Underdog Exchange DCM Inc. v. Brown

Overview

Underdog’s exchange arm, Underdog Exchange DCM, Inc., and UDM, LLC filed this pre-enforcement suit on September 8, 2026, seeking a declaration that the Commodity Exchange Act preempts the state’s gambling law as applied to its sports event contracts, and an injunction against enforcement. It is one of six such suits Underdog filed in a week — Massachusetts, Ohio, Wisconsin, New Mexico and Washington on September 8, and Connecticut on September 15 — after the company surrendered its daily-fantasy licenses in several states, and the fourth platform suit against Washington.

It moved twice in its first week. Judge Robert S. Lasnik recused on September 14 and the case went to Judge Thomas S. Zilly, who set a Rule 26(f) conference by October 30 and a joint status report for November 13. The next day the clerk determined it to be a Tacoma division case and reassigned it to Magistrate Judge David W. Christel. Underdog then noticed it as related to the three earlier platform suits against Washington — Robinhood’s, Crypto.com’s and Novig’s — which sit with Judge Coughenour. On October 29, 2026 the case was reassigned again, to Judge Benjamin H. Settle. Washington has moved to dismiss and Underdog has moved for a preliminary injunction; neither has been decided. (Caption, parties and assignments read from the docket; the description of the claims is press-sourced.)

Changes

October 2026

• FilingOctober 28, 2026

  Washington moved to dismiss Underdog’s preemption suit, and Underdog moved the next day for a preliminary injunction or, alternatively, a stay pending appeal. The case was reassigned to Judge Benjamin H. Settle; the motions are noted for November 25 and 27.

  W.D. Wash. No. 2:26-cv-03200, Dkt. 22 and 26 (docket text)

September 2026

• CorrectionSeptember 15, 2026

  Underdog’s Washington case is before Judge David W. Christel in Tacoma, not Judge Zilly: after Judge Lasnik recused, the clerk reassigned it on September 15 as a Tacoma division case.

  W.D. Wash. docket No. 2:26-cv-03200

• New caseSeptember 8, 2026

  Underdog Exchange DCM sued WA officials to bar enforcement against its sports event contracts — one of six Underdog preemption suits filed in a week.

  CourtListener — Underdog Exchange DCM Inc. v. Brown

Timeline

What's next: Both motions are before Judge Benjamin H. Settle, who took the case on October 29. Washington’s motion to dismiss is noted for November 25, 2026 and Underdog’s motion for a preliminary injunction or a stay pending appeal for November 27; Underdog asked for oral argument. The scheduling deadlines set by Judge Zilly were terminated on October 22. The motion papers are not yet in the free record, so the grounds of each, and what appeal the alternative request refers to, are not confirmed. An assistant attorney general appeared on October 28 for six Gambling Commission members, which suggests they are now defendants; the pleading that would show it is not on the free record. November 25, 2026: Washington’s motion to dismiss noted for consideration (Underdog’s injunction motion is noted for November 27)

Parties