Underdog Pick’em Adjusts Operations Amid Regulatory Challenges

In North Carolina, the withdrawal is part of Underdog’s efforts to secure an online sports betting license, signaling a shift towards embracing the upcoming sports betting market. Meanwhile, in Mississippi, the platform’s paid contests have been discontinued amidst a broader scrutiny of DFS contests by state regulators, reflecting a challenging environment for DFS operators across the United States.

Strategic Shift in North Carolina

In North Carolina, Underdog’s decision to remove its “Pick’em Classic” paid contests is a proactive move ahead of the state’s anticipated sports betting launch on March 11. This strategic pivot aims to align Underdog’s offerings with the forthcoming regulatory landscape, underscoring the company’s commitment to compliance and market participation. Underdog’s planned transition to offering sports betting, subject to licensing approval, reflects its adaptability and focus on growth within the regulated gaming sector.

In contrast, the scenario in Mississippi presents a different challenge, with Underdog ceasing its paid contests without immediate plans for sports betting offerings. This decision comes as Mississippi progresses towards legalizing online betting, adding another layer to the complex regulatory environment faced by DFS and sports betting operators alike.

Nationwide Scrutiny on DFS Operators

The challenges faced by Underdog in Arkansas, where it was classified alongside PrizePicks as a “sports betting” provider, exemplify the increasing regulatory scrutiny on DFS platforms. This trend, highlighted by actions taken by the Arkansas Department of Finance and Administration, raises concerns about the sustainability and classification of DFS contests in various jurisdictions.

Amidst these regulatory challenges, Underdog Fantasy’s co-founder Jeremy Levine has vocally addressed the pressures facing the DFS industry. Accusing industry giants FanDuel and DraftKings of stifling competition through lobbying efforts, Levine’s letter to the Underdog Community emphasizes the company’s commitment to fair play and adherence to DFS regulatory standards.

Our Comment on the Article

Underdog Pick’em’s recent operational adjustments in North Carolina and Mississippi, coupled with the broader regulatory challenges faced by DFS platforms, underscore the evolving landscape of the gaming industry.

As states navigate the complexities of regulating DFS and sports betting, companies like Underdog are at the forefront of adapting to these changes while advocating for fair competition and regulatory clarity. The outcome of these developments will be pivotal for the future of DFS and sports betting in the U.S., with implications for operators, regulators, and consumers alike.