North Carolina’s State Lottery Commission has fined Underdog $175,000 after 38 people under the legal gambling age opened online sportsbook accounts. Eight of those accounts placed bets before the failure was identified.
The case involved failures to verify the age and identity of customers at account creation. North Carolina requires sportsbook customers to be at least 21, and Underdog self-reported the breach, cooperated with the investigation and agreed to the payment as a settlement.
The Commission presented the enforcement update on Sept. 23 under an agenda item naming Underdog Sports Wagering, LLC. iGaming Times reported that the regulator had not published a written decision on the case when its article appeared.
The penalty concerns a sportsbook that is no longer operating in the state. Underdog announced in December 2025 that it would exit North Carolina’s sports-wagering market, having been among the eight operators licensed when the state launched online sports betting in March 2024.
The Commission told customers that the operator would stop accepting bets on Dec. 16, 2025, while open wagers were to be settled by Dec. 18 and unused account balances converted into funds customers could withdraw. The State Lottery Commission said it would continue working with Underdog on unresolved player issues after the sportsbook’s closure.
Underdog continues to offer daily fantasy sports and prediction-market contracts in North Carolina, rather than traditional sports betting.
