Underdog announced Saturday morning that it is voluntarily surrendering its fantasy sports licenses in seven states where regulators have determined that operating a prediction market is incompatible with offering fantasy sports.
The states are Maryland, Massachusetts, Michigan, Mississippi, New Jersey, Ohio, and Pennsylvania.
This includes all draft products, including best ball.
“Those states have taken a legal viewpoint we disagree with,” wrote Underdog founder Jeremy Levine on social media site X. “If we offer our CFTC-licensed products we cannot offer fantasy sports in those states. So we had to choose. We could keep our fantasy licenses in those states, or surrender the licenses and offer effectively our full experience, minus Drafts.”
The shutdown goes into effect Wednesday evening after kickoff of the NFL season. People in the affected states who have already entered drafts will see their entries continue as normal.
‘It sucks’
“It sucks. I love Drafts. It was the first game we ever launched and a big part of what built Underdog,” Levine continued. “Even though they don’t get anywhere near the usage of our other offerings, we still care deeply about them. And it pains me that we can’t do right by the Drafts community and offer the best experience possible to the most customers.”
While this news will come as a disappointment to those in the affected states, Levine isn’t completely shutting the door on bringing the draft products back.
“We have some ideas about how to get Drafts back to more customers, but it’s too early to commit to anything yet,” he wrote. “I’m optimistic, and we’re definitely going to try. But until then, I don’t think there’s really anything I can say other than I’m sorry.”
Underdog agreed in July to be acquired by IG Group Holdings for $1.3 billion, giving the operator substantially more resources as it expands deeper into prediction markets.
Underdog, founded in 2020, built its business around fantasy sports before launching prediction markets in September 2025. The deal with IG Group, a London-based financial technology and online trading company, gives Underdog access to a much larger financial and technology platform.
