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As Missouri gears up for its sports betting market launch on December 1, 2025, Underdog has decided to withdraw its license application, leaving one less operator in the lineup of approved sportsbooks.
The Missouri Gaming Commission (MGC) confirmed that Underdog’s exit means the state will now have eight online sportsbooks ready for the launch instead of nine.
The decision to pull out not only halts Underdog’s plans to enter Missouri’s regulated market but also ends its previously announced partnership with the Kansas City Royals.
Shock last-minute decision
Underdog’s withdrawal from Missouri’s sports betting market comes as a surprising turn of events. Once a daily fantasy sports-focused operator, Underdog was quick to apply for its sports betting license when the state opened its application process.
The company had already established a presence in Missouri with its licensed DFS platform.
Following its license application, Underdog made significant moves in the state, securing partnerships with major sports teams. It first collaborated with the Kansas City Royals for a revenue-sharing license and later signed a multi-year marketing agreement with the NHL’s St. Louis Blues.
This partnership with the Royals allowed for a tethered, revenue-share betting operation. Now, however, with Underdog’s exit, that license is available for another operator. Meanwhile, the deal with the Blues equipped Underdog with access to the team’s intellectual property and video assets for marketing and fan engagement.
Despite investing in marketing efforts leading up to the market’s launch next week, Underdog’s last-minute decision shifts the market significantly just before the anticipated kickoff.
Prediction markets to take center stage?
Underdog’s sudden exit from Missouri’s sports betting scene may signal a strategic shift towards focusing on prediction markets, which are less regulated compared to traditional sports betting.
Mike Leara, Executive Director of the Missouri Gaming Commission, noted that Underdog “has decided to go to that market,” which presents fewer compliance burdens and no associated taxes at the state level.
Since September, Underdog has been expanding its prediction markets through a partnership with Crypto.com, targeting states where sports betting is not yet legalized. While Missouri wasn’t part of the initial rollout, it is now included among the states where Underdog offers event contracts.
This shift indicates a preference for the unregulated world of prediction markets over the obligations tied to sports betting, including revenue sharing with the Kansas City Royals and the state’s 10% tax.
As Underdog pivots, Missouri will still launch its online sports betting on December 1 with eight licensed operators: bet365, BetMGM, Caesars, Circa Sports, DraftKings, Fanatics, FanDuel, and theScore Bet.
In the meantime, Underdog continues to expand its presence in prediction markets across about two dozen states, while maintaining a daily fantasy sports operation in 41 states and active sports wagering in North Carolina.
Source: SBCAmerica
