Final Determination Yet to Be Made In Arizona’s Notice of Intent to Revoke Underdog’s DFS License

• An Arizona Department of Gaming spokesperson said no final determination has been made in decision to potentially revoke Underdog’s fantasy license
• Underdog still offers its daily fantasy sports product in the state
• The Arizona Department of Gaming notified Underdog on Dec. 5, 2025, of its intent to revoke the company’s fantasy sports contest license

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No final determination has been made on the Arizona Department of Gaming’s potential decision to revoke Underdog’s daily fantasy license.

An Arizona Department of Gaming spokesperson told Sports Betting Dime that no “final determination has been made” in the process. The Arizona Department of Gaming and Underdog are still embroiled in discussions regarding the department’s consideration of revoking the company’s daily fantasy license due to its relationship with Crypto.com.

“No final determination has been made and the licensee remains authorized to operate pending the administrative process,” the spokesperson said.

Timeline Extended Past Original 30 Day Appeal Deadline

Underdog is still authorized to operate in Arizona pending the administrative process, the department spokesperson said. Underdog continues to offer its “champions” and “drafts” daily fantasy sports contests in the state.

A request for comment from Underdog on the appeal process was not returned.

The Arizona Department of Gaming notified Underdog on Dec. 5, 2025, that it intended to revoke the gaming company’s fantasy sports contest operator license due to its partnership with Crypto.com and its prediction market offerings.

In an email obtained by Sports Betting Dime through a public records request, the Arizona Department of Gaming notified Underdog on Dec. 5 of its intention to revoke the company’s fantasy sports contest operator license. It classifies Crypto.com’s sports event contract offerings as “illegal gambling in Arizona.”

Underdog has held a fantasy sports contest operator license in the state since Aug. 23, 2021.

“ADG has determined that Underdog, by contracting with Crypto, benefitting from Crypto’s services, supporting Crypto’s interests, and providing financial support to Crypto is aiding and abetting Crypto’s illegal conduct in Arizona and providing it with a façade of legitimacy. Moreover, and in the same fashion, Underdog’s relationship with Crypto is an association that poses a threat to the public interest of this State. As a result, the Department hereby provides Underdog notice of its intent to revoke fantasy sports contest operator license FS200008,” a member of the Arizona Department of Gaming wrote in the Dec. 5 notice.

Underdog officially had 30 days to appeal the notice of intent, but an Arizona Department of Gaming spokesperson in January reported to Sports Betting Dime the requirement was waived.

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.

Focusing on Prediction Markets

Underdog has largely focused on its prediction market business in 2026. In March, Underdog announced the acquisition of Aristotle Exchange DCM, Inc., and Aristotle Exchange DCO, Inc., both Commodity Futures Trading Commission (CFTC) registered designated contract market (DCM) and derivatives clearing organizations (DCO).

The acquisition allowed Underdog to expand its prediction market offerings by using its own exchange. Underdog does not offer its prediction market services in Arizona.

The company has moved away from its sports betting offerings to focus on prediction markets. Underdog stopped offering North Carlina online sports betting on Dec. 16, 2025, to focus on prediction markets, launching its services in the Tar Heel State shortly thereafter.

This came several weeks after Underdog pulled its sports betting license from Missouri one week prior to the state’s sports betting launch on Monday, Dec. 1. Underdog Predictions launched in Missouri shortly after the company pulled its license.

The company currently offers its prediction markets in 34 states, and Washington, D.C., throughout the country.