Underdog Sports will surrender its fantasy sports licences in seven US states as it prioritises prediction markets.
Founder and CEO Jeremy Levine confirmed the decision on 5 September, saying Underdog will remove Drafts from Massachusetts, Maryland, Michigan, Mississippi, New Jersey, Pennsylvania and Ohio.
Existing entries will continue, but no new drafts will be accepted once the first game of the 2026 NFL season begins on 9 September. Levine said he was “really sorry” about the withdrawal. He explained that each state had “taken a legal viewpoint” that Underdog disagrees with regarding prediction markets.
Underdog has approval from the Commodity Futures Trading Commission, but Levine said state authorities made clear the company could not run both products.
“Those states have taken a legal viewpoint we disagree with, so we had to choose,” he said on X. “We could keep our fantasy licences in those states, or surrender the licenses and offer effectively our full experience, minus Drafts.”
Levine says dropping Drafts was a difficult decision
Levine said the move was difficult because Drafts was Underdog’s first product.
“It sucks,” he said. “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.
“It pains me that we can’t do right by the Drafts community and offer the best experience possible to the most customers.”
Underdog hopes to restore fantasy access later
Levine said Underdog is working on ways to bring Drafts back to more customers. He added that he was “optimistic” about finding a solution but said it was “too early to commit to anything”.
“Until then, I don’t think there’s really anything I can say other than I’m sorry,” he added.
Some users criticised the decision, arguing Underdog should have dropped prediction markets instead. The move shows how strongly Underdog is backing prediction markets despite friction with state licences.
In December 2025, Underdog shut its sportsbook in North Carolina as it narrowed its focus toward fantasy sports and prediction markets. The latest withdrawal suggests prediction markets now take priority where state rules force the company to choose between product lines across parts of its US business.
Underdog’s decision shows how prediction markets are becoming strategically important enough to outweigh established fantasy products in some states. The risk is that the company gains more product flexibility while frustrating loyal fantasy users. This might also deepen regulatory conflicts with state authorities.
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