Pick ‘Em Games Drew Ire of Regulators
Regulators targeted Underdog because it offered pick ‘em games. The old platform allowed players to play these games against the house instead of other players. That caught the eye of lawmakers and sportsbooks, who said it qualified the game as gambling instead of DFS.
Instead of pushing back, Underdog decided to change its controversial pick- 'em games. Now, players pick against each other instead of the house. While that change will hurt Underdog’s bottom line, the ability to maintain its massive footprint was worth it.
Change Only Affects Legal Betting States
The updated platform affects most of the US. However, Underdog continues to offer players the opportunity to bet on houses in states where sports betting remains illegal. That includes two massive markets in California and Texas.
Some of the non-betting markets have begun to discuss cracking down on sites like Underdog, but that could take time. With the updated platform already up and running in other states, the operator will be able to make the switch if and when more cease-and-desist letters come.
Class Action Lawsuit Targets Sweeps Sportsbooks
A massive class action lawsuit was recently filed in the Southern District Court of New York. The lawsuit targets sweepstakes sportsbooks and casinos, as well as Apple and Google. It accuses them of offering illegal forms of gambling, similar to Underdog.
While DFS sites aren’t part of the lawsuit, the industry will closely monitor it. If the lawsuit is successful, it could encourage similar action against DFS sites offering options to bet against the house or place parlay-style games.
