Daily Fantasy Sports Giants Pivot to Prediction Markets as PrizePicks Exits Canada and Underdog Slashes Workforce

DFS giants PrizePicks and Underdog are pivoting to prediction markets. Learn why PrizePicks is leaving Canada and Underdog is cutting 20% of its staff.

By: AXL Media

Published: Mar 4, 2026, 9:51 AM EST

Source: The information in this article was sourced from Gambling Insider

The Strategic Retreat from International Markets

In a move to consolidate its resources within the United States, PrizePicks has confirmed it will "pause" its operations across Canada effective April 3, 2026. The company will stop accepting deposits after March 9, providing a window for users to withdraw funds before the final April 2 deadline. This exit from all Canadian provinces (excluding Ontario, which it previously exited) marks a significant shift for the operator as it seeks to navigate a complex U.S. regulatory environment and prioritize domestic growth in newly accessible sectors.

Internal Restructuring and Mass Layoffs at Underdog

Parallel to the PrizePicks exit, rival operator Underdog has initiated a major internal reorganization, resulting in the layoff of approximately 125 employees—over 20% of its total workforce. The cuts hit the company’s fraud and customer operations teams particularly hard. Founder and CEO Jeremy Levine characterized the move as a "difficult but necessary" step to focus on areas with the greatest long-term opportunity, specifically pointing toward the burgeoning sector of prediction markets as the company’s new strategic north star.

Prediction Markets: The New Frontier in Non-Betting States

The pivot toward prediction markets is driven by a unique regulatory advantage: unlike traditional sports betting, which is governed by individual state laws, prediction markets fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC). This federal oversight allows operators like Underdog and PrizePicks to offer event-based contracts in massive, untapped markets such as California and Texas, where traditional sports wagering legislation has repeatedly stalled. Furthermore, these platforms benefit from not paying state-level taxes on revenue, offering a more profitable path forward.