As reported by the North Carolina State Lottery Commission, the state’s sports betting handle increased by 128% year-on-year and reached $665.9 million in December 2025.
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Underdog to exit North Carolina betting market
Underdog is exiting the North Carolina sports betting market and will cease betting on December 16, 2025, with full sportsbook operations ending on December 17, 2025.
The operator plans to focus on daily fantasy sports (DFS) and prediction market products.
The company’s platform is unified and combines sportsbook and daily fantasy sports functionality, so North Carolina users will continue to access their balances through the same accounts.
Underdog’s decision comes after facing regulatory backlash in the US for its involvement in prediction markets. While North Carolina is a relatively new market, the problems with compliance have made it hard to remain in operation.
On December 5, 2025, Arizona regulators deemed Crypto.com’s sports event contracts illegal gambling. As a result of Underdog’s partnership with Crypto.com, the Arizona Department of Gaming informed Underdog that the company’s fantasy sports contest operator license would be revoked.
Although Underdog has held a license since August 23, 2021, regulators believe its association with prediction market-style products falls outside permitted fantasy sports activity.
The recent regulatory actions in Arizona show lawmakers’ concerns about blurring the lines between traditional gaming frameworks and newer products like prediction markets.
Former Kinston council candidate and community activist in North Carolina, Quarla Blackwell, is facing charges in connection with operating an illegal online casino on...
