Underdog Exits Missouri Sports Betting Market Ahead of Launch
Underdog has officially withdrawn its application for an online sports betting license in Missouri. The decision comes less than one week before the state’s regulated market opens on December 1, 2025. This move effectively cancels the company’s planned entry into the jurisdiction and halts previously announced partnerships with the Kansas City Royals and the St. Louis Blues.
A Strategic Pivot to Prediction Markets
The withdrawal signals a shift in business priorities for Underdog. Rather than navigating the heavy regulatory requirements and tax obligations associated with traditional sports wagering, the company is allocating resources toward different verticals.
Mike Leara, Executive Director of the Missouri Gaming Commission (MGC), noted that Underdog is choosing to focus on its prediction market products.
Leara highlighted the regulatory disparity between the two sectors. “They have decided to go to that market. It’s not regulated at any level compared to what traditional sports betting is regulated, and obviously, there’s no tax on it,” Leara stated.
Underdog launched its prediction offering in September following a partnership with Crypto.com. This platform allows customers to buy and trade contracts based on performance outcomes in major sports leagues.
Underdog Predictions is currently live and accessible to users within Missouri.
Impact on the Starting Lineup
The sudden exit reduces the number of sportsbooks preparing for the December 1 launch. Only eight licensed operators now remain on the schedule to go live when the market opens.
While Underdog is stepping back from the sportsbook lane, it is not leaving the state entirely. The company continues to operate its daily fantasy sports (DFS) product, which is available in over 40 states, Washington D.C., and Ontario.
Regulators confirmed that Underdog’s existing operations are unaffected by the sportsbook withdrawal. An MGC member stated, “Underdog withdrew their application for a sports wagering license, but they maintain their fantasy sports contest operator license in good standing.”
Underdog confirmed the withdrawal of the application but did not provide further comment regarding the decision.
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