Underdog Pulls Drafts in Seven States, Launches Rips Sports Card Packs

Underdog will halt its Drafts fantasy offering in seven US states as the NFL season begins, responding to state regulatory positions on dual licensing and event contracts. At the same time, Underdog is rolling out its Rips digital sports card product nationally (excluding Nevada), signalling a strong shift toward prediction markets and collectibles under CEO Jeremy Levine’s leadership.

Drafts Suspended in Response to State Regulator Requirements

Underdog Fantasy announced it will discontinue entry into Drafts, its original daily fantasy sports (DFS) game, in Massachusetts, Maryland, Michigan, Mississippi, New Jersey, Pennsylvania, and Ohio with the kickoff of the US NFL season on September 9, 2026. CEO Jeremy Levine confirmed on X that previously entered Drafts in these states will play out but no new entries will be allowed from Wednesday evening onward. The Seattle Seahawks face the New England Patriots at 1:20am BST, marking the effective cutoff.

Levine explained the step was necessary after regulators communicated that Underdog could either maintain its DFS licences or operate Commodity Futures Trading Commission (CFTC)-licensed event contracts—but not both—in each relevant jurisdiction.

“Those states have taken a legal viewpoint we disagree with: if we offer our CFTC-licensed products we cannot offer fantasy sports in those states. So, we had to choose. We could keep our fantasy licences in those states, or surrender the licences and offer effectively our full experience, minus Drafts. It sucks.” — Jeremy Levine, CEO, Underdog

He acknowledged the disappointment for Drafts players, noting that although Drafts no longer drives the majority of user activity, it was the company’s founding product. Levine added that Underdog is exploring ways to reintroduce Drafts to a wider audience, but no commitment or timeline has been set.

Focus Keyword: Underdog Rips Product Expands Collectible Offerings

The suspension of Drafts reflects Underdog’s broader move toward prediction markets, reinforced by its acquisition of CFTC-licensed Aristotle in March 2026. Aristotle operates as both a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), giving Underdog an in-house platform for its prediction product pipeline. The deal followed Underdog’s use of infrastructure support from Crypto.com and came before its $1.3bn acquisition by IG Group, the London-listed retail trading company making its own push into the prediction markets vertical.

Rips: Mystery Pack Collectibles Across the US Market (Except Nevada)

Beyond prediction contracts, Underdog recently launched Rips, a mystery sports card pack platform. Rips allows users to purchase digital packs priced at $5, $10, $25, or $1,000. Each pack guarantees one real, physical sports card with previewed odds—details visible before purchase—a feature popular among collectors and hobbyists. Once opened, users may instantly sell the card at a posted offer, request shipment of the physical card, or keep the digital version for up to three days before taking further action.

Rips is accessible in every US state except Nevada. Canadian residents are excluded from participation at launch. Underdog’s foray into trading card product aligns with ongoing trends in the US collectibles market, where both sports cards and Pokémon have seen surging demand.

Market Context: Growth in Trading Cards and Live Commerce

The US market for breaking, ripping, and trading cards has expanded rapidly. Whatnot, an e-commerce platform for live shopping—including mystery pack opening—closed a Series G round this year with a $20bn valuation less than seven years after its inception. Eilers & Krejcik Gaming, a known analyst in the gaming sector, highlighted sports cards as a primary catalyst for Whatnot’s business growth, identifying social pack breaking and ripping as core drivers.

Live product experience—like Underdog’s Rips—leverages this enthusiasm for digital pack openings with guaranteed tangible items, serving both collectors and speculators.

What’s Next for Underdog and Its Core Markets

Underdog has previously tried to expand into regulated sports betting, with its North Carolina launch and plans for Missouri, but has increasingly concentrated on prediction markets and alternative product types. The recent strategic acquisitions and the launch of Rips are signs of a company adjusting to evolving regulatory and product realities. While Levine voiced optimism about a future return for Drafts in the restricted states, the immediate focus is on scaling regulated prediction and collectible experiences compliant with state and federal law.

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