Underdog Sports Pulls Controversial Daily Fantasy Sports Pick ‘Em Ahead of North Carolina Launch

Underdog Sports announced Monday that they will not offer DFS pick ‘em games ahead of their North Carolina launch. However, they will still offer a free-to-play DFS contest for the launch. 

“You’ll have five free entries each day after its launch. You’ll build your entries like before, but now at no cost. If your entries hit, you’ll win withdrawable cash. You can still partake in our drafts as usual. Thank you for all the support,” Underdog shared in a statement about the decision.

North Carolina initially banned DFS games when they legalized sports betting but reversed the rule in the hopes that it would lead to a smoother launch of the new industry. 

Underdog has run into issues with their daily pick ‘em style games in several other states. DFS has been a hot button for regulators nationwide. The problem is that regulators believe this style of DFS is essentially a form of sports betting but does not have the same rules and tax rates as sportsbooks.

Kansas and Arkansas have forced Underdog Fantasy out of their markets for this style of DFS offering. New York and Florida have taken similar steps with DFS operators in their states. Underdog refrained from offering the controversial DFS game in North Carolina to avoid a similar situation in the Tar Heel State.

North Carolina bettors will be able to start signing up with online sportsbooks this Friday before sports betting goes live on March 11. 

Still No Operating License Approvals

As of Wednesday, the North Carolina Lottery Commission (NCLC) has not officially approved any online operators before the March 1 pre-registration window. The regulator did share that eight sportsbooks are on track to be approved by Friday.

The Tar Heel State has dealt with many delays since legalizing sports betting in June 2023, missing their targeted January launch by about two months.