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00:00All right, finally, let's get to the fantasy operators here, Underdog and PrizePix.
00:08I know they have been, you know, under a lot of fire here over the past year.
00:11These peer-to-peer and also some of the picking games have been banned in some different places.
00:16What's the latest on those two companies?
00:18Yeah, this is kind of relates to what we were just talking about in terms of competition,
00:23other operators that have existed.
00:24Basically at this time last year, these companies, PrizePix and Underdog, offering products that
00:29a lot of people have said, hey, these are just player prop parlays.
00:32They're under fire in over a dozen states.
00:35And there was a real thought in the entire industry that maybe these companies won't
00:39exist anymore.
00:40I won't be able to kind of offer the sports betting adjacent product.
00:43Now you fast forward a year later, they're in more states with a different kind of product.
00:48They've shifted from this player versus house format where I would pick overs and unders
00:52on three players or more that are placed $10 in entry fees to win maybe 100, 200, something
00:59like that.
01:00They've shifted the mechanism with how the money works.
01:02So instead of playing against the house, you're playing in a pool of peers where the prizes
01:07are determined based off of what other people have put on the line.
01:11So it sounds kind of convoluted, but it's essentially allowing them to keep offering
01:16the same games in more markets with kind of the same structure and it's really paying
01:21off for them.
01:22We've seen investment banks saying that they now make up about 32 or 30 to 37% of all downloads
01:29this sports betting, this NFL season combined with sports betting apps and their downloads
01:34are up about 67% overall while the rest of the market kind of consolidates towards draftings
01:39and fan duels.
01:40So underdog kind of led the way with this peer to peer shift going to the state saying,
01:45I know you want to crack down on this.
01:47I know you don't want us to offer our products anymore.
01:50We'll now do it a different way.
01:51And they've used that to expand the market, expand the offerings and we're seeing it pay
01:55dividends for them as well.
01:57So what was kind of a huge story last year, they've kind of really turned into an advantage
02:00for the company.
02:01And we've even seen companies like DraftKings follow suit with their own Pick'em products
02:05in different states.
02:06So they kind of laid out this blueprint and it seems to be working for them.
02:10Now they still offer the player versus house product in states like California, states
02:14like Texas, where sports betting is illegal.
02:17That's kind of going to be the next battleground where this shakes out, whether or not they
02:21can keep doing that, whether those states, I don't know, wake up, whether those states
02:24finally care, whether they do care at all, California is examining it, but we don't
02:29know when that's going to happen.
02:30And whether the sports books now are kind of just okay with, you know, where this is
02:34shaken out, if they see this as kind of a win for them, or if, you know, the fantasy
02:38companies have kind of turned this around and say, we're just going to change the product
02:41and go to more markets because it seems to be working.