North Carolina Fines Underdog, bet365 For Responsible Gaming Violations

• The North Carolina State Lottery Commission levied two fines to Underdog and bet365 for sports betting responsible gaming violations
• The commission fined Underdog $175,000 and bet365 $75,000
• Underdog no longer operates sports betting in the Tar Heel State

The North Carolina State Lottery Commission this week levied two fines against licensed sports betting operators, one of which is no longer offering sports betting in the state.

The commission fined Underdog $175,000 for failure to verify age of customers during account creation and bet365 $75,000 after the operator incorrectly pushed out promotion notifications to users who had self-excluded from North Carolina sports betting.

Underdog no longer offers sports betting in the state, only prediction market contracts, but violated the responsible gaming measures before it gave up its license in December 2025.

Age Verification Failures

According to the North Carolina State Lottery Commission, Underdog incorrectly allowed 38 online sports betting accounts to be created for customers who were under the age of 21. Of these created underage accounts, eight of the accounts were able to place bets on Underdog’s online sports betting platform before the error was identified.

The regulators said Underdog self-reported the error to the commission and willingly participated in the investigation.

The $175,000 fine comes after Underdog has not offered online sports betting for the last nine months in the state. One of the original eight North Carolina licensed online sports betting operators during its March 2024 launch, Underdog ceased its sports betting services on Dec. 17, 2025. It continues to offer its daily fantasy sports services in North Carolina, however.

The company chose to focus on Underdog Predictions and its sports event contract services instead. Underdog also gave up its Missouri online sports betting license in November 2025, just one week prior to the Show-Me State’s sports betting launch on Dec. 1, 2025.

bet365 Pushes Out Notifications to Self-Excluded Customers

Regulators also doled out a $75,000 fine to bet365 for failure to prohibit promotions being sent to users who have self-excluded from the state’s sports betting program. A bet365 error allowed self-excluded customers to receive promos from the operator.

Each licensed sports betting operator is required to implement protections for customers who enroll in the state’s self-exclusionary program.

Like Underdog, bet365 self-reported the error and participated in the regulatory investigation. It implemented solutions, which included additional employee training and an update of internal procedures, to ensure to error did not occur again in the future.