A daily fantasy sports operator is changing how it does business in the Tar Heel State.
Underdog Fantasy informed customers on Monday that it’s no longer offering its fee-based pick'em-style contests in North Carolina, according to a report from Saturday Down South.
Underdog declined to comment on the decision to switch to free games. Users will receive five unpaid entries daily with a chance to earn cash that can be withdrawn or used on Underdog’s platforms.
Any paid entries before the notice will be honored by the site.
Why the switch?
DFS has been a hotly contested operation in U.S. states that have and don’t have legalized sports betting. North Carolina approved sports wagering in 2023 and will launch online operations on March 11.
One of the operators to have applied for a license is none other than Underdog, which is creating a new traditional sportsbook that’s regulated like DraftKings and FanDuel.
Underdog partnered with McConnell Golf, which owns Sedgefield Country Club, site of an annual PGA Tour stop in Greensboro, N.C.
Underdog is entering a crowded, competitive space that already includes eight soon-to-be licensed sportsbooks in the Tar Heel State.
North Carolina sports betting currently has no laws against DFS, but the state’s lottery commission, which regulates and licenses sports betting, has said that it will eventually get around to making decisions on the legality of DFS.
It’s possible that Underdog doesn’t want to get into a position where its fee-based prop-betting contests that some regulators believe mimic sports betting could put its online sportsbook licensing at risk.
Tough times for DFS
Underdog Fantasy isn’t the only DFS operator to recently alter pick’em-style games.
Underdog, along with PrizePicks and Betr, received cease-and-desist letters from the Florida Gaming Control Commission on Jan. 31. PrizePicks and Underdog have already informed customers they'll stop operating in the Sunshine State on March 1.
PrizePicks reached a $15 million settlement with the New York Gaming Commission after the regulatory body determined the DFS site was operating illegally in the Empire State, where it’s hoping to obtain a license.
Underdog Fantasy currently offers pick’em contests in 34 U.S. jurisdictions. That includes South Carolina, Georgia, Tennessee, and Virginia, which all border North Carolina.
