Underdog Sports Folds on Missouri Sports Betting in Favor of Prediction Market
Posted on: December 2, 2025, 09:54h.
Last updated on: December 2, 2025, 10:10h.
- Underdog Sports has terminated its sports betting license in Missouri
- The betting group is focused on its prediction market partnership with Crypto.com
Underdog Sports was supposed to begin taking sports bets in Missouri on Monday, December 1, along with numerous other licensed sportsbooks. But just days before the Show-Me State’s launch of legal online and retail sports betting, Underdog abruptly withdrew from the emerging market.
Underdog decided to yank its sports betting license in Missouri in favor of its prediction market partnership with Crypto.com, an online financial exchange that facilitates derivative trading. Crypto.com, Kalshi, and Robinhood are leaders in the controversial sports prediction markets space, which allows the buying and selling of shares related to the outcomes of sporting events and players’ performances.
Gaming regulators in Nevada have warned sportsbooks and gaming licensees that they cannot engage with sports prediction markets because they do not hold state-issued gaming licenses to conduct sports pools.
The unresolved legal drama regarding whether the federal Commodity Futures Trading Commission (CFTC) or state gaming regulators have authority over sports event contracts continues to play out in courts. Last week, a federal judge in Nevada said the Nevada Gaming Control Board (NGCB) has regulatory power over sports event contracts in the state.
Missouri Sits on Sidelines
State gaming regulators and attorneys general across the nation have issued opinions against sports prediction markets. Missouri isn’t among them, though Mike Leara, the executive director of the Missouri Gaming Commission, cautions consumers from engaging in sports prediction markets.
It’s not regulated at any level compared to what traditional sports betting is,” Leara told FOX2 ahead of the state’s legal sports betting launch.
Leara said Underdog Sports went the prediction market route because “there’s no tax on it.” The state’s regulated sportsbooks share 10% of their gross proceeds with the state.
Crypto.com is regulated by the CFTC as a Designated Contract Market and Derivatives Clearing Organization. Crypto.com and its competitors argue that the federal regulation is exclusive of state governance.
Underdog Sports is running sports prediction markets in 23 states and Washington, DC, with one being Missouri. The platform’s operations include the two largest states where sports betting remains prohibited — California and Texas.
Missouri Sports Betting Debut
Sports betting went live in Missouri at 12:01 am local time on December 1. DraftKings and Circa Sports hold the state’s two untethered licenses, a benefit that allows them not to share a portion of their online sports betting proceeds with a physical casino partner.
The other mobile sportsbooks that are operational include FanDuel, Fanatics, Caesars Sportsbook, BetMGM, bet365, and theScore Bet. The latter is the newly deployed sportsbook brand from Penn Entertainment after it wound down ESPN Bet.
Missouri is the 19th most populous state, with approximately 6.2 million people. The state is home to seven professional sports teams, including the NFL’s Kansas City Chiefs, MLB’s Kansas City Royals and St. Louis Cardinals, and the NHL’s St. Louis Blues.
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