Underdog climbs to top 3 in LinkedIn's startup rankings
Sports betting operator Underdog has risen from fifteenth to third place in LinkedIn’s annual list of the best US startups. The company, which started out offering fantasy sports betting (DFS), recently achieved unicorn status with a valuation of $1.3 billion.
This list of LinkedIn startups is often an indicator of future success. In its early stages, it included companies such as Uber, Airbnb, and DoorDash. This year, Underdog is the only representative of the iGaming sector in the ranking. The operator’s competitors include products from the health, AI, finance, and programming sectors.
A year of rapid growth
Underdog’s fifth year in the US iGaming market has been marked by rapid expansion. In 2025, the company’s market valuation reached $1.3 billion, securing its status as a ‘unicorn’. The startup has also entered into strategic partnerships with professional sports clubs, including the Missouri-based NHL hockey team St. Louis Blues.
According to co-founder Josh Levine, despite instability in the industry, the company continues to demonstrate resilience and the ability to scale innovative solutions. In its fifth full year of operation, expected revenue is approximately $500 million.
Underdog became the first sports betting operator in the United States to offer prediction markets on 2 September 2025. The company launched a joint initiative with Crypto.com Derivatives North America (CDNA) to make predictions on sporting events through the Underdog app. The app ranked first in the free sports apps category in the App Store, beating competitors such as FanDuel and DraftKings.
The Brooklyn, New York-based company operates in 40 US states, the District of Columbia, and most regions of Canada. Its partners include well-known athletes such as Gilbert Arenas and Bryson DeChambeau. Underdog is now looking to strengthen its position not only in online betting, but also in the broader sports ecosystem.
$17.5 million fine from New York State
Fantasy sports operators face many regulatory restrictions in the US. In March of this year, Underdog became the latest company to face severe regulatory sanctions in New York. As part of an agreement with the New York State Gaming Commission, the company agreed to pay a $17.5 million fine and temporarily suspend operations in the state.
Underdog began offering fantasy contests in New York in July 2020 without obtaining a licence for interactive fantasy sports games. In December 2022, the company acquired Synkt Games, which had a temporary permit to operate in the state. However, even after that, not all of Underdog’s offerings complied with the terms of the temporary licence.
Under the terms of the settlement, some of the company’s contests complied with the licence requirements, while others did not. This non-compliance resulted in a significant fine and the company’s temporary exit from the New York market. However, it regained its position a few months later.
As for other states, Underdog applied for a sports betting licence in Missouri in October. The operator currently offers licensed sports betting in North Carolina and holds fantasy sports licences in various states across the country.
Partnership with Sportradar for responsible gaming
On 24 September 2025, Underdog announced a partnership with Sportradar, a leading provider of B2B solutions for operators. The platform integrates the Bettor Sense AI solution to identify players at high risk of addiction.
Underdog became the first American operator to use Bettor Sense. This player protection programme combines AI technology to identify signs of problematic behaviour with access to the services of the national Birches Health centre, which specialises in evidence-based gambling addiction therapy. This approach allows the company to meet the growing regulatory requirements for user protection.
This article was first published in Russian on 16 October 2025.
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