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Underdog, the fast-growing fantasy and sports gaming operator, has officially withdrawn from the Missouri sports betting market just days before the state’s long-anticipated launch on Dec. 1.
The exit marks a significant pivot for the company, which now plans to refocus on developing predictions market-style games rather than operating a traditional wagering site.
That leaves the state with eight Missouri online sportsbooks when the market launches on Monday.
Operator withdraws ahead of launch
Underdog had previously secured a sports wagering license from the Missouri Gaming Commission and had positioned itself to enter the state alongside major operators.
The company had even aligned with professional sports partners, including the Kansas City Royals and St. Louis Blues, signaling serious intent to build a foothold in the Missouri market.
However, according to statements provided to Fox 2 St. Louis, Underdog informed regulators that it would not move forward in sports wagering.
Mike Leara, executive director of the Missouri Gaming Commission, confirmed Underdog’s exit.
“They have decided to go to that market. It’s not regulated at any level compared to what traditional sports betting is regulated, and obviously, there’s no tax on it.”
Underdog ventured into the sports wagering market in North Carolina but hasn’t generated much success. Instead of competing with DraftKings Sportsbook, FanDuel Sportsbook and BetMGM Sportsbook, the operator decided to go all-in on prediction markets.
Future lies in predictions markets
Instead of continuing to pursue traditional sports wagering expansion, Underdog is shifting strategic focus toward prediction-based games. It’s an emerging category that blends elements of fantasy contests with probabilistic forecasting.
These products typically allow users to predict statistical or situational outcomes rather than place regulated wagers.
The move aligns with Underdog’s recent emphasis on pick-style daily fantasy sports games and its push for new formats that lean on data, forecasting, and user engagement.
Underdog would be able to offer markets on cultural events and entertainment, such as award shows, political elections, and celebrity news.
Regulatory, competitive pressures may have influenced decision
Missouri’s upcoming sports wagering launch is expected to draw major national operators, raising the competitive bar for smaller or newer sportsbook entrants.
Combined with licensing costs, compliance demands, and increasing tax-rate pressures across the country, the legal environment has become more challenging for operators looking to scale quickly.
Underdog’s withdrawal suggests the company is prioritizing product innovation and national flexibility over state-by-state sportsbook rollouts. By focusing on prediction-market tools, the company can operate more efficiently without facing the same regulatory hurdles that accompany full-scale sports wagering platforms.
Underdog is following a similar path as PrizePicks.
What it means for Missouri bettors
For Missouri sports fans, Underdog’s exit means one fewer operator will be available when the state officially launches legal sports wagering.
For now, Missouri bettors still have plenty of options:
- DraftKings
- FanDuel
- BetMGM
- BetRivers Sportsbook
- Fanatics Sportsbook
- Caesars Sportsbook
- bet365 Sportsbook
- Circa Sports
