Underdog Withdraws Drafts from Seven US States and Launches Rips

Underdog has decided to withdraw its Drafts offering from Massachusetts, Maryland, Michigan, Mississippi, New Jersey, Pennsylvania, and Ohio starting at the beginning of the NFL season, a move aligned with its focus on prediction markets. According to CEO Jeremy Levine, the platform will no longer allow new registrations for Drafts in those states, although existing entries will continue to function normally.

Regulatory Restrictions Lead to the Withdrawal of Drafts

The decision comes after conflicts with state regulators regarding the legal framework. According to Levine, regulators indicated that Underdog had to choose between maintaining its Fantasy Sports licenses or continuing to offer contracts on events, a product authorized by the Commodity Futures Trading Commission (CFTC). Faced with that dilemma, the company chose to move forward with prediction markets and withdraw from Drafts in those seven states.

"It’s painful not to be able to offer Drafts to more customers and provide the best possible experience. But until we can resolve it, all I can say is that I’m sorry." —Jeremy Levine, CEO of Underdog

Drafts was the first game in Underdog's portfolio and, although it represents a smaller fraction compared to other products from the company, it was part of its identity in the fantasy markets in the United States. Levine did not rule out the possibility of bringing back Drafts in the future, but stated that any news is still in too early a stage to commit.

Betting on Prediction Markets and Technology Acquisition

Underdog's strategic shift towards predictive markets accelerated after its previous attempt to enter online sports betting in North Carolina and its projected expansion in Missouri. In early 2026, Underdog acquired Aristotle, a entity licensed by the CFTC as a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO). This operation consolidated its technological access to the ecosystem of prediction markets for sporting events.

Subsequently, the British giant IG Group announced an agreement to acquire Underdog for $1.3 billion, marking its entry into this business segment. Underdog's technological infrastructure, initially strengthened through collaboration with Crypto.com, now operates under regulated environments that allow the legal execution of prediction contracts across different jurisdictions.

Rips: Physical and Digital Sports Cards for the New Consumer

Away from prediction markets, Underdog introduced Rips, a product of mystery packs of cards targeted at the growing community of sports card collectors. Each digital pack of Rips contains an authentic physical card, and the user knows the probabilities of obtaining valuable cards upfront. Prices range from $5 to $1,000 depending on the pack.

When opening a pack, the player can choose between:

1. Requesting the physical card to be shipped to their home,
2. Keeping the card in digital format for up to three days,
3. Selling it immediately at the price offered by the platform.

Rips is available in all US states except Nevada. This mode is also not offered to customers located in Canada. The boom in sports and Pokémon cards has fueled the collectibles economy in the US, a phenomenon that has attracted the attention of analysis firms like Eilers & Krejcik Gaming. According to the analysis, the "breaking and ripping" of cards constitutes the central social product of these platforms.

Outlook for the US Fantasy and Prediction Model

The withdrawal of Drafts and the launch of offerings like Rips illustrate how operators with fantasy sports licenses in the US must adapt to increasingly specific regulatory criteria in each state. The pressure exerted by the coexistence of fantasy licenses and the offering of contracts for sporting events forces platforms to choose between maintaining their presence in traditional fantasy or moving towards prediction markets, which already have regulated spaces at the federal level by the CFTC.

The business moves of Underdog, as well as the imminent acquisition by IG Group, consolidate the convergence between fantasy sports models, predictive markets, and the collectibles economy in the US. For the B2B segment, these trends suggest opportunities in technological integration, regulatory compliance, and new products like mystery packs or betting markets cleared by recognized entities. Operators are required to closely monitor regulatory changes in each jurisdiction and adjust their portfolios according to consumer trends and the positions of state agencies.