The Arizona Department of Gaming (ADG) has moved to revoke Underdog’s fantasy sports licence, citing concerns over the operator’s prediction markets offerings.
First reported by Sports Betting Dime, in an email dated 5 December the ADG informed Underdog of its intent to take regulatory action.
The department has classified the sports event contract offerings of Crypto.com – which Underdog has partnered with since September – as “illegal gambling” under Arizona law.
Underdog, which has never offered its prediction markets in Arizona, has stated it will legally oppose the decision.
The operator has 30 days from 5 December to request a notice of appeal or a formal hearing with the department.
The regulator said in a statement: “ADG has determined that Underdog, by contracting with Crypto.com, 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 licence FS200008.”
If the change goes ahead, it will be the first instance of a company’s sports betting licence being removed because of its engagement with prediction markets.
State regulators have been warning operators of consequences for offering sports event contracts, but no action has been taken until now.
Underdog offers sports event contracts in more than 20 US states and will add North Carolina to that list after announcing the end of its traditional sports betting platform in the state last week.
The post Arizona to revoke Underdog’s DFS licence for “aiding and abetting” illegal conduct first appeared on EGR Intel.
ADG takes enforcement action against Underdog for “aiding and abetting” illegal conduct through prediction markets
The post Arizona to revoke Underdog’s DFS licence for “aiding and abetting” illegal conduct first appeared on EGR Intel.