employees were notified of the layoffs on Friday, Feb. 27. Beyond fraud operations, jobs were cut in customer support, graphics, marketing, and Underdog’s “drafts” product, which offers daily and season-long draft-based games. Several affected employees described the process as abrupt.
Underdog’s layoffs reflect its move into prediction markets, following a September deal with Crypto.com. The partnership allows users in 16 states to trade event contracts across the NFL, NBA, MLB, college football, and more.
Previously, Underdog appeared poised to expand its traditional sports betting business, but the company recently closed its North Carolina sports betting operation and abandoned plans for a Missouri license.
The prediction market sector has attracted growing interest from investors and public figures, including Donald Trump Jr., who is involved with Polymarket and Kalshi. Trump’s platform, Truth Social, also plans to launch a prediction-market product with Crypto.com.
Regulatory oversight appears lighter than for state-by-state sports betting, and Commodity Futures Trading Commission chairman Mike Selig has pledged strong support for the industry. “To those who seek to challenge our authority in this space, let me be clear: we will see you in court,” he said.
Original article: https://www.yogonet.com/international/news/2026/03/03/117869-underdog-lays-off-125-employees-amid-shift-to-prediction-markets
