Underdog Changes To Peer-To-Peer Fantasy Sports In Arizona

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Fantasy sports

Two weeks ago, fantasy sports operator Underdog Fantasy switched from player vs. house to peer-to-peer pick’em in Arizona

The switch was made the day before new fantasy sports regulations in Arizona that prohibit against the house pick’em went into effect. 

“We’ve moved to our peer-to-peer pick’em product in Arizona, in compliance with the new regulations that went into effect this month,” an Underdog spokesperson said recently.

Fantasy sports pick’em changes

Underdog made the same player vs. house to peer-to-peer pick’em switch in Massachusetts earlier this week, avoiding a cease-and-desist letter in the process.

Jurisdictions have increasingly taken action against pick’em contests in the past few months.

Underdog’s status in North Carolina

On Thursday, North Carolina regulators issued Underdog a sports betting license operator license. It elected to pull its DFS pick’em product in the Tar Heel State prior to March 11 sports betting launch. However, it will offer a free entry contest.

“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,” a notice to North Carolina customers reads.

Arizona regulator on DFS

In November, the Arizona Department of Gaming ordered a stop to DFS pick’em contests. The regulator found that they were not compliant with the jurisdiction’s DFS laws

“The disputed wagers are not fantasy sports contests because a key piece of a fantasy sports contest is that participants create teams and compete against one another in simulated games,” assistant director of compliance Andrea Milford wrote in a guidance letter, obtained by LSR. “The disputed wagers do fit squarely within the definition of event wagering. So, they may only be offered by properly licensed event wagering operators.”

Milford directed LSR to the communications office for additional comment.

“Underdog is a licensed operator in Arizona,” a spokesperson for the state regulator said earlier Thursday.