Underdog has revealed that it has surrendered its daily fantasy sports licenses in 7 U.S. states in order to be able to keep offering its prediction market products in those jurisdictions.
The company announced that it will stop accepting new entries for its Drafts competitions in Massachusetts, Maryland, Michigan, Mississippi, New Jersey, Pennsylvania, and Ohio after September 9, 2026.
Underdog CEO and Founder Jeremy Levine revealed that the decision was made after the affected states told the company it couldn’t offer both fantasy sports and prediction markets at the same time.
Levine wrote on his X account:
“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 Underdog had to choose between keeping its fantasy licenses and continuing with its prediction market products, with the move also coming as the legal fight over prediction markets grows in the U.S.
Levine further explained:
“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.”
The decision gives Underdog a clearer path to continue its prediction market business while removing its draft-style fantasy contests from the seven states.
