Americans have more ways to bet on sports than ever. Depending on where you live, you might use a state licensed sportsbook app, an offshore betting site, a daily fantasy contest, a prediction market or a sweepstakes site, and horse racing has its own separate system. Each option works differently, from who you are betting against to how you get paid.
This page explains each of the main sports betting options available in the US, how they compare, and links to our guides for specific states and cities.
Sports Betting Options at a Glance
| Option | Who You Bet Against | How Payouts Work | Where It Is Available |
|---|---|---|---|
| Licensed sportsbooks | The sportsbook | Fixed odds | States with legal betting |
| Offshore sportsbooks | The sportsbook | Fixed odds | Most states |
| Daily fantasy sports | Other players or the operator | Set prize or payout table | Most states |
| Prediction markets | Other users on an exchange | Contracts pay a fixed amount | Most states |
| Sweepstakes sites | The operator | Redeemable sweeps coins | States without bans |
| Horse racing | Other bettors (pool) | Pari-mutuel pools | Most states |
What is available to you depends on your state. Since a 2018 Supreme Court decision, each state decides whether to license sportsbooks, and as of 2026 39 states plus Washington, DC have done so. Large states like California, Texas and Georgia have not, which is why many people there use the other options below.
Licensed Sportsbooks
A licensed sportsbook is a betting site, app or casino counter approved by a state regulator. You bet against the sportsbook at fixed odds, and your payout is locked in when you place the bet.
- Bet types: Moneylines, point spreads, totals, player and game props, parlays, live in-game bets and futures.
- Online apps: About 30 states allow online betting through apps such as DraftKings, FanDuel, BetMGM, Caesars, Fanatics and bet365. You can usually sign up from anywhere, but the app checks your location and only accepts bets while you are inside a legal state.
- In person: Retail sportsbooks are found at commercial casinos, tribal casinos and some pro sports venues. In a few states, such as Washington and Wisconsin, tribal casinos are the only place to bet.
- Things to know: Most states require you to be 21. Deposits, withdrawals and disputes are covered by state rules, and the apps include responsible gambling tools like deposit limits.
Offshore Sportsbooks
Offshore sportsbooks are online betting sites licensed in other countries that accept customers from the United States. They have operated for decades and offer the same kinds of bets as licensed sportsbooks, often with a wider range of markets and lines posted earlier in the week.
- Who uses them: Mostly bettors in states without a licensed option, though some people in legal states use them too.
- Deposits and withdrawals: Many rely on cryptocurrency, along with cards and other methods. Withdrawals can take longer than with a licensed app.
- Things to know: They are not licensed by any US state, so state consumer protections do not apply and there is no state regulator to go to if there is a problem with an account or a payout.
Daily Fantasy Sports
Daily fantasy sports (DFS) contests let you build a lineup of real players for a single day or week, and you win based on how those players perform. DFS is available in most states, including many without licensed sportsbooks, because it has long been treated as a game of skill.
- Salary cap contests: You pick a lineup under a salary cap and compete against other entrants for a prize pool. DraftKings and FanDuel are the best known.
- Pick’em contests: You choose whether players will go over or under a stat projection and combine several picks into one entry, similar to a player prop parlay. PrizePicks and Underdog are popular examples.
- Things to know: The minimum age is 18 in most states and up to 21 in some. Pick’em contests have been restricted in several states because they look a lot like prop betting, and in July 2025 California’s Attorney General issued an opinion that daily fantasy contests are illegal there, which the major operators have disputed.
Prediction Markets
Prediction markets let you buy and sell contracts on the outcome of an event, including sports games. A contract pays a fixed amount if the outcome happens, and its price moves with the market’s view of the chances. You trade against other users on an exchange rather than against a sportsbook, and you can often sell your position before the game ends.
- Examples: Kalshi is the best known sports prediction market, and several brokerage and crypto apps have added sports contracts.
- Where available: They are regulated by the Commodity Futures Trading Commission (CFTC) as financial markets rather than by state gaming regulators, so they are open to users 18 and older in most states, including California and Texas.
- Things to know: Many states argue these contracts are sports betting that needs a state license, and more than 20 lawsuits are working through the courts. Availability in some states could change as those cases are decided.
Sweepstakes and Social Sites
Sweepstakes sites use two virtual currencies. One is for play only and has no cash value, while the other is given away free or as a bonus with coin purchases and can be redeemed for cash prizes. Operators say this makes them promotional sweepstakes rather than gambling, so they do not hold gaming licenses. Most are casino style, though some offer sports picks.
- Things to know: A growing number of states have banned them. As of mid-2026 the list included California, New York, New Jersey, Connecticut, Montana, Indiana, Maine and Washington, and other states were considering bans.
Horse Racing Betting
Horse racing has its own long-established system. Bets go into pari-mutuel pools, so the payout depends on how much money is bet on each horse rather than on fixed odds set by a bookmaker.
- At the track: Live racing and simulcast betting on races from across the country.
- Off-track betting: Licensed betting locations away from the track.
- Online: Advance deposit wagering (ADW) sites licensed by state racing commissions let you bet on races from home in most states, including some where sports betting is not legal.
See our horse racing betting guide for more on how race betting works.
New To Betting?
Whichever option you choose, it helps to understand how odds work and what you can win. Our guide to understanding betting odds covers American odds, and our betting guides explain common bet types like parlays and futures. Only bet what you can afford to lose.
Betting Options by State and City
Our state and city guides explain which of these options are available in each area, along with local casinos, racetracks and teams.
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