Underdog has recently undergone substantial workforce reductions, with at least 125 employees affected, including a significant downsizing of its fraud operations team, which saw two-thirds of its members let go.

This shift coincides with the company’s transition away from traditional sports betting and paid fantasy draft contests towards a focus on prediction markets.

The scale of these layoffs is larger than originally reported. Earlier on Monday, Front Office Sports indicated that about 15 employees had been laid off, based on social media updates from those impacted. However, following that report, additional information surfaced, with one individual informing FOS that the actual number of layoffs exceeds 125, accounting for over 20% of Underdog’s workforce. According to LinkedIn, the company employs more than 600 individuals.

In a statement to FOS, Underdog CEO and founder Jeremy Levine pointed to the company’s pivot to prediction markets as the primary reason for the cuts.

“We transitioned our business this year. We went from a focus on a state-by-state framework to a national prediction markets platform with seamless offerings across the country,” Levine says. “It’s simply a different operation, and the changes we made are a part of that transition. We take pride in hiring people who are passionate, good human beings and who really care about their work, so if you’re hiring and come across an ex-Underdog person you’d be lucky to have them and call me for a reference.”