Underdog Among Five Daily Fantasy Sports Apps Leaving Maine

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Multiple daily fantasy sports apps including Underdog Fantasy are out in Maine, per an announcement from the state regulator.

Five DFS apps are no longer licensed to operate in the state, the Maine Gambling Control Board announced on social media Tuesday:

Apps decided not to renew

A spokesperson with the MGCB said the operators made “business decisions” and decided not to renew their licenses.

“In states across the country, we make business decisions on where to offer our games, and we chose to not pursue a renewal of our fantasy sports license in Maine,” an Underdog spokesperson said.

LSR could not locate contact information for the other four companies.

Underdog out after fine, complaint

Maine issued Underdog a $391,850 fine in October after the company failed to comply with a complaint that alleged its pick’em product was de facto sports betting.

In an initial response, Underdog maintained it offered “flexible fantasy contests” that allow “customers to select their own scoring parameters rather than being locked into an operator’s grid of fantasy points.”

Following the fine, Underdog said it would comply with the ban but looked forward to a final decision that agreed with its interpretation of the law.

States crack down on daily fantasy sports

More than a dozen states have taken action against certain DFS apps over the past year.

Colorado is considering a ban on DFS contests that mimic player prop parlays and pit players against the house, commonly referred to as “pick’em.”

Missouri directed pick’em operators to cease and desist operations in March, following a similar decision in Florida. Massachusetts also recently ordered a ban on pick’em.

Six daily fantasy sports apps remain

Underdog was the second-highest revenue-grossing DFS company in Maine in 2023, trailing only DraftKings.

Its $1 million in revenue was more than 72 times that of the four other former licensees combined, according to data from the MGCB.

The decision leaves Maine with six licensed fantasy sports apps: