No Decision Yet on Arizona’s Notice of Intent to Revoke Underdog’s Fantasy License

• No decision has yet to be made on the Arizona Department of Gaming’s notice of intent to revoke Underdog’s fantasy license
• Underdog had 30 days to respond to the notice, but the department waived the time period
• Discussions are still ongoing between the regulatory department and Underdog

No final determination has been made on the Arizona Department of Gaming’s notice of intent to revoke Underdog’s fantasy sports contest operator license, but both sides are currently engaged in active discussions.

The Arizona Department of Gaming issued a notice of intent to revoke Underdog’s fantasy sports contest operator license on Dec. 5, 2025, due to its partnership with Crypto.com and its involvement with sports event contracts. Underdog officially had 30 days to appeal the notice of intent, but an Arizona Department of Gaming spokesperson reported to Sports Betting Dime that the requirement was waived.

“The Arizona Department of Gaming has waived Underdog’s requirement to appeal within 30 days from the issuance of the Notice of Intent, pending settlement discussions,” the spokesperson said.

Underdog Still Live in Arizona

Discussions between Underdog and the Arizona Department of Gaming are still ongoing and no final determination on the notice of intent has yet to be made. Underdog is still authorized to operate in Arizona pending the administrative process. Underdog continues to offer its “champions” and “drafts” daily fantasy sports contests in the state.

An Underdog spokesperson confirmed the Arizona Department of Gaming did indeed waive the 30-day time period and that discussions are still ongoing. Under the original timeframe, Underdog would have been required to appeal the department’s notice of intent to revoke their license by Sunday, Jan. 4, 2026, or accept the decision.

“We continue to operate our fantasy products in Arizona, and we look forward to continuing our collaborative discussions with the Department of Gaming,” Nicholas Green, general counsel for Underdog, told Sports Betting Dime.

Underdog Launched Predictions in September

The Arizona Department of Gaming notified Underdog on Dec. 5 of its intention to revoke the company’s fantasy sports contest operator license. It classified Crypto.com’s sports event contract offerings as “illegal gambling in Arizona.”

In May, the Arizona Department of Gaming issued cease-and-desist notices to Crypto.com, Kalshi, and Robinhood for their sports event contracts in the state, qualifying the contracts as illegal gambling and claiming the companies were skirting gaming regulatory requirements in Arizona.

Additionally, the department warned its licensed sports betting and fantasy sports operators in September to not partner with companies offering sports event contracts, or to offer the contracts themselves. In a letter sent to Underdog legal counsel on Sept. 15, the department warned the company to not offer, enable, or sell contracts in the state through a Designated Contract Market or Futures Commission Merchant.

Despite the cease-and-desist notice, Crypto.com continued to offers its sports event contracts in the state until Tuesday, Dec. 2, and its full prediction market offerings until Friday, Dec. 12.

Underdog launched its own prediction market offerings in early September after announcing a partnership with Crypto.com. The partnership enabled Underdog customers to trade and purchase sports event contracts across all major sports leagues, including the NFL and college football, the first of its kind between a CFTC-registered exchange and a gaming company.

Underdog never offered its prediction market services in Arizona.

The Arizona Department of Gaming, however, concluded Underdog continued to “enable the sale of event contracts in the United States in partnership with Crypto (and related entities)” in more than 20 states throughout the U.S. and Washington, D.C.