Arizona Reviewing Underdog Fantasy License Case

No final decision has been made on the Arizona Department of Gaming’s (ADG) notice of intent to revoke Underdog’s fantasy sports contest operator license, with discussions ongoing between the regulator and the company.

Underdog was originally given 30 days to respond to the notice, but an ADG spokesperson confirmed to Sports Betting Dime that the response deadline was waived while talks continue.

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Timeline of the Underdog Review

The ADG issued its notice of intent to revoke Underdog’s fantasy license on December 5. The action followed the department’s broader enforcement efforts against sports event contracts, which the agency has classified as illegal gambling under Arizona law.

In May, the ADG sent cease-and-desist notices to Crypto.com, Kalshi, and Robinhood, stating that their sports event contract offerings violated state gaming regulations. The department also warned licensed Arizona sports betting and fantasy sports operators in September not to partner with companies offering these products.

In a September 15 letter to Underdog’s legal counsel, the ADG specifically warned the company not to offer, enable, or sell sports event contracts in Arizona through a Designated Contract Market or Futures Commission Merchant.

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Underdog’s Crypto.com Partnership

Underdog launched prediction market products in early September after announcing a partnership with Crypto.com. The agreement allowed Underdog users in supported jurisdictions to trade and purchase sports event contracts across major leagues, including the NFL and college football.

According to the ADG, Underdog did not offer prediction market services directly in Arizona. However, the department concluded the company continued to enable the sale of sports event contracts nationwide through its partnership with Crypto.com, covering more than 20 states and Washington, D.C.

Crypto.com continued offering sports event contracts in Arizona until December 2 and maintained broader prediction market offerings through December 12. The ADG has not announced a timeline for a final determination on Underdog’s fantasy license status.