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OAKLAND PARK, Fla (Gambling911.com) - A popular product within Underdog Fantasy, Drafts, will be shuttering in seven states over the next few days....just in time for the new NFL season.
The basic concept behind Drafts is different from conventional DFS salary-cap contests. Players take turns selecting athletes in a snake draft, which is a selection format where the draft order reverses every round, going back and forth like a snake to keep the process fair. Once one contestant selects a player, that player isn't available to the others.
Underdog offers formats including best ball, where you draft a roster and the system automatically uses your highest-scoring players rather than requiring you to set a lineup every week.
And it seems the prediction market vs. state battles are to blame for the shutdowns.
Jeremy Levine, who founded Underdog Fantasy in 2020 after having previously launched StarStreet, confirmed the closures.
"Drafts community, I have some not fun news to share. Right after kickoff on Wednesday, we will be shutting down Drafts in seven states: MA, MD, MI, MS, NJ, PA and OH. Already entered drafts will continue as normal, but in those states you won’t be able to enter new drafts. If you’re a drafter in one of those states, I’m really sorry.
"This sucks, but I want to explain why.
"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 licenses in those states, or surrender the licenses and offer effectively our full experience, minus Drafts.
"It sucks. I love Drafts. It was the first game we ever launched and a big part of what built Underdog. Even though they don’t get anywhere near the usage of our other offerings, we still care deeply about them. And it pains me that we can’t do right by the Drafts community and offer the best experience possible to the most customers.
"We have some ideas about how to get Drafts back to more customers, but it’s too early to commit to anything yet. I’m optimistic, and we’re definitely going to try. But until then, I don’t think there’s really anything I can say other than I’m sorry."
As one might have anticipated, the Drafts and Underdog Fantasy community at large were far from thrilled.
Zachary tweeted:
"I’m not gonna deposit another dollar into this site. I can do any of this stuff you’re offering on FanDuel or DraftKings, and DraftKings I can still do best ball. I’m sure I’m one of many that will take whatever money comes back to me in 2026 out of your site. Just being honest."
Sterling offered:
"Maybe drop the stupid prediction market shit then instead of dropping fantasy sports?"
And SoKlose had this to say in Underdog Fantasy's defense:
"Everyone is complaining about underdog when they should be complaining about these ridiculous and unnecessary rules imposed by these states. Adults should be able to spend their money as they please."
Michigan, in particular, has been especially aggressive as to protecting its own licensed gambling sites. They've sent out cease and desist letters to nearly every sweepstakes casino and offshore gambling site they can find.
On September 1, 2026, Ingham County Circuit Judge Rosemarie Aquilina granted Michigan Attorney General Dana Nessel's request for a preliminary injunction. Kalshi must continue preventing anyone located in Michigan from accessing its sports-event contracts. The underlying case has not been finally decided, but Michigan demonstrated enough likelihood of success and irreparable harm to obtain longer-lasting interim relief.
The order is unusually broad. It prohibits Kalshi from offering, listing, matching, executing, clearing or settling products that qualify as Michigan internet sports betting.
- Gilbert Horowitz, Gambling911.com
