Underdog will pull its ‘Drafts’ product from Massachusetts, Maryland, Michigan, Mississippi, New Jersey, Pennsylvania and Ohio

Underdog Sports will surrender its fantasy sports licences in seven US states, choosing to prioritise its licensed prediction market business amid an ongoing regulatory clash with state authorities.

Founder and CEO Jeremy Levine confirmed the move in a post on X on 5 September. He said Underdog will pull its ‘Drafts’ product from Massachusetts, Maryland, Michigan, Mississippi, New Jersey, Pennsylvania and Ohio.

Drafts community, I have some not fun news to share. Right after kickoff on Wednesday, we will be shutting down Drafts in seven states: MA, MD, MI, MS, NJ, PA and OH. Already entered drafts will continue as normal, but in those states you won’t be able to enter new drafts. If…

— Jeremy Levine (@JerLevine) September 5, 2026

Consumers who have already entered drafts in each of these states will continue as normal. However, Underdog will no longer accept new drafts, with the service to close immediately after the first game of the 2026 NFL season begins tomorrow (9 September).

Levine said he was “really sorry” about the decision to withdraw from the markets. He set out that each state had “taken a legal viewpoint” that Underdog disagrees with in relation to prediction markets.

Underdog has secured approval from the Commodity Futures Trading Commission (CFTC) for its prediction market offering. However, Levine said the company had been informed by authorities in the seven states that if it offered these products, it would not be permitted to also run fantasy sports in each market.

“Those states have taken a legal viewpoint we disagree with, so we had to choose,” he said on X. “We could keep our fantasy licences in those states, or surrender the licenses and offer effectively our full experience, minus Drafts.”

Underdog CEO: decision to drop fantasy sports ‘sucks’

Levine went on to reiterate that it had not been an easy decision for Underdog to pull out of the seven states. The company’s heritage is in fantasy sports, having offered players in states across the US access to various contests since its launch in 2020.

“It sucks,” he said. “I love Drafts. It was the first game we ever launched and a big part of what built Underdog. Even though they don’t get anywhere near the usage of our other offerings, we still care deeply about them. 

“It pains me that we can’t do right by the Drafts community and offer the best experience possible to the most customers.”

Levine added that Underdog was working on plans to “get Drafts back to more customers”. However, while he was “optimistic” about identifying a solution, he said it was “too early to commit to anything”. 

“Until then, I don’t think there’s really anything I can say other than I’m sorry,” he added.

Comments under Levine’s post suggested the move has not gone down well among some users in the seven states. One user suggesting “dropping the stupid prediction markets shit” instead of fantasy sports. 

This is not the first time that Underdog has favoured its newer prediction markets product over its existing offering. In December last year, the company announced it was shutting its sportsbook in North Carolina as it narrowed its focus on fantasy and prediction markets.