Missouri Gaming Commission (MGC) Executive Director Mike Leara confirmed Underdog Fantasy will no longer be entering the state's new sports betting market on December 1, as the operator will instead focus expansion to where prediction markets have not yet been regulated in the US.
"They have decided to go to that market," Leara said.
"It's not regulated at any level compared to what traditional sports betting is regulated, and obviously, there's no tax on it."
Underdog had taken the necessary steps to join Missouri's sports betting market prior to the November 25 decision, such as forming a new partnership with the Kansas City Royals MLB franchise on September 30 to gain market access to the state.
At the time of announcement, Underdog's sports betting license was still under review by the MGC, but the operator continued to forge new collaborations across the state, including a new agreement with the St. Louis Blues NHL franchise earlier in 2025.
Underdog officially entered the prediction markets industry in September after forming a new partnership with Crypto.com, which offers Commodity Futures Trading Commission (CFTC)-regulated contracts on the outcome of specific events.
While the MGC had not taken a stance on prediction markets prior to Underdog's decision, states such as Michigan, Ohio, Pennsylvania and Arizona all issued warnings to licensed operators of bringing contract trading offerings into the respective markets.
Leara stated Underdog chose to withdraw its sports betting license application earlier in November, but failed to confirm whether additional exits are anticipated by the MGC.
DraftKings, FanDuel, PrizePicks and Fanatics have also entered the prediction markets industry in 2025 and will begin offering event contract trading to users by the new year.
DraftKings and FanDuel were among the first operators to gain market access in Missouri, while Fanatics formed a new agreement with Boyd Gaming on August 25. BetMGM, Circa Sports, bet365 and Caesars sportsbook will all launch sports betting operations in Missouri on December 1 as well.
Analysts believe Missouri bettors will produce a handle of $3.88bn over the first year of operations, running through December 1, 2026, and nearly $65.7m in wagers across the opening week
