As the U.S. sports betting industry approaches 2025 for the next phase in the business cycle, traditional sportsbooks remain continually challenged by the prospect of retaining legacy customers.
Six years after the historic PASPA decision, there is headroom left in existing markets, but achieving high growth rates in those states may be difficult to attain, Eilers & Krejcik analysts noted this month at the Global Gaming Expo (G2E) in Las Vegas. Consequently, product innovation will become increasingly more important in retaining customers, Underdog Fantasy CEO Jeremy Levine told Action Network at the conference.
During a noisy Monday Night Football event at Circa Sportsbook, Levine described some of the market forces dictating product development in a brief interview with Action Network. In the rush to set up shop in the U.S, numerous legacy sportsbooks imported a traditional model that has been prevalent overseas for decades. In some respects, the outdated product has opened up gaps for newcomers to introduce more customer-friendly offerings, he indicated.
“The same product that was over in the U.K. and Europe is now being retrofit for the American consumer,” he emphasized. “They haven’t built a product to engage fans. That’s what we focus on, building those products.”
Recognition From Goldman Sachs
Over the first half of the football season, Levine has been pleased with download volumes, along with the average time a user has spent on the app.
According to product testing from Betting Hero, Underdog received high marks for a "modern, user-friendly design" that makes placing bets a simple proposition. Based on internal metrics, Underdog ranks fourth in gaming downloads during the NFL season.
Levine believes Underdog maintains a strategic advantage by operating its own technology platform.
"We talk about product velocity all the time," Levine told Action Network. "By building our own technology, we get to build a product that our customers want and we get to build it faster."
A product of the relentless work of all the amazing people I get to build with. I’m just the one that gets to accept the award.https://t.co/fiDobtEErU#GSInnovatorspic.twitter.com/Ca1keIztFT
— Jeremy Levine (@JerLevine) October 16, 2024
Last week, Goldman Sachs recognized Levine as one of its most exceptional entrepreneurs of 2024. It marked the second consecutive year that Levine received inclusion on the prestigious list.
“This is a testament to the relentless work of the talented team we’ve built, and their endless ability to create new games for sports fans that aren’t just repackaged from the old gaming playbook,” Levine said in a statement. “We have an incredible opportunity in front of us, as our industry does so much well, but it's ripe for more and more innovation – and we plan to take advantage.”
'A press release searching for a legal theory'
Last week, a Massachusetts individual filed a lawsuit against Underdog and two other companies, Yahoo Fantasy Sports and PrizePicks. Filed in Massachusetts Superior Court by Joseph Curran, the lawsuit asserts that the companies were licensed in the state to operate fantasy sports platforms, not gambling ones.
An Underdog spokesperson criticized the lawsuit, telling SBC Americas that it is a “press release searching for a legal theory.”
In March, Underdog unveiled a sportsbook product in North Carolina, marking the launch of its first real-money sports betting app in a U.S. state. On the fantasy sports side, Underdog offers its Pick ‘Em Champions contest in 14 states, including Florida, Tennessee and Colorado.
