Where Is Underdog Predict Legal? All 46 States
Underdog Predict Legal States 2026
Underdog Predict is Underdog’s real-money prediction market product, where users can trade event contracts on sports and other real-world outcomes through the same Underdog app already familiar to fantasy sports players.
Underdog itself has been around since 2020, when Jeremy Levine founded the company as a fantasy sports platform built specifically for U.S. sports fans. It has since grown into a broader sports gaming business spanning fantasy contests, sports betting, and media.
In 2026, Underdog went a step further by acquiring a federally regulated derivatives exchange and clearinghouse and launching their own prediction market platform through this infrastructure.
Unlike traditional sportsbooks, Underdog operates Predict through the federally regulated prediction market framework rather than relying on state-by-state sportsbook licenses. That gives Predict a much broader geographic footprint than licensed betting sites.
As of today, Underdog Predict is available in 46 states plus Washington, D.C. - including major states without statewide online sportsbooks, such as California and Texas.
Where Is Underdog Predict Available?
Underdog Predict is available across almost the entire U.S., covering 46 states and Washington, D.C.
The complete list is:
Alabama, Alaska, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and Washington, D.C.
You must be at least 18 and physically located in an eligible state when you trade.
Your home address does not determine access: if you travel into an unavailable state, Underdog can restrict new trades and cash outs until you return to an eligible location.
A California resident visiting Arizona, for example, would be in an unavailable jurisdiction while they are physically in Arizona.
Underdog Predict is currently unavailable in four states:
- Arizona
- Michigan
- Nevada
- New York
If you enter one of those states while holding an existing Prediction Pick, the position does not disappear. Open positions continue toward normal settlement, but you cannot place new Prediction Picks or cash out early until you return to an eligible state.
Availability can change, so these four states should be treated as Underdog's current restrictions rather than permanent exclusions.
Why Doesn't Underdog Predict Work in Every State?
Those four exclusions aren't random. Arizona, Michigan, Nevada and New York have all taken particularly hard lines on prediction markets or sports event contracts that state regulators consider unlicensed gambling.
The broader fight is over who gets to regulate these products. Prediction market operators argue that event contracts offered through federally regulated markets fall under the federal commodities framework. Several states argue that sports contracts offered to people inside their borders still fall under state gambling laws.
That disagreement has produced enforcement actions, lawsuits and court orders across the country, with these four states among the toughest environments for sports prediction markets.
For users, the practical answer is simpler than the legal fight: Underdog currently chooses not to offer Prediction Picks while you are physically located in Arizona, Michigan, Nevada or New York.
How Does Underdog Predict Work?
Underdog Predict uses event contracts rather than traditional sportsbook bets.
A Prediction Pick starts with an outcome. You purchase one or more contracts based on whether you think that outcome will happen, with each contract priced according to the market's current implied probability.
For example, if a contract costs $0.65, the market is roughly pricing that outcome at a 65% probability.
If you hold the position until settlement:
- A correct contract settles at $1.00.
- An incorrect contract settles at $0.00.
- Your profit on a winner is the difference between what you paid and $1, minus applicable fees.
You may also be able to cash out before the event settles. If the contract price has moved since you entered, your position may then be worth more or less than you originally paid.
Underdog Predict for a Sports Bettor
Underdog Predict doesn't look or feel like a traditional sportsbook at first. Instead of American odds like -110, you might see a contract trading at 55 cents. Buy at 55 cents, hold a winner to settlement, and that contract becomes $1. Get it wrong and it becomes zero.
The bigger difference is what's happening on the other side of the trade. With a sportsbook, you're betting against the house and the book builds its margin into the odds. Prediction markets match buyers and sellers instead.
Prices move as traders take positions, new information hits the market and demand shifts from one side to the other.
You can also trade out before settlement. If you buy a contract at 40 cents and the market later moves to 65, you may be able to sell the position at the higher market price instead of waiting for the event to finish.
Once you get past the different plumbing, the instinct is familiar: you're still deciding whether the market has priced an outcome correctly. The execution is different, but if you've spent years reading sportsbook lines, you're not starting from zero.
Learn More About Prediction Markets
What Markets Does Underdog Predict Offer?
While sports contracts are at the center of Underdog Predict, the platform also offers event contracts covering politics, economics, entertainment, crypto, weather and other real-world events.
Current market coverage includes:
- Sports: NFL, NBA, MLB, NHL, college sports, soccer, tennis and more.
- Politics: Elections, political outcomes and other government-related events.
- Economics & Business: Federal Reserve decisions, economic indicators, companies and broader business outcomes.
- Culture & Entertainment: Movies, music, TV and awards such as the Oscars and Grammys.
- Crypto: Outcomes tied to cryptocurrencies such as Bitcoin and other digital assets.
- Climate & Weather: Weather, hurricanes and other climate-related outcomes.
- Mentions: Markets based on whether a particular person or organization says a specified word or phrase.
The exact menu is fluid. Prediction market contracts appear and disappear as events become relevant, so you should expect the mix inside each category to change frequently.
Can I Win Real Money on Underdog Predict?
Yes. Underdog Predict uses real-money event contracts.
You pay real money to purchase Prediction Picks, and winning contracts normally settle at $1 each. Your profit depends on how much you paid for the position, how many contracts you bought and any applicable fees.
Suppose you purchase 10 contracts at $0.60 each. Ignoring fees, that costs $6.
If your prediction is correct, those 10 contracts settle for $10, producing a $4 profit. If the prediction is incorrect, the contracts settle at $0 and the $6 position is lost.
You do not necessarily have to wait for settlement. When cash out is available, you can close the position at its current market value. A contract that has risen since you bought it may therefore produce a profit before the underlying event is finished.
Why Is Underdog Predict Legal?
The important thing for bettors to understand is that Underdog Predict operates through the federally regulated prediction market framework, rather than through a traditional state sportsbook license.
Prediction Picks are event contracts traded through markets regulated by the Commodity Futures Trading Commission. That federal structure is why Underdog can offer Predict in states such as California and Texas even though neither state licenses statewide online sportsbooks.
Some state regulators dispute how far that federal framework extends when the contracts involve sports. They argue that certain sports event contracts still fall under state gambling laws, while prediction market companies maintain that federally regulated event contracts fall under federal commodities jurisdiction.
That dispute is still playing out. For consumers, the practical result is the availability map you see today.
Underdog Predict Legal States FAQ
Underdog Predict is currently available in 46 states plus Washington, D.C. The only unavailable states are Arizona, Michigan, Nevada and New York.
You must be at least 18 and physically located in an eligible jurisdiction when trading. Eligibility follows your current location rather than your state of residence.
Yes. Underdog Predict operates through federally regulated prediction market infrastructure.
That makes Predict a different product from Underdog Fantasy and from a traditional state-licensed sportsbook, even though all three can involve predicting sports outcomes.
Underdog Predict operates through the federally regulated prediction market framework and its event contracts are traded on CFTC-regulated markets.
That regulatory oversight does not remove trading risk. A losing contract can settle at $0, and early cash out is not guaranteed, so you can lose the money used to purchase a position.
Yes. Underdog Predict is available in California. Users who are at least 18 and physically located in California can trade Prediction Picks, including real-money sports and non-sports event contracts.
California does not currently have state-licensed online sportsbooks, but Underdog Predict operates under the federal prediction market framework rather than a California sportsbook license.
Yes. Underdog Predict is available in Texas. Users who are at least 18 and physically located in the state can access Prediction Picks.
Texas does not offer state-licensed online sportsbooks, but federally regulated prediction markets operate under a different regulatory framework.
No. Underdog Predict is currently unavailable in Arizona.
Users physically located in Arizona cannot place new Prediction Picks or cash out existing positions. Open positions remain active and can settle normally.
No. Underdog Predict is not currently available in New York.
You cannot place new Prediction Picks or cash out existing positions while physically located in the state. Open positions can remain active and settle normally.
No. Underdog Predict is currently unavailable in Michigan.
Michigan has taken an aggressive regulatory position toward sports event contracts offered without a state gaming license, and Prediction Picks are currently blocked while you are physically located there.
No. Underdog Predict is currently unavailable in Nevada.
Nevada has been one of the most aggressive states in enforcing its gaming laws against prediction markets. Users physically located in Nevada cannot place Underdog Prediction Picks or cash out existing positions.
