Published on: December 2, 2025, at 09:54 AM.
Updated on: December 2, 2025, at 10:10 AM.
- Underdog Sports has officially canceled its sports betting license in Missouri.
- The betting organization is now concentrating on its prediction market collaboration with Crypto.com.
Underdog Sports was set to commence sports betting operations in Missouri on December 1, coinciding with multiple other licensed sportsbooks. However, just days before the Show-Me State’s debut of legal online and retail sports betting, Underdog unexpectedly opted out of the growing market.
The decision by Underdog to withdraw its sports betting license in Missouri was made to prioritize its prediction market collaboration with Crypto.com, a digital financial exchange specializing in derivatives. Crypto.com, alongside Kalshi and Robinhood, are frontrunners in the contentious sports prediction markets sector, which facilitates the trading of shares based on sporting events and individual player performances.
Gaming authorities in Nevada have issued warnings to sportsbooks and gaming operators prohibiting their participation in sports prediction markets, citing lack of state-issued gaming licenses to operate sports pools.
The ongoing legal dispute regarding the jurisdiction between the federal Commodity Futures Trading Commission (CFTC) and state gaming regulators over sports event contracts remains unresolved. Recently, a federal judge in Nevada confirmed that the Nevada Gaming Control Board (NGCB) possesses regulatory authority over such contracts in the state.
Missouri’s Position on Sports Betting
State gaming regulators and attorneys general across the country have generally expressed disapproval of sports prediction markets. While Missouri has not yet taken a definitive stance, Mike Leara, the executive director of the Missouri Gaming Commission, has advised consumers to exercise caution regarding these markets.
“There is no regulation regarding sports prediction markets at any level, unlike traditional sports betting,” Leara remarked during an interview with FOX2 just before the lawful sports betting launch in the state.
Leara speculated that Underdog Sports opted for the prediction market model partly because “it incurs no tax.” In contrast, regulated sportsbooks are obligated to remit 10% of their gross earnings to the state.
Crypto.com is regulated by the CFTC as a Designated Contract Market and Derivatives Clearing Organization. The company, along with its rivals, argues that federal regulations supersede state laws.
Currently, Underdog Sports is managing sports prediction markets in 23 states, including Missouri, and also operates in two of the largest states—California and Texas—where sports betting is not yet legalized.
Debut of Sports Betting in Missouri
Sports betting officially launched in Missouri at 12:01 AM local time on December 1. DraftKings and Circa Sports hold two licenses that allow them to operate without a tethering requirement to a physical casino, enabling them to retain their entire online betting profits.
Other mobile sportsbook platforms currently active in the state include FanDuel, Fanatics, Caesars Sportsbook, BetMGM, bet365, and theScore Bet, which is the recently introduced brand from Penn Entertainment following the closure of ESPN Bet.
Missouri ranks as the 19th most populous state in the U.S., with an estimated population of 6.2 million. The state features seven professional sports teams, including the NFL’s Kansas City Chiefs, MLB’s Kansas City Royals and St. Louis Cardinals, along with the NHL’s St. Louis Blues.