Are Underdog prediction markets legal in the US?
Underdog offers legal prediction markets in 31 US states, with some of the biggest including California, Texas, and Florida. This is assuming you are at least 18 years old or the minimum age required by your state, whichever is higher. On the other hand, the prediction markets are not available in states such as New York, Pennsylvania, or Illinois, at least not at the time of writing, but this could change in the future, so it’s always a good idea to check the terms.
Where Underdog Predict operates legally in the US, it is licensed and regulated under the Commodity Futures Trading Commission (CFTC). If you’ve read any of our previous reviews on prediction markets, such as the Crypto.com review, you’ll know that this license is essential. The CFTC provides regulations designed to keep you safe while enjoying the fun of prediction apps like Underdog.
Download the Underdog app to browse prediction markets
You can access Underdog Predict through the official website or mobile app. Personally, I prefer to trade predictions on my mobile, so the native app seemed like an obvious choice. I downloaded it on iOS through the App Store, but it’s also available to Android users in the Google Play Store. The app installs quickly, as it’s relatively lightweight compared to other prediction market apps.
When opening the app, everything felt modern and custom-built for mobile traders with appropriately sized touch targets and simple navigation. Even the visual look and feel was appealing and matched the Underdog branding across all key pages. Plus, the prediction markets themselves have a range of different filters, making it easy to find what I was looking for.
What are previous traders saying about the app?
You don’t need to look far to see positive Underdog Predict reviews and feedback for the mobile app. Both of the app stores are filled with reviews and consistently high star ratings. Here’s what I found at the time of writing:
- iOS Ratings: 4.8 stars with over 295,000 reviews
- Android Ratings: 4.6 stars with over 29,000 reviews
A few themes and topics consistently popped up throughout the user feedback, including the huge variety of prediction markets that you can explore. One trader in the iOS App Store praised the secure payment methods available, while another in the Google Play Store praised the efficiency of support services.
Disclaimer: Trading derivatives involves risk and may not be appropriate for all. For more information visit: https://www.nadex.com/rules and https://underdogfantasy.com/rules. For Crypto.com Predictions, the term "pick" refers to a product traded on CDNA.
How safe is the Underdog Predict?
The positive app store ratings I mentioned previously for the Underdog Predict app should be the first vote of confidence that this is a trustworthy brand. But SSL encryption is applied across the platform, ensuring any personal or financial data you share with Underdog is handled securely. You can also enable various account security features, including strong passwords and two-factor authentication.
Furthermore, Underdog is committed to encouraging responsible trading, with links to various non-profit organizations for help and support. You can also enable various consumer protection tools from your account, including deposit limits, session limits, time-outs, self-exclusions, and more.
How does event trading actually work at Underdog?
Prediction market trading is actually simpler than you might think, something I covered during a recent Polymarket review. Essentially, you’ll be predicting whether a real-world event will take place or not. For example, a typical prediction market might look like:
- Will JD Vance win the 2028 Presidential Campaign?
- Will Arsenal win the 2025 UEFA Champions League?
- Will Leonardo DiCaprio win the 2026 Oscar for best actor?
To place your prediction, you’ll need to purchase “Yes” or “No” event contract shares, which are priced between $0.01 and $0.99. Just like stocks in traditional markets, these prices of event contracts are driven by supply and demand. If the market believes an outcome is likely, the price will be higher, meaning lower potential returns. On the other hand, if the outcome is seen as unlikely, the price drops, but the potential returns increase.
What happens when the event concludes?
If you hold correctly predicted event contracts when the event concludes, you’ll receive a $1 payout for each share. However, if you hold the incorrectly predicted shares, you’ll receive a $0 payout, meaning you’re at an effective loss. During this Underdog Predict review, I noticed that most markets settled within a few hours of the event’s end, and payouts were processed within 24 hours.
The only exception to this is if an event is canceled, postponed, or not completed within 48 hours of its scheduled start time. In this situation, you will receive a refund on your event contracts that reflects what the market thought the outcome was worth in the period leading up to the cancellation.
Buying and selling event contracts before they conclude
If there’s one thing I took from this Underdog Predict review, it’s that market sentiment can shift rapidly, especially as new information comes to light. As the sentiment changes, so too can the price of your event contract shares. If your outcome looks more likely than when you entered, the price will typically increase, meaning you can sell your position for an early profit. On the flip side, if the outcome looks less likely, the price will typically decrease, but you can still sell your position at this point to minimize losses.
When can you not sell your position?
Unfortunately, you cannot always close your position, as the feature may be unavailable or suspended. Here are a few of the situations that can cause this:
- Low liquidity: There may not be enough trading activity on the opposite side to close your position.
- Suspended market: Underdog may temporarily suspend trading on the market; this is common in live markets.
- Event nearing completion: As a market gets closer to ending, it becomes harder to close your position.
- Geolocation: You must be physically located in a legal state to close positions.
What is the cost of trading event contracts at Underdog?
From my experience using this prediction trading platform, there’s a $0.02 fee per event contract. For example, selling 100 shares of a position would cost $2 in fees. While that may seem small, it can add up over time, so it’s worth considering Underdog Predict’s trading fees when closing positions.
Sports account for the biggest portion of prediction markets
Given that Underdog is so heavily involved in the sports industry, it didn’t come as a surprise for me to see that sports were favored heavily here. You can find a huge number of sports, including:
- Soccer
- Basketball
- Tennis
- Baseball
- Ice Hockey
- American Football
This is just scratching the surface of the list of available sports featured at this prediction market. There’s also coverage across the major sports leagues and tournaments, similar to what I found in a recent FanDuel Predict review. So you should expect to see the big leagues like the NFL, NBA, NHL, and MLB, but there’s also college sports and various tournaments available.
Live prediction markets for sports
I probably got the most enjoyment out of live prediction markets during this Underdog review, and they’re a huge part of the sports experience. Since many sports last an hour or longer, you’ll get the opportunity to trade predictions as the action happens in real time. If you’ve noticed a shift in the momentum or a key player gets subbed with an injury, this could make a certain prediction look more appealing.
Multi-team picks are available for sports only
Underdog Predict offers a multi-team picks feature, allowing you to combine up to four team picks into a single prediction. However, to do this, several rules must be followed carefully. This includes:
- Multi-team picks are for pre-game markets only.
- You can only combine game winners, spreads, and totals.
- The feature is not available for futures.
- Same sport and across sports are allowed as long as they’re not in the same game.
This is a fun feature to use, but it’s worth noting that it also increases your risk, since you’ll need every selection to be correct in order to win. Additionally, I tested this market through the iOS app, and after reading some information in the support hub, it appears it’s only available to iOS right now. This is something to keep in mind if you’re trading from Android.
Economy, entertainment, politics, & more alternatives
Despite sports being responsible for the biggest number of markets at Underdog, it’s not the only topic you can predict. Similar to my Prize Picks review, you can also find markets for the economy, entertainment, politics, and more.
I really enjoyed the entertainment markets, which focus on major award shows like the Grammys and Oscars. They're perfect if you like predicting the year’s top actors and musicians. That said, I can also see the appeal of economic markets if you enjoy following business news, as you’ll get to predict Fed decisions, interest rates, and more. Even politics can be interesting if that’s more your style, especially as Senate and Presidential elections approach.
Making your first deposit at Underdog Predict
Another positive thing I found during this Underdog Predict view was a diverse collection of payment methods. This includes providers such as Visa, Mastercard, Trustly, PayPal, Apple Pay, and Venmo. Each of these providers processed my deposits instantly and without transaction fees. It was always a smooth process from start to finish, which is something this prediction market definitely deserves credit for.
The minimum deposit is just $10 at Underdog Predict, and you can get started with this simple step-by-step process:
- Visit Underdog using any of the links on this page.
- Download the app or use the website to open the registration form.
- Create your first account or log in to an existing account.
- Select the + in the top right side of your screen or navigate to the Account tab.
- Click on the Deposit button and choose your payment method.
- Input the amount you want to deposit and confirm the transaction.
Is there a welcome bonus for new traders?
Unfortunately, I wasn’t able to find a dedicated welcome bonus for new traders during my time using Underdog. That was a bit disappointing at first, but there are plenty of other positives that more than make up for it. Plus, a welcome bonus could still be on the horizon, as the prediction side of the platform is relatively new. If a promotion does get added in the future, you’ll be able to find it showcased in the promotional banners on this page.
How to contact the support team when you need help
Like any of the top prediction market sites, you can contact the support team through a live chat on the official website or mobile app. This chat starts with an AI agent that gathers information about your account and enquiry. It will also provide some automated responses, but you can quickly request to speak to a real human. I found the human responses were consistently of a high standard, as agents could provide solutions to a wide range of topics, including account management, payments, trading, and more.
As an alternative to live chat, you can also contact the same support team via email or social media. Response times typically range between 12 and 24 hours, so I’d recommend sticking with live chat. Still, you can expect a high-quality response, as the same agents handle enquiries across all channels.
The hidden benefits of exploring the help center first
Contacting the Underdog Predict team is a great way to get personalized support, but it’s not always necessary. In fact, the help center can often be the fastest and most efficient support option, as it provides instant solutions without waiting for a response. It includes a wide range of guides covering everything from the basics of prediction markets and making payments to handling tax-related questions.
What payment methods are available for withdrawals?
Popular withdrawal methods on Underdog Predict include PayPal, Venmo, Trustly, Visa, and Mastercard. Importantly, to request your first withdrawal, you’ll need a fully verified account, and a minimum withdrawal amount of $10 applies. If you’ve decided on a withdrawal method and met these requirements, you can make the request by following these steps:
- Head to the Account tab when logged in to your account.
- Scroll to the Balance Management section and select Withdraw.
- Enter your desired withdrawal amount.
- Select a preferred payment method and enter your information.
- Request your withdrawal and check for a confirmation email.
- Click the link in the email to confirm the withdrawal request.
How fast are Underdog prediction market withdrawals?
Withdrawals are typically processed within 48–72 hours of the request. For the fastest and smoothest withdrawals, it’s recommended to use PayPal or Trustly as your payment method.
Why can’t I see Visa or Mastercard as a withdrawal option?
To withdraw using Visa or Mastercard, you must have previously deposited with either of these methods. Moreover, only debit cards are accepted, and credit cards, prepaid cards, and Cash App cards are not supported.
Three helpful tips every new Underdog prediction market trader should know
In my opinion, there are three helpful tips and tricks that every smart prediction trader should follow. Let’s take a closer look:
📊 Predict markets you understand & follow closely
If you stick to predicting markets you already have a genuine interest in, you’ve got a head start when it comes to making informed predictions. You’ll already have a basic understanding of the event and have a sense of how likely different outcomes are, making it easier to identify value. You’ll also be more inclined to follow updates through news outlets and social media, helping you spot shifts in market sentiment as they happen.
🔔 Enable push notifications to track events
Push notifications in the Underdog app are a useful way to keep track of your positions. This is especially helpful when market sentiment shifts quickly and prices start to move, allowing you to react in real time. You can then jump into the app and respond on the fly, whether that means opening new positions or closing existing ones.
🗺️ Have a clear exit strategy before entering
Before placing a trade, think about when you would be happy to exit, for both profit and loss scenarios. Having a plan in place helps remove emotion from decision-making and makes it easier to stick to a disciplined trading approach when markets start moving quickly.
Is the Underdog prediction platform worth visiting?
If you’re looking for an exciting new prediction trading platform, I honestly believe Underdog should be at the top of your list. It covers a huge range of topics, including sports, economics, politics, culture, and more, with thousands of new events added every day. These markets are also easy to navigate, whether through the official website or mobile app. Plus, a secure list of payment methods makes it easy to both deposit and withdraw from your account. Even the support services are highly rated, with live chat, email, and a detailed help center at your disposal.
Think you’re ready to try out this prediction market for yourself? Then follow any of my links on this page to kickstart the registration process.
Underdog Predict FAQs
What payment methods are accepted at Underdog Predict?
At Underdog Predict, the accepted payment methods include Visa, Mastercard, Apple Pay, PayPal, Trustly, and Venmo.
How old to trade predictions at Underdog?
You must be at least 18 years old, or the minimum age required by your state.
Do I need to pay taxes on Underdog prediction market winnings?
Yes, your activity is subject to federal financial reporting requirements, and you’ll receive a 1099-B form from Underdog. Whether or not you owe taxes depends on your winnings, so it’s wise to consult a tax professional in your state.
Can I use Underdog Predict on mobile?
Yes, Underdog Predict is available via both web browser and mobile app on iOS and Android. The app provides the best experience, as it’s optimized for mobile users first, with smooth navigation and quick trading.
What happens if I correctly predict events at Underdog?
If your prediction is correct when the event resolves, each contract you hold pays out $1. However, incorrect predictions expire at $0, meaning you lose your stake.
