Underdog is preparing to shut down its sports betting operations in North Carolina, the only state where its sportsbook is currently active. The company has notified regulators that it will stop accepting wagers on December 16, 2025, and will settle all remaining bets shortly afterward. The exit comes as Underdog pivots its strategy, marking a significant shift in how the operator approaches regulated gaming in the state.
Underdog’s exit from sports betting in North Carolina leaves only its fantasy sports offerings, which continue to be available to players in the state. While the company will stop accepting sports wagers on December 16, 2025, North Carolina users can still access Underdog’s pick’em fantasy contests and other fantasy game formats that are unaffected by the sportsbook shutdown.
Despite Underdog’s departure, the state maintains a robust lineup of licensed mobile sportsbooks, including Bet365, BetMGM, Caesars Sportsbook, DraftKings, Fanatics Sportsbook, FanDuel, and theScore Bet. These operators ensure that bettors in North Carolina continue to have access to a wide selection of regulated wagering options even as Underdog winds down its sportsbook product.
It will be interesting to see if other smaller operators, like theScore Bet, are able to maintain a foothold in the North Carolina market.
Underdog’s decision to close its North Carolina sportsbook appears tied to the increasing regulatory challenges facing smaller or newer betting operators. As compliance requirements grow more complex and costly, maintaining a full sportsbook becomes significantly more demanding. This is especially the case for companies that originally built their business around fantasy sports rather than traditional wagering, like Underdog.
The competitive landscape also plays a major role: DraftKings and FanDuel control the overwhelming majority of U.S. sports betting market share, making it difficult for smaller operators to gain meaningful traction or sustain customer acquisition at scale.
By exiting the sports betting space, Underdog can streamline operations and refocus on products more closely aligned with its core strengths, rather than attempting to compete with dominant national brands. It remains to be seen what route Underdog will take going forward.
Underdog’s withdrawal further consolidates North Carolina’s sports betting market around its largest operators, reinforcing a trend seen in other newly regulated states. With industry heavyweights like DraftKings, FanDuel, and BetMGM already commanding substantial user bases, the exit of a smaller competitor reduces market diversity and heightens the dominance of established brands.
For bettors, the practical impact will be minimal given the state’s wide selection of active sportsbooks, but the move underscores how challenging it has become for emerging operators to sustain full wagering platforms in a highly competitive and tightly regulated environment. As North Carolina’s market continues to mature, the gap between major sportsbooks and smaller entrants is likely to widen further.
