Underdog and Four Other Daily Fantasy Sports Operators Exit Maine
The Maine Gambling Control Unit (MGCU) has announced the exit of five Daily fantasy sports (DFS) operators from its market following their failure to renew their licenses.
LISTEN TO THIS ARTICLE:Underdog, Data Force, Bidventures, Boom Shakalaka, and Sportshub will be ceasing operations in the Pine State after the deadline the MGCU gave them to renew their approvals has passed. With the development, Maine’s DFS market has now been reduced to six operators, including DraftKings, FanDuel, Yahoo, and RealTime Fantasy.
Underdog Fined Heavily for Regulatory Breaches
The MGCU didn’t disclose the reasons why the operators decided not to apply for their license extension. However, Underdog’s decision may be linked to the recent penalty it received in the state.
In October 2023, Underdog was fined $391,850 for alleged regulatory breaches related to its pick ’em-style DFS contests. The penalty followed a formal complaint by the MGCU requiring Underdog to provide it with information regarding its pick 'em-style contests.
Underdog started the contests in 2021 and has reportedly earned over $1.4m in total net revenue, which was generated from 7,837 unique customers. According to the regulator, the fine imposed on Underdog equates to a $50 charge for each of its customers in Maine. However, the operator was offered a chance to petition for an adjudicatory hearing with the Commissioner of the Department of Public Safety.
More Regulation News
US States Sanction DFS Operators
Recently, several states in the US have been acting against erring DFS operators in their jurisdictions. In February, the Arkansas Department of Finance and Administration issued cease and desist letters to Underdog and PrizePicks for their DFS contests, which contravene Amendment 100 to the Arkansas Constitution due to their similarity to sports betting.
During the same month, the Florida Gaming Control Commission ordered Betr, Underdog, and PrizePicks to stop their operations in its jurisdiction.
Competition Behind Underdog’s Travails?
In August 2023, Underdog’s co-CEO and founder Jeremy Levine gave an interview that hinted that there could be an element of competition behind the regulatory travails it is facing in several states.
According to him, DraftKings and FanDuel were instrumental in shaping sports betting legislation that inherently hindered the entry of competitors into the market. He criticized the operators for attempting to discredit their competitors, including those venturing into the fantasy sports sector, by labeling their fantasy sports contests as illegal.
Levine concluded by reiterating Underdog’s dedication to sports fans, vowing to continue delivering groundbreaking experiences that resonate with their passions.
RELATED TOPICS: Regulation
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