- Underdog announced it has given up its daily fantasy sports licenses in seven states
- Underdog Founder and CEO Jeremy Levine announced the decision over the weekend
- The company was forced to choose between offering draft competitions or predictions markets in the states
Underdog is getting out of the daily fantasy sports competition business in seven states.
Underdog CEO and Founder Jeremy Levine announced on Saturday, Sept. 5, the company will be shutting down its daily fantasy sports draft competitions in seven states following the NFL’s kickoff on Wednesday, Sept. 9.
The company will surrender its daily fantasy sports licenses in Massachusetts, Maryland, Michigan Mississippi, New Jersey, Pennsylvania and Ohio.
Focusing on Predictions
Customers who have already entered draft competitions in those states will continue as normal, but no new competitions will be offered past Wednesday.
“Drafts community, I have some not fun news to share. Right after kickoff on Wednesday, we will be shutting down Drafts in seven states: MA, MD, MI, MS, NJ, PA and OH. Already entered drafts will continue as normal, but in those states you won’t be able to enter new drafts. If you’re a drafter in one of those states, I’m really sorry,” Levine said.
Levine noted the seven states have told Underdog they cannot offer both daily fantasy sports competitions and prediction markets in their jurisdictions. Massachusetts, Maryland, Michigan, New Jersey, Pennsylvania, and Ohio have all taken a hardline stance against prediction markets, each state filing lawsuits alleged prediction market sports event contracts are akin to illegal sports betting.
Mississippi has not filed any litigation against the prediction market industry, but Attorney General Lynn Fitch joined a bipartisan, multi-state coalition asking the federal government to allow states to regulate sports event contracts.
“This sucks, but I want to explain why. Those states have taken a legal viewpoint we disagree with: if we offer our CFTC-licensed products we cannot offer fantasy sports in those states. So we had to choose. We could keep our fantasy licenses in those states, or surrender the licenses and offer effectively our full experience, minus drafts,” Levine said on social media.
Looking for a Solution
Levine bemoaned the decision and said “we have some ideas about how to get drafts back to more customers,” but said it was too early to offer any details on how that may be possible.
“It sucks. I love Drafts. It was the first game we ever launched and a big part of what built Underdog. Even though they don’t get anywhere near the usage of our other offerings, we still care deeply about them. And it pains me that we can’t do right by the drafts community and offer the best experience possible to the most customers,” he said. “We have some ideas about how to get Drafts back to more customers, but it’s too early to commit to anything yet. I’m optimistic, and we’re definitely going to try. But until then, I don’t think there’s really anything I can say other than I’m sorry.”
Built on Daily Fantasy Sports Drafts
Launched in 2020 as a company focusing on daily fantasy sports, Underdog has found recent success through its prediction market offerings. IG Group Holdings, a global financial technology company, announced the acquisition of Underdog Sports Holdings in a deal worth upwards of $1.3 billion over the summer, largely due to its success in the prediction market space.
IG Group Holdings announced the acquisition of Underdog for a $1.1 billion consideration and $200 million payable to Underdog’s shareholders.
The sports prediction market and fantasy sports operator announced on Saturday, July 18, it launched its own federally licensed prediction market exchange, which is licensed by the Commodity Futures Trading Commission (CFTC).
Prior to launching its own exchange, Underdog offered prediction market access through partnerships with Crypto.com and Kalshi.
In March 2026, Underdog announced the acquisition of Aristotle Exchange DCM, Inc., and Aristotle Exchange DCO, Inc., both CFTC registered designated contract market (DCM) and derivatives clearing organizations (DCO).
Underdog has found a steady footing in the prediction market space. Levine appeared on CNBC with Contessa Brewer in August and shared prediction market volume numbers since September 2025. According to Levine’s numbers, Underdog only trailed Kalshi and Robinhood in terms of total notional volume flow since the fall, ahead of Polymarket, DraftKings, and FanDuel.
- DraftKings: $1.2 billion
- Kalshi: $86.5 billion
- Robinhood: $32.5 billion
- Underdog: $6.49 billion
- Polymarket: $6.48 billion
Robert is an expert on sports betting in the United States, specifically the legalization process and regulation surrounding the industry.
