Underdog makes a choice - sports betting in Missouri out, prediction markets a focus

• Underdog has quietly withdrawn its bid for Missouri’s sports betting market
• The operator was previously promoting heavily its now-cancelled launch for Monday, December 1
• The issue was supposedly Missouri’s growing hawkishness on prediction markets

Underdog has become the latest company to drop plans over traditional sports betting in at least one state, as the company has cited local animosity towards prediction markets as a reason why.

States such as Nevada and now Missouri have openly stated that operating prediction markets anywhere in the country could make local sports betting license holders ineligible for a license. This has prompted Underdog to exit Missouri, even though the company originally intended to launch on Monday, December 1.

No love for prediction markets makes Underdog reconsider sports betting bid

The Missouri Gaming Commission (MGC) has confirmed the licensee’s exit but has not explicitly stated that the issue had to do with Underdog’s broader strategy for prediction markets, refusing to comment on the particularities as such.

The withdrawal is surprising, given that Underdog was gearing up to make a splash in the sports betting market, but the commission’s growing animosity towards the prediction market has most likely made it reconsider this decision.

This would not be entirely surprising. FanDuel and DraftKings have surrendered their licenses in Nevada, with FanDuel due to open its own standalone prediction market app – FanDuel Predicts. DraftKings is also reportedly close to launching an offer of its own.

Underdog is currently involved in a partnership with Crypto.com, focusing on prediction markets specifically. In the meantime, legal challenges to the vertical continue all over the place. Kalshi has recently suffered a blow in Nevada, where a judge ruled that the platform should stop offering prediction markets.

The company has sought a stay on the ruling but has not received one. In the meantime, Nevada’s regulators have said that Kalshi has not complied as of earlier this week with the ruling and continued to offer its products.

Other companies have been making strides in the sector, including PrizePicks and Polymarket, with the latter recently obtaining a license in the United States and poised to relaunch.

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