Underdog Fantasy is continuing to make improvements to its daily fantasy sports platform.
The New York-based company has agreed to a partnership with digital fraud protection company Sift to improve the efficiency of transactions and protect users from fraud.
Sift, which uses machine learning, will help Underdog identify stolen payment methods. As a result, Underdog will reduce fraudulent chargebacks that impact the platform’s legitimate users.
“Sift’s industry expertise and innovative use of machine learning allows us to instantly identify and block emerging fraud threats without creating hurdles for our players,” said Underdog COO and CFO Dustin Cooper. “This partnership will help us further ensure our players can trust that Underdog will give them a fun, fair, and secure environment to increase their enjoyment of sports.”
Underdog landing a deal with Sift comes as daily fantasy sports operators face regulatory scrutiny. Several states, including Michigan, have taken a stance on pick’em-style fantasy contests believing they resemble betting. Last October, Michigan banned all pick’em contests.
North Carolina and California are other states weighing the legality of fantasy contests.
Underdog continues to build business
Underdog has previously secured partnerships to ensure the legitimacy of its offerings.
In September 2023, Underdog secured a deal with ProhiBet to monitor the activity of coaches, officials, and professional and NCAA athletes to ensure the integrity of its contests. The pact will see ProhiBet prevent account creation and DFS entries from prohibited people.
Underdog could also leverage ProhiBet’s services when the company eventually launches sports wagering. The company recently applied for a sports betting operator license in North Carolina.
“The plan long term is to be the biggest company in the [sports betting] space,” Underdog CEO Jeremy Levine told SBC Americas last year. “The plan is to continue to build all of our own technology and product and really think about.”
