DraftKings and FanDuel Keep Their Licenses Safe, Analysts Report : PMPMedia.io

By Arijit Roul - 19 Dec, 2025 More about the author

DraftKings and FanDuel will keep their licenses in Arizona. Citizens analysts believe Arizona’s action against Underdog won’t affect them. The state removed Underdog’s fantasy sports license because of its connection to Crypto.com. Both companies chose the safest path to avoid problems with the states. They plan to start their own prediction market platforms soon. A source told Citizens the platform would launch on December 12.

Third-party issues pushed back the launch date. Arizona became the first US state to remove a fantasy license over prediction markets. The state sent its decision letter to Underdog on December 5. The letter became public last week. Arizona removed the license because Underdog works with Crypto.com. Crypto.com runs Underdog’s prediction market platform.

Other Companies Face an Unknown Future

Citizens analysts think this decision affects more than just Arizona. Underdog must tell other states why it lost its license. The company operates in multiple states across the country. Arizona took the license even though Underdog has no active prediction market there. This action might influence other sports betting states. Citizens checked DraftKings and FanDuel’s business connections carefully. Neither company works with entities Arizona considers illegal. CME Group avoids offering sports contracts in legal sports betting states. DraftKings bought Railbird to handle possible regulatory changes.

Citizens believe Fanatics and PrizePicks might have problems. Fanatics holds a high single-digit handle market share in Arizona. The company started Fanatics Markets with Crypto.com two weeks ago. PrizePicks works with Kalshi and Polymarket. Arizona sent cease-and-desist letters to both platforms. The analysts worry about Arizona’s inconsistent enforcement approach. Arizona gave Bet365 a gaming license despite its black market exposure in China. Now the state removes licenses for services not operating there.