Underdog Fantasy Trims Offering in Multiple US States

There’s a range of daily fantasy sports (DFS) operators that are offering their services across the United States. But while some states permit the activity, in others, a regulatory framework is missing, which otherwise means that those companies operate in a grey area. With more states anticipating legislation and regulation of DFS, some companies are temporarily halting their operations with the ultimate goal of securing a license and operating legally.

Late last month, the gambling regulator in Florida, the Florida Gaming Control Commission, sent cease-and-desist letters to three DFS operators. The list included PrizePicks, Betr and Underdog Fantasy. Initially sent on January 31, 2024, the letters granted the operators a 30-day period to comply with the request and discontinue their offering for customers in Florida. The deadline for compliance with the rules is March 1, 2024.

More recently, Underdog Fantasy, one of the leading DFS operators across the country, trimmed its offering in multiple US states. Similar to Florida, Massachusetts sent letters to 10 DFS operators earlier this week, asking them to discontinue their parlay, pick’em and other games that are similar to sports betting. The letter was sent by the state’s Attorney General’s office, encouraging the operators to comply. While Underdog Fantasy did not receive such a letter, the company was among the operators that trimmed its offering, removing pick’em competitions for player versus house games, as announced by CDC Gaming Reports.

The Company Makes Changes to Its Offering in North Carolina, Mississippi

Besides in Massachusetts, Underdog implemented further changes to other markets where it is present. In Mississippi, the company halted the operations of its platform this week. The strategic action comes while lawmakers in the state are currently reviewing legislation that may pave the way for legal sports betting in the state. If such legislation passes, DFS operators, such as Underdog, may have a chance of securing a license that would permit them to offer daily fantasy sports.

Similarly, in North Carolina, Underdog discontinued its pick’em product offering earlier this week. The company is one out of nearly a dozen betting firms that anticipate securing a betting license in the state. North Carolina is expected to launch its legal sports betting market early next month.