Underdog Fantasy is set to halt new Drafts entries from seven U.S. states this week. Founder Jeremy Levine has announced that the company is facing regulatory challenges, which have led to a decision between maintaining state fantasy licenses or those regulated by the Commodity Futures Trading Commission.

On September 5, Levine shared an update on social media, stating that the change will take effect immediately following Wednesday’s kickoff in Massachusetts, Maryland, Michigan, Mississippi, New Jersey, Pennsylvania, and Ohio.

Underdog Fantasy said: “Right after kickoff on Wednesday, we will be shutting down Drafts in seven states: MA, MD, MI, MS, NJ, PA, and OH.” While contests that have already been entered will proceed as planned, customers in these states won’t be able to submit new Drafts entries post-deadline.

This shift represents a significant adjustment for Underdog as it retracts one of its initial fantasy offerings, particularly amid the varying regulations that govern daily fantasy sports across the nation.