Underdog Exits Draft Games in 7 States: What It Means and Where to Draft Now
TL;DR: Underdog is shutting down draft games in 7 states (MA, MD, MI, MS, NJ, PA, OH) on September 10 due to regulatory conflicts with its new CFTC-licensed prediction markets. Users can continue entering drafts until September 10. If you're already in a draft, you can finish it and it will still pay out at the end of the season.
Fantasy sports players in seven states just got some disappointing news. Underdog, one of the most popular daily fantasy sports platforms, announced it's shutting down its Drafts product effective immediately in Massachusetts, Maryland, Michigan, Mississippi, New Jersey, Pennsylvania, and Ohio.
Affected States: MA, MD, MI, MS, NJ, PA, OH
Why Is This Happening?
Underdogs founder Jeremy Levine took to X (formerly Twitter) to explain the decision, stating that these seven states have adopted a legal stance that creates an impossible choice for the platform.
"Those states have taken a legal viewpoint we disagree with. If we offer our CFTC-licensed products we cannot offer fantasy sports in those states. So we had to choose. We could keep our fantasy licenses in those states, or surrender the licenses and offer effectively our full experience, minus Drafts."
The core issue: Underdog recently expanded into regulated prediction markets under CFTC licensing. However, several states view offering both prediction markets and fantasy sports contests as incompatible under their regulatory frameworks. Rather than abandon its growth into prediction markets—a move backed by its $1.3 billion acquisition by IG Group Holdings—Underdog chose to surrender its fantasy sports licenses in these seven states.
What This Means for Players
The impact is significant but not total. New drafts cannot be entered by players in the affected states. However, any drafts already in progress will continue to completion. Underdogs' Pick'em games and other products remain available in most affected states.
For dedicated draft enthusiasts in these states, this is a gut punch—but it's not the end of the road. There are solid alternatives ready to fill the void. Thousands of players are making the switch to platforms that are fully licensed and operating legally in your state.
What About Other Platforms?
Alternatives include Drafters, DraftKings, and plenty of other up and coming sites.
The Broader Picture
Underdogs' exit from these states is a perfect storm of regulatory uncertainty and rapid industry evolution. As prediction markets become a bigger focus for major operators (thanks to billions in new investment), DFS—the original daily fantasy game—is being deprioritized by some major platforms.
For players, this is a reminder: diversifying where you play isn't just smart—it's essential. Platforms like Drafters are purpose-built to focus on what matters most: the game itself.
If you're in an affected state, check your existing Underdog drafts—they'll continue to payout.
The Bottom Line
Underdogs' decision to exit draft contests in Massachusetts, Maryland, Michigan, Mississippi, New Jersey, Pennsylvania, and Ohio opens the door for better alternatives. This comes with the news that Underdog can not continue to operate fantasy platforms and prediction markets simultaneously in these states.
Users in these states have until 9/10 to enter drafts and can finish any drafts started before then. Any completed drafts will still be paid out.