The move follows an opinion from state Attorney General Rob Bonta declaring daily fantasy sports illegal under California law. Players in the old pick’em game now compete in the Champions format, where they face off against each other rather than the house.
But why did Underdog make the switch, and what does it mean for California fans?
Legal Background
The change came after California Attorney General Rob Bonta issued a nonbinding opinion stating that all paid daily fantasy sports in CA, including pick’em and peer‑to‑peer games, may violate state law.
The opinion, released on July 2, 2025, did not carry the force of law but increased uncertainty for operators in the state. Underdog tried to block its release in Sacramento court, but the judge denied that request. Despite these questions, no court has formally ruled on DFS in California, leaving the future of these games unclear.
Underdog filed a lawsuit asking the court to stop the opinion’s publication on the same day that competitor PrizePicks switched its pick’em contests to a peer‑to‑peer model. PrizePicks made its switch two weeks earlier, in early July 2025, after facing the same legal scrutiny.
These moves mirror actions by other operators in states like Florida and Texas, where peer‑to‑peer formats have allowed fantasy sites to keep running under local rules. In California, the peer‑to‑peer change is now live for select games on Underdog’s platform.
Peer‑to‑Peer Format Explained
Under the new Champions format, players pay an entry fee and compete against one another for a shared prize pool. This replaces the old pick’em setup where users picked player stats and bet against Underdog for a fixed payout.
The Champions game first launched in January 2024 and is now available in several states, including California. Players still make lineups and predict performance, but the outcome hinges on head‑to‑head results.
Players can join games with small or large buy‑ins, making it easy for casual and serious fans to play. The prize pool grows with each entry, and users see real‑time standings as games progress.
Underdog says the peer‑to‑peer model offers more social interaction, since players cheer or root against friends. The company also notes that payouts may vary, as winners split the pool based on their finish.
For California players, the switch means the only available pick’em title is Champions. The against‑the‑house pick’em disappeared from the site, and draft contests remain unchanged. Underdog expects fans will enjoy the head‑to‑head competition, which mirrors fantasy sports in other states.
Since Champions has no fixed odds, winnings depend on how many users join a contest and how they perform.
Underdog highlights that Champions is the company’s most popular DFS game in several states and says the format helps maintain operations amid regulatory shifts. The operator believes the peer‑to‑peer change will protect its California business and keep contests available without interruption.
Players still need to be at least twenty‑one years old and follow responsible gaming practices on the site.
Despite the peer‑to‑peer shift, the attorney general’s opinion covers all DFS games, meaning further regulation or court rulings could affect Champions in the future.
For now, Underdog and its fans can play peer‑to‑peer pick’em contests, and the industry watches closely to see if California regulators take new action.
