The North Carolina State Lottery Commission has fined two online gambling firms over consumer-protection violations.
At a Sept. 23 meeting, state regulators said Underdog Sports failed to verify the age and identity of dozens of underage accounts, allowing some to gamble. Underdog was fined $175,000 as part of a settlement.
The New York-based company has since left North Carolina, describing it as a “business decision.” It subsequently moved into prediction markets.
North Carolina also fined bet365, a U.K.-based gambling firm, $75,000 after the platform sent push notifications and other reported contacts to people who had self-excluded from gambling.
The fines were reported by Covers, a sports betting news website.
Why It Matters
The purpose of a legal gambling age goes without saying. Self-exclusion is one of the core protections meant to potentially prevent the worst outcomes associated with gambling addiction, including suicide.
Push notifications, a form of direct marketing, have been associated with gambling-related harm.
These or similar kinds of “responsible gaming” violations have happened many times in other states involving other state-licensed operators. The legal industry has argued it is better for consumers than platforms based in other countries. Public health advocates say that argument is not true.
Recently, former U.S. Surgeon General Jerome Adams described legal online sports betting as the “new opioid crisis.”
The percentage of U.S. online sports bettors who report chasing losses on a betting app is rising, according to the Siena Research Institute. An early 2026 survey found 60% chased losses, up from 52% a year earlier.
