Ahead of the first planned Underdog Sportsbook launch for NC sports betting, the company has pulled its controversial pick’em product out of North Carolina.
Underdog issued a customer notice Monday stating that its daily fantasy sports pick’em product has been turned off in North Carolina, two weeks ahead of the debut of online NC sports betting. The notice said Underdog will offer a free entry contest later this week.
“You’ll have five free entries each day after its launch. You’ll build your entries like before, but now at no cost. If your entries hit, you’ll win withdrawable cash. You can still partake in our drafts as usual. Thank you for all the support,” it reads.
Underdog NC sports betting hopes
The company is working with the North Carolina Education Lottery to secure a license for Underdog Sportsbook in the Tar Heel State. The NC Lottery has not issued any licenses as of Tuesday morning.
In initial sports betting rules, regulators banned fantasy sports pick’em games offered by operators like Underdog and PrizePicks. However, they rolled back the rule to ensure a more efficient sports betting rollout. Regulators said they will look closer at the product after sports betting launches.
Underdog declined comment to LSR through a spokesperson. North Carolina is slated to launch legal online sports betting on March 11, prior to the start of March Madness betting.
Sports betting license access in NC
With Underdog pulling pick’em out of the state, industry observers told LSR that they believe the operator is taking a cautious approach to ensure its sports betting licensing process stays on course.
In January, Underdog partnered with McConnell Golf and Sedgefield Country Club to secure market access in North Carolina.
The operator is one of eight platforms expected to launch next month.
Pick’em regulatory scrutiny
As a result of increased regulatory pressure, multiple pick’em companies recently agreed to exit major markets like New York and Florida. Earlier this month, Underdog was among operators ordered to leave Arkansas and Kansas.
Over the last year, almost a dozen states have taken action against apps offering products regulators determined to fall more in line with sports betting. Other states to take action or look at the pick’em products include:
- Arizona
- California
- Maine
- Michigan
- Mississippi
- Virginia
- Wyoming
