North Carolina’s State Lottery Commission has imposed a $175,000 penalty on Underdog Sports Wagering after the operator failed to verify the age and identity of 38 sports-betting accounts held by people under 21.
Eight of those accounts placed bets before the problem was identified. The Commission presented the enforcement action on Sept. 23, and Underdog settled after self-reporting the lapse and cooperating with the regulatory investigation.
The violations took place while Underdog was still operating a traditional online sportsbook in North Carolina. State rules define an underage person as someone younger than 21 and classify such people as ineligible to wager; they also define age and identity verification as a method, system or device used by an operator to verify a player’s age and identity.
Underdog was among the eight operators that entered North Carolina’s online sports-betting market when it opened in March 2024. It was also the only jurisdiction in which the company ran a traditional sportsbook, according to Covers.
The company gave up its North Carolina sports-betting licence in December 2025 as a business decision. It stopped accepting bets after Dec. 16 and ceased its sportsbook services on Dec. 17, while continuing to offer daily fantasy sports in the state. Underdog now offers prediction-market contracts in North Carolina.
The Commission also took action against bet365 on the same day, as we reported. North Carolina law assigns the Lottery Commission responsibility for regulating sanctioned gaming enterprises alongside oversight of the state lottery, with responsible gaming among its stated purposes.
