Underdog Sports is preparing to exit the North Carolina sports betting market, shutting down its regulated sportsbook as the company narrows its focus on daily fantasy sports (DFS) and prediction market products.
The operator will cease accepting sports wagers in North Carolina on Tuesday (16 December), with full sportsbook operations ending the following day.
According to details shared by the company, all outstanding sports wagers are expected to be settled by this Thursday. Any futures bets that remain unresolved by that date will be paid out at the maximum possible amount.
For parlays with unsettled legs, Underdog has confirmed those components will be graded as winning selections regardless of subsequent results.
This is designed to simplify settlement and avoid prolonged account balances during the wind-down period.
Customers will retain the ability to withdraw funds throughout the closure process and afterward.
Because Underdog operates a unified platform that combines sportsbook and daily fantasy sports functionality, users in North Carolina will continue to access their balances through the same account credentials.
All unused sportsbook funds are being converted into withdrawable balances in users’ DFS accounts, ensuring uninterrupted access without requiring additional account actions.
The exit comes as Underdog faces mounting regulatory scrutiny elsewhere in the US, particularly related to its growing involvement in prediction markets.
The Arizona Department of Gaming informed Underdog earlier this month of its intent to revoke the company’s fantasy sports contest operator licence in the state.
The move was the result of concerns tied to its partnership with Crypto.com and the availability of sports event contracts across 24 states.
Gaming regulators in other states have warned of similar action for the same reasons.
Underdog reprimanded in Arizona over Crypto.com partnership
In a notice dated 5 December, Arizona regulators classified Crypto.com’s sports event contract offerings as illegal gambling under state law.
Underdog has had a valid fantasy sports contest operator licence in Arizona since 23 August 2021.
However, regulators have taken the position that its association with prediction market-style products exceeds the bounds of permitted fantasy sports activity in the state.
The regulatory action in Arizona highlights the increasing tension between traditional gaming frameworks and newer betting-adjacent products such as prediction markets.
Several state regulators have begun examining whether these offerings resemble unlicensed sports wagering, even when structured differently from conventional sportsbooks.
Underdog’s decision to leave North Carolina reflects a broader strategic recalibration as the company concentrates resources on DFS and prediction markets rather than maintaining sportsbook operations in every regulated jurisdiction.
While North Carolina represents a relatively new sports betting market, the onus of regulatory compliance across multiple product verticals has become more complex as scrutiny intensifies.
For North Carolina customers, the company emphasised that no immediate action is required beyond withdrawing funds at their convenience.
Underdog stated that customer support will remain available to assist with account access and withdrawals following the sportsbook’s closure, marking a definitive end to its brief tenure as a licensed sports betting operator in the state.