Search "Underdog {state}" in 2026 and the honest answer has to cover three different products, because Underdog Fantasy is not the single thing it was in 2023. It is still a daily fantasy sports app first. It used to also be a sportsbook. Now it is also the parent of a federally licensed prediction-market exchange. Those three things have three different legal maps, and a review that answers "is it legit" with a single yes or no is skipping the part that actually matters.

Is Underdog Legit — What the Company Actually Is

Underdog was founded in 2020 in Brooklyn by Jeremy Levine, Brandon Stakenborg, and Trevor John. The core product is pick’em DFS: build a roster of player projections and go over or under, not a moneyline against a sportsbook. That distinction is not marketing — it is the reason DFS operators can be live in states where sports betting is not, and it is also the reason regulators in a few states have argued the line got blurry.

New York was the sharpest example. The State Gaming Commission ruled that Underdog’s 2020–2022 contests went beyond the scope of the temporary permit it inherited from Synkt Games, and in March 2025 Underdog agreed to pay $17.5 million and exit New York rather than fight the finding. That is a real regulatory action with a real number attached — not the kind of thing an illegitimate operator settles and keeps operating everywhere else through.

Two Pick’em products, two state lists. Classic Pick’em operates under the standard state DFS exemption in roughly 15 states. Pick’em Champions is a peer-to-peer game Underdog had to license separately, state by state, starting in New Jersey and Delaware in March 2025. A state can allow one and not the other.

The Sportsbook That Closed

For a stretch, Underdog also ran a licensed real-money sportsbook. That ended in December 2025: Underdog settled every open wager in North Carolina and shut the book down nationwide rather than keep chasing more state licenses. If an older article told you to sign up for "Underdog Sportsbook" in your state, that product does not exist anymore — do not go looking for a deposit flow that was retired.

Underdog Predict — the New Federal Piece

In July 2026, Underdog launched Predict: a prediction-market exchange built on its own Designated Contract Market, Derivatives Clearing Organization, and Futures Commission Merchant registrations from the CFTC — the full federal licensing stack, not a partnership with an outside exchange. That puts Underdog in the same regulatory lane as Kalshi and the US Polymarket rail: federally designated, but still subject to state challenges over whether sports-outcome contracts count as gambling. Predict is a separate product with its own availability, not a rebrand of Pick’em.

Is Underdog Safe to Deposit To?

Funding runs through debit/credit cards, bank transfer, PayPal, and Venmo; withdrawals land back on PayPal, Venmo, or Trustly, generally within one to three days. None of that is unusual for a mainstream US DFS app. "Safe" here means: real company, real settlement history you can look up, and payout methods that are traceable — not "guaranteed to win." Nothing on this site is financial advice, and DFS entries are not a way to make money.

Who Underdog Actually Fits

Players who want pick’em-style DFS contests and live in a state where Classic Pick’em or Pick’em Champions is actually offered — check which one, since they are not the same approval. Players hoping for the old Underdog Sportsbook should look elsewhere; it is gone. Players curious about Predict are looking at a different regulatory product entirely, closer to Kalshi than to PrizePicks. Blocked states as of 2026: Connecticut, Hawaii, Idaho, Iowa, Louisiana, Maine, Montana, Nevada, and Washington.