A growing list
Maine is the latest state to declare war on daily fantasy sports (DFS) and pick’em games, with Underdog Fantasy forced to call a halt to its operations after the Maine Gambling Control Unit (MGCU) dished out a hefty fine.
fined Underdog $391,850 for offering illegal DFS games
Legal Sports Report cited MGCU Executive Director Milt Champion on Tuesday who confirmed the body had fined Underdog $391,850 for offering illegal DFS games.
In addition, the MGCU ordered Underdog to immediately halt all its pick’em contests in Maine, an order that the New York-based firm has since completed.
Referencing a 30-day window of appeal, LSR cited an Underdog spokesperson as stating the DFS company would engage with the MGCU in the “coming weeks.” Underdog is pinning its hopes on the agency making “a final decision that ultimately agrees with our interpretation of Maine law.”
No surprise
The MGCU filed a complaint back on July 11 probing the legality of Underdog’s DFS products. The latter took its time to reply. When it did respond on September 11, it was to state its pick ‘em products were “flexible fantasy contests” that allowed players to choose their own scoring parameters instead of “being locked into an operator’s grid of fantasy points.”
The response didn’t have the desired effect. By October 15, the probing agency found Underdog accepted a minimum of 482,771 wagers from 7,837 individuals in the state. Champion’s written decision stated: “Contests must involve more than one contestant and wagers cannot be made against the operator.” The $391,850 fine represents a $50 fine for each of the 7,837 pick ‘em participants.
The MGCU chief said the Underdog fine was “the first of its kind.” Champion, who was sent on leave earlier this year for racist and sexist Tweets, added that the disciplinary action “sets the tone going forward.”
Big hopes dashed
Underdog emerged full of enthusiasm for its new DFS brand after asset manager BlackRock led its $35m Series B funding in July 2022. Fast-forward to October 2023 and Maine simply represents the latest state in which Underdog is not welcome.
New York and Michigan have already banned pick ‘ems
Last month, the Florida regulator followed the action of its Wyoming counterpart in July and handed Underdog a cease-and-desist letter, along with Betr and PrizePicks. New York and Michigan have already banned pick ‘ems, while North Carolina’s sports betting rules – including a ban on pick ‘ems – came out last week.
Champion, meanwhile, has shared the LSR report on Underdog on his LinkedIn profile, prefaced with: “The good and the bad…” Unfortunately for Underdog, the good Champion was referring to Maine sports betting going live in November.
“We’re excited. We’re raring to go,” the exec stated.