Underdog Pulls Sportsbook From North Carolina

After leaving Missouri, days before the Show-Me state opened its sports betting industry, Underdog is now leaving North Carolina. That means Underdog has pulled from the only remaining state where it held a sports betting license.

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Key Highlights
+ Sportsbook Gone: Underdog informs North Carolina customers that it made a "business decision" to remove its sportsbook from the state.
+ Predict: The "business decision" is likely to focus on offering prediction market event contracts on its platform.
+ Deadline: Underdog will honor any sportsbook bet made before December 17.

Underdog No Longer Operating As A Sportsbook

This week, Underdog announced to customers in North Carolina will pull its sportsbook operations from the state. They told customers that sports betting will become unavailable by December 16.

Underdog had contacted the North Carolina gaming regulator around Thanksgiving that it was planning on pulling from the state due to "business decisions".

All bets placed before December 17 will be honored by the company. Any futures bet that hasn't resolved by December 17 will be paid out as a win with funds immediately added to the customer's account.

Underdog Jumping Into Prediction Markets

The "business decision" Underdog is likely referring to in North Carolina is its jump into prediction markets.

Back in September, Underdog announced it was partnering with Crypto.com to offer event contracts on its platform. That decision was at the heart of Underdog pulling out of Missouri before the state launched.

Prediction markets are legal in the US and operate at a federal level. Meaning operators like Underdog can bypass all state regulations and taxes. That could be a huge financial windfall for companies like Underdog that would be fighting for a sliver of the sports betting market.

Brands like DraftKings and FanDuel command nearly two-thirds of the US sports betting market. Every other brand duels for single percentage points of market share. Small market share equals small profits that are then cut by tax rates usually between 10-20%. In states like Missouri, revenue is further cut with a market access partner getting a cut.

With prediction markets, taxes and partner revenue sharing are gone.