Daily fantasy sports (DFS) and pick'em platforms — from classic salary-cap DFS at DraftKings and FanDuel to prop-based pick'em at PrizePicks and Underdog. Legal in most states.
Daily fantasy sports (DFS) and sports betting are related but legally distinct products. Traditional DFS — salary-cap lineup building at DraftKings DFS and FanDuel Fantasy — is classified as a skill-based contest available in 40+ states. Sports betting (wagering on game outcomes at a licensed sportsbook) requires state-by-state regulatory approval and is currently legal in 38+ states. Understanding which product you're using matters for legality, tax treatment, and what you're actually competing for.
Classic DFS at DraftKings and FanDuel works on salary-cap lineups: you're allocated a budget, you draft a team of individual players under that cap, and your lineup scores points based on real statistical performance. You're competing against other users' lineups in a contest pool — cash games (top 40-50% of lineups win) and tournaments (top payouts concentrated at the top). DraftKings DFS is the larger platform by contest volume; FanDuel Fantasy has a strong cash game and single-entry tournament scene.
Both run contests across NFL, NBA, MLB, NHL, PGA, MMA, and other sports year-round.
PrizePicks and Underdog Fantasy represent the DFS-adjacent pick'em format: instead of building salary-cap lineups, you select individual player props (Over/Under on stats) and win based on prediction accuracy. This format is simpler than classic DFS and has grown substantially — PrizePicks now has more casual users than any classic DFS platform. DraftKings and FanDuel have both launched their own pick'em products to compete in this segment.
For bettors who want to combine DFS with traditional sportsbook access, DraftKings and FanDuel are the most integrated options — their DFS and sportsbook products share the same account, balance, and app, so you can switch between contest play and sports wagering (where legal) without a separate login. However, DFS contests are available even in states where their sportsbook product isn't.