Underdog pulled its highest-profile product from another state Tuesday as it shut down its fantasy sports pick’em product in another market.
An Underdog spokesperson confirmed the operator shut down its DFS pick’em operation in Mississippi but declined further comment. The move comes a day after Underdog pulled its product from North Carolina ahead of the online NC sports betting launch March 11, when the operator plans to debut its sportsbook.
Tuesday’s exit also comes as legislators contemplate online Mississippi sports betting. There is also a growing number of legal sports betting states taking action against the prop-style pick’em products.
Underdog received guidance in Mississippi
In October 2023, the Mississippi Gaming Commission sent a letter to DFS operators including Underdog regarding prop-style pick’em products.
The letter emphasized the state’s existing rules. MGC Executive Director Jay McDaniel wrote that Mississippi does not allow player vs. house contests for DFS.
The company’s Draft product is still live, according to its website. In North Carolina, the company plans to launch its free pick’em product.
Month of exits for Underdog, PrizePicks
Along with North Carolina and Mississippi, Underdog has exited three other states in February. PrizePicks, which also operates a pick’em product, also exited those states.
Those states are:
- Arkansas
- Florida
- Kansas
Also this month, the American Gaming Association applauded regulatory action against “faux fantasy.”
Growing footprint of DFS regulatory action
Regulator scrutiny on the DFS pick’em products began heating up last summer. Since then, more than a dozen states have taken action on pick’em products.
Those states include:
- Arizona
- Colorado
- Maine
- Maryland
- Massachusetts
- Michigan
- New York
- Virginia
- West Virginia
- Wyoming
The DFS industry could also be facing a crackdown in California.
Shifting rules for DFS
North Carolina initially included a pick’em ban in its sports betting rules. Regulators rolled the rules back to streamline the sports betting launch but will likely take a closer look again in the future.
In Georgia, lawmakers are considering a bill that would be friendly to the DFS pick’em products. PrizePicks is headquartered in Atlanta.
DFS regulatory bills have also emerged in Florida and Illinois. In states without DFS regulation the products operate in a legal gray area as a game of skill rather than a game of chance.
LSR reporter Mike Mazzeo contributed to this report.
