Arizona regulators’ move to revoke Underdog’s daily fantasy sports license in the state due to its prediction market relationship with Crypto.com could have far-reaching consequences across the industry.
Arizona officials earlier this month moved to strip Underdog of its daily fantasy sports license in the state, writing to the operator that its relationship with Crypto.com, which offers sports event contracts in other states, violated state law. Regulators said sports event contracts represent an illegal form of gambling, and even a partnership with a prediction market was a violation of the license agreement.
Crypto.com had been warned earlier this year to stop offering prediction markets in Arizona, which was the catalyst for the move, Chris Kotterman of the Arizona governor’s office told Covers in an interview last week.
