North Carolina regulators have issued financial penalties to two licensed sports betting operators after separate compliance failures tied to player protection requirements. The actions involve Underdog Sports and bet365, with the operators collectively facing $250,000 in fines following investigations by state regulators.
The penalties underscore the growing focus on compliance and consumer safeguards in North Carolina’s legal sports betting market. Since sports wagering launched in the state in 2024, regulators have emphasized the importance of age verification measures, responsible gambling programs and adherence to licensing requirements.
Underdog received the larger of the two penalties, totaling $175,000, after regulators determined that a flaw in its verification process allowed 38 individuals under the legal gambling age of 21 to create accounts.
According to regulators, eight of those accounts were used to place sports wagers before the issue was detected. State officials found that the accounts passed through age and identity checks that should have prevented underage users from accessing the platform.
The company reportedly disclosed the issue to regulators and cooperated during the review process. While the violations occurred when Underdog operated a sportsbook in North Carolina, the company exited the state’s sports betting market in late 2025.
Underdog was among the original operators approved when North Carolina launched online sports betting in March 2024. Since leaving the sportsbook market, the company has focused more heavily on daily fantasy sports and prediction market products.
bet365 was fined $75,000 for a separate compliance issue tied to the state’s self-exclusion program. Regulators found that a technical error resulted in promotional communications being sent to customers who had enrolled in self-exclusion protections.
North Carolina requires licensed sportsbooks to participate in a statewide voluntary self-exclusion system. Individuals on the list are intended to receive additional protections, including limits on promotional outreach and marketing communications.
According to findings reviewed by regulators, a malfunction prevented the state’s self-exclusion list from being properly incorporated into one part of bet365’s system. As a result, push notifications reached customers who should not have received them.
The operator reported the issue, worked with regulators during the investigation and implemented corrective actions. Those steps included updating internal procedures and providing additional employee training designed to reduce the risk of similar problems in the future.
The latest penalties demonstrate that North Carolina regulators continue to closely monitor licensed sports betting activity more than two years after the market launched.
While neither case involved allegations of game integrity concerns or large-scale consumer harm, both situations touched on areas that regulators view as critical safeguards. Preventing underage gambling and protecting participants in responsible gaming programs remain key regulatory priorities across the U.S. sports betting industry.
The enforcement actions serve as a reminder that licensed operators are expected to maintain strict compliance standards. As North Carolina’s sports wagering market continues to mature, regulators appear willing to issue penalties when those standards are not met, even when operators self-report problems and cooperate with investigations.
