Underdog Fantasy has chosen to discontinue sports wagering operations in North Carolina as of December 16, but will continue offering fantasy games to residents of the Tar Heel State.
As part of a Regulated Gaming Committee meeting on December 10, the North Carolina State Lottery Commission confirmed Underdog reached out "before Thanksgiving" to claim it was making a "business decision" by ceasing sports wagering operations.
In an email addressed to North Carolina customers, Underdog stated "we're grateful to have you as part of the Underdog community and can't wait to keep delivering great experiences your way."
The operator will honor any wagers placed before December 17, at which time all futures wagers which have not been settled will be paid out as a win and automatically redeemed to respective Underdog accounts.
Following Underdog's exit, North Carolina now hosts seven licensed operators, including FanDuel, DraftKings, Fanatics, Caesars Sportsbook, BetMGM, bet365 and theScore Bet.
The operator also launched a new webpage to assist North Carolina bettors with the transition, and will continue working with regulators to ensure all exit obligations are met.
The decision now means Underdog will no longer operate a sportsbook in the US, having also pulled out of Missouri prior to the state's newly regulated online sports betting market going live on December 1.
Underdog stated it will instead focus expansion to where prediction markets have not yet been regulated in the US after forming a partnership with Crypto.com in September.
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 Missouri regulators, but the operator continued to forge collaborations, including an agreement with the St. Louis Blues NHL franchise earlier in 2025.
Underdog Fantasy formed a new agreement with Sportradar in September to integrate its Bettor Sense responsible gaming solution, representing the first US-based operator to utilize the AI-powered program
