Underdog to Close Sportsbook As Focus Shifts to Predictions

Underdog is ending its short foray into the world of regulated sports betting.

The DFS giant has announced that it will close its online sportsbook, which is currently available only in North Carolina. The platform will shut down as of December 18, but customers don’t need to rush to empty their accounts. The operator is offering several customer-friendly withdrawal options, and funds confirmed in the account will remain available on the Underdog DFS platform. 

Underdog cited its shift towards sports prediction markets as its reason for the exit.

Customers Get the Most Out of Closure

Underdog wants to send their customers off happy, which is why they are offering very friendly terms for the exit. The sportsbook will pay out all outstanding bets with the maximum winnings, including for parlay legs. On top of that, customers with bet credits can withdraw them for cash, which none of their rivals offer.

Unlike other sportsbook closures, customers of Underdog won’t need to rush to empty their accounts. That’s because all sportsbook accounts will merge into DFS accounts once it closes. Those funds will be available for withdrawal immediately or can be used for Underdog’s DFS site.

The strategy likely indicates that Underdog will soon launch its prediction platform in North Carolina, hoping that happy sportsbook customers will sign up.

Sports Betting Exit Started in November

While Underdog hadn’t provided an official plan or date for exiting the sports betting market, the writing was on the wall last month.

In a surprise move, the operators announced they would be forfeiting their Missouri sports betting license just weeks before the market went live. One of the reasons for the move was the company’s shift in focus towards sports predictions, which many states see as a direct threat to their regulated markets. Exiting Missouri would prevent clashes with the state regulator, resulting in costly fines and legal battles.

The reasoning made it clear that a North Carolina exit was coming, which has finally become official.

Underdog Takes High-Risk Gamble

Underdog’s small sports betting market share may make its shift in focus seem like an easy decision, but there is no question that the operator is taking a massive risk.

One big gamble Underdog is taking is that sports prediction markets will remain legal in their current form. Lawsuits against the industry have delivered mixed results, all while the Commodity Futures Trading Commission remains leaderless and understaffed. While the industry remains safe for now, its future remains murky.

Another risk is Underdog’s ability to compete. They struggle to win over sportsbooks' customers, and they’ll be facing familiar rivals with Fanatics, DraftKings, and FanDuel all entering the prediction industry. Then there are industry giants like Kalshi and Polymarket, who has far more experience and resources. 

While the DFS industry remains legal, it has also been under fire from state regulators. California is looking to ban the industry altogether, and other states could follow suit. 

All of this means that if Underdog’s prediction platform fails, it may no longer have anything to fall back on.