Underdog sues Tennessee officials in federal court over sports event contracts
Underdog filed in the Middle District of Tennessee on 13 October against eleven defendants, including Jonathan Skrmetti.
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RegulatedOnline casino and sports wagering licensed by the Division of Gaming Enforcement through Atlantic City casino licensees and partners; online gaming since 2013.
New Jersey is the longest-running regulated US market for online casino. The Division of Gaming Enforcement (DGE) dates the start of online gaming in the state to November 26, 2013. Licensed Atlantic City casinos and their partners offer internet gaming. Casinos, racetracks and their partners offer sports wagering, both retail and online. The DGE, a law enforcement agency in the Office of the Attorney General, licenses and polices both.
The latest DGE figures show how much of the market is online. For August 2026, Internet Gaming Win for the casinos and their partners was $259.3 million, up 4.4% on August 2025. Year-to-date Internet Gaming Win reached $2.13 billion, up 13.2%. Sports Wagering Gross Revenue was $61.4 million, down 25.0% year on year. The DGE put the drop mainly down to a later start to the fall sports calendar and a lower win percentage. Total Gaming Revenue was $615.7 million for the month and $4.81 billion for the year to date.
The DGE handles day-to-day regulation of the Atlantic City casino industry. It also oversees the internet gaming permit holders it approves. Its Internet Gaming Information page lists approved sites and states that any site not on the list is not approved to offer internet gaming in New Jersey.
Business-to-business suppliers enter through the Casino Control Act's service industry framework:
The DGE's Service Industry Licensing Bureau handles vendor registrations and service industry licences, and the DGE publishes an Enterprise Active Vendors List.
What licence an affiliate needs depends on how it is paid. The DGE set this out in Director's Advisory Bulletin 2014-01, dated June 9, 2014.
The bulletin also sets these conditions:
Illegal-site promotion. Director's Advisory Bulletin 2015-01 of June 4, 2015 states that affiliates who promote illegal sites to players in New Jersey are violating state law. It cites N.J.S.A. 5:12-95.26 and N.J.S.A. 2C:37a(2). Possible consequences include enforcement action, revocation or monetary penalties. Promoting illegal sites to players in other states counts against an affiliate's suitability for licensure.
Media and sportsbook content. Director's Advisory Bulletin 2019-01 of November 26, 2019 asks outlets to:
It reminds DGE licensees and registrants that contracts with illegal sites will negatively affect their suitability.
March 27, 2025: the DGE issued cease-and-desist letters to Kalshi and Robinhood. In the Kalshi letter, it said listing sports event contracts for people in New Jersey is unauthorized sports wagering under the Sports Wagering Act. It also said the collegiate contracts breach the state constitution's ban on betting on New Jersey college events.
September 15, 2025: the DGE proposed new rule N.J.A.C. 13:69O-1.2A on responsible gaming, with comments due by November 14, 2025. The proposal would require:
The DGE's proposed-rules page lists it as a proposal. This review did not verify whether it has been adopted.
December 15, 2025: the DGE published a further set of rule proposals, covering areas including general provisions, exclusion of persons and persons doing business with casino licensees. Comments closed February 13, 2026.
September 16, 2026: the DGE released the August 2026 results, with year-to-date Internet Gaming Win up 13.2% on the prior year.
Underdog filed in the Middle District of Tennessee on 13 October against eleven defendants, including Jonathan Skrmetti.
The NYSGC listed rules on AI use for wagering and safeguards for at-risk mobile sports wagering patrons on its 9 October 2026 meeting agenda.
Ohio led 39 states and the District of Columbia in a joint brief, while the Seminole Tribe of Florida sued DraftKings in state court.
The two regulator associations filed an amicus brief on 2 October in New Jersey's Kalshi case; states won in the Sixth and Ninth Circuits.