Both are popular in the US and there is no shortage of platforms that serve either real money sports bets or daily fantasy sports games. But there are some vital differences between the two, not just in terms of the products but also in how they are regulated. Our goal here is to go through each and every one of these points, so that you will know the ins and outs of DFS vs sports betting, and find out what either can offer you.
We will also go through various betting sites and apps for both DFS and sportsbooks, giving you a glimpse into how your sports predictions can be best used, and what kinds of features the top platforms of either can offer you.
DFS vs Sports Betting – The Major Differences
The concrete difference between these two is that at DFS apps you are competing in prediction games, whereas a sportsbook allows you to make direct sports-based bets. The fantasy sports sites have a number of games where you can back certain players or predict player projections, but they are not made to allow “direct sports betting”. By that, we mean that you will not be able to pick a game, open the betting markets, and pick out some wagers to add to your slip. This is what you do at a US sportsbook.
If you are thinking about parlay betting, making in-game predictions, or building round robin bets, you can do this at a real money betting site. When you build a bet slip and pay it with a stake, you are placing a sports bet. Fantasy sports apps usually offer free games, where you can enter competitions and compete against others to win big prizes. But there are many types of DFS products, some of which are designed to mimic sports betting – as much as they can without becoming bona fide sportsbooks.
What You Can Do at a Sportsbook
At sportsbooks, you can place straight bets, combine numerous selections into parlay wagers, or make advanced parlay bets such as round robins, teasers, and alternative round robin combinations. The odds for each wager are presented in front of you, and if they are to your liking, you can simply add the bet to your slip. Once you are done, you choose how you would like to combine your picks (if you have multiple), or you can stick to straight bets (one-leg bets). Finally, you enter a stake, confirm the bet, and you have paid for a wager.
There are many betting possibilities offered at sportsbooks that you will just not get at fantasy sports apps. All US sportsbooks give you the option to place live bets. And at the top betting sites, you will also get cash out functions and flash bets on the next minutes of action. Plus, sportsbooks can provide a variety of bonuses and promo offers. These include bonus bets, parlay insurance offers, no sweat bets, and many more.
Types of Games at DFS Betting Sites and Apps
DFS, or daily fantasy sports, are contest-based sports prediction games that sports fans can compete in. The classic fantasy sports involves crafting a team based on a budget, picking real-life players to fill out your squad, and then they will earn points based on the players’ achievements in their next game. There are contests for the NFL, NBA, MLB, NHL, college football, college basketball, soccer, and many more. Some contests reward you on a weekly basis, and there are other contests that are just a one-off, based around one weekend of NFL games, for example.
You enter a DFS competition either for free, or are required to pay a small entry fee, and then if your players all do well in their next games, your team should climb high up the leaderboards. Some of these games are against the house (the fantasy sportsbook), but most of them will have users compete against each other. Top fantasy sports apps will also allow you to create your own tournaments and invite friends to join.
Because of the nature of the games, there are no bonus bets or similar promotional initiatives. But arguably, DFS apps don’t really need to do those, as they have plenty of free games that you can participate in. And these free games can offer prizes with real monetary value.
Pick’Em Games
These are basically the fantasy sports equivalent of betting props. The general format is that you have to make 2 to 6 player projection predictions, and you can choose between Flex Play or Power Play. Flex means that you can win prizes even if 1 or 2 of your predictions don’t come through, but the payout table is considerably smaller than Power Play, where you need to get every single prediction right. There are variants of these games that allow more picks, or where you can choose “harder” picks to add a major payout boost to your Pick’Em lineup.
Now, this game is designed to look like parlay wagers with player props, but it doesn’t work precisely that way. Because there are no “odds” and while some DFS apps give you the option to pick your player and make your prediction, they don’t give you just any kind of “prop”. Mostly, these relate to the end-game performance stats, such as how many assists/points/rebounds/steals/blocks an NBA player made (if we are comparing to NBA props).
Streaks Based Games
These are regular prediction games where you have to try to build winning streaks of correct predictions. The longer you maintain a winning streak, the larger the potential payout at the end. An example of this type of game is PrizePicks Streak, where winning predictions can win up to $1 million.
DFS vs Sportsbooks Legislation
This is where it gets interesting, daily fantasy sports are not considered gambling as sportsbooks are. The main concept that clears DFS in the eyes of the law is that they have:
- pre-conditioned entry fees (if any)
- pre-determined prizes (and in some cases guaranteed prize pools)
- “skill based” games, and outcomes are determined by the skill level of the user
So it is exempt from the Unlawful Internet Gambling Enforcement Act (UIGEA), which prohibits websites that require money to play illegal gambling games. Therefore, daily fantasy games and platforms are available in the majority of American states. They are far more widespread than US sports betting apps, but you do have to note the following. Some games (Streaks, Pick’Em, etc), may have limited state availability. Such is the fine divide between what is considered sports betting and what is not. Generally speaking, though, daily fantasy sports platforms still have a greater reach over the US than their sports betting counterparts.
Sports betting, on the other hand, is far easier to define, legally. At a federal level, sports betting is legal and has been since 2018 with the repeal of the Professional and Amateur Sports Protection Act of 1992 (PASPA). Each state in the US has the authority to regulate and govern sports betting as it sees fit, and already over 20 states have passed sports betting bills. Legalized sports betting is spreading in the US, and right now, as you are reading this, there are states that are preparing hearings and notions regarding the legalization of sports betting.
There are a few drawbacks. Some states, such as Utah, Hawaii and Alabama, are not likely to legalize sports betting anytime soon, if ever. Plus, the legalized industries are different based on which state you live in. NFL, NBA and soccer bettors don’t really have much to worry about, as the offering is practically the same in all legal US betting states. But the following categories may be limited or completely unavailable in specific states.
- College Sports (NCAAF and March Madness)
- eSports
- Power Slap
- Pickleball
- Events decided by panels*
*these include awards shows such as betting on the Academy Awards or Emmys, but can also include sports tournaments in the Olympics, where, for example, Simone Biles will get scored by a panel of judges.
College sports is quite an interesting one, as usually you can bet on college sports to your heart’s content. But, some states do not allow you to bet on player or team props, bet on local collegiate teams, or bet on games hosted in the state. Of course, there are some states with no college sports restrictions, but these are quite rare.
DFS vs Sports Betting: Taxation
Sports betting is taxed in the US, both at a federal and state level (in most states). The federal tax rate is around 24%, but it can vary depending on your marital status, income, and how much you won with your wagers. State taxes vary between different US states. You can check out exactly how much you owe in taxes on your sports bets using our free gambling winnings tax calculator.
DFS winnings are, unfortunately, also taxable. The IRS has an excise fee of 0.25% on the amount you pay for entry fees, and if you earn over $600 in winnings, you will have to fill out a 1099-Misc tax form.
Eligibility to Enter DFS Contests
Despite having free to enter contests and games, DFS is not intended for minors. The legal gambling age for using DFS sites and apps is 18+ years old, though there are states in which this minimum age limit is raised to 19+, and even 21+.
19+ DFS Legal Age In:
- Nebraska
- Alabama
21+ DFS Legal Age In:
- Arizona
- Florida
- Iowa
- Louisiana (select parishes)
- Massachusetts
But take note that certain types of DFS games or paid contests may not be available in all states and there may be specific conditions for their different betting products.
Best DFS and Sports Betting Apps
With all that in mind, let’s check out the best DFS vs sports betting platforms. We picked the following sites based on the quality of their DFS/sports betting products, their exclusive features, state availability, and all the little nuanced aspects of the experience they create for sports fans. If you want more information on any of them, feel free to check out our in-depth reviews.
Top DFS Platforms
The best daily fantasy sports apps, in our opinion, should give users a good range of games and cover lots of different sports. Only then, you can let your imagination run wild with your sports predictions and you have the flexibility to join all kinds of contests. Even beginners can benefit from playing at these sites, as you will not be expected to compete against players with years of experience for the top prizes. Plus, these apps have plenty of educational information and guides to help ease you into DFS if you are a complete newcomer.
#1. DraftKings Fantasy
DraftKings Fantasy is one of the most well known DFS apps in the USA, and has a huge pool of contests, sports coverage, and exciting features. You can enter free contests, or featured ones that require an entry fee of anywhere from $5 to $10. And the minimum deposit limit at DraftKings is set at $5, which is quite affordable even for players on a budget.
The fantasy sports selection is vast and varied, with H2H contests, daily or season-long competitions, and public or private games. If you want to dabble in Pick’Em games, you can download the DraftKings Pick6 app, an affiliated mobile app that has excellent player projection-based prediction games. As one of the top players in the industry, DraftKings is available in over 40 states and all Canadian provinces. Its sports offering covers 14 categories including the ever-popular NFL, NBA, MLB, NHL, college sports and soccer tournaments.
#2. FanDuel Fantasy
FanDuel Fantasy is a hugely popular fantasy sports app that has a good range of games. FanDuel Fantasy is available in 44 states, and has a low entry fee on its featured contests, at just $ or $2. There are contests for players of every level, and to make matters better, FanDuel makes it easy for you to find players of a similar level of experience to you. There are Snake Drafts, Free Entry Games, and the possibility to contests against your friends.
One thing that we felt FanDuel does better than any other platform is its way of handling newcomers. You can be a complete beginner to DFS games, and FanDuel will provide you with games and contests where you can hone your skills. And you won’t need to become an expert to earn on your DFS lineups or games, as there are enough contests for newcomers to give you a realistic shot of hitting some top prizes or taking top spot in a leaderboard.
#3. PrizePicks
PrizePicks, unlike DraftKings or FanDuel, is fully dedicated to fantasy sports and has no affiliated real money sportsbook. This app doesn’t have the classic DFS games, but focuses on alternative games such as Pick’Em and Streaks. The Pick’Em game is available in both normal mode (where you play against the house), and Arena mode, where you compete against other players. You can pick between Flex and Power Play for either, and craft your picks on virtually any player in any sports league.
You must fund these picks to compete, and a minimum of $1 is needed. And then there is PrizePicks Streaks, where your goal is to make winning predictions consistently. String two wins together and you can enter a free 4-pick Power Lineup, a game that can unlock huge cash prizes. However, the only thing to note is that PrizePicks Streaks is available only in 10 states right now.
Best US Sportsbooks
The USA has some of the best parlay betting sites and sports betting coverage you can possibly hope for. Parlay betting and SGP wagers are extremely popular in the US, and as such, the top betting sites give you more than enough betting markets and combination possibilities to customize and personalize your bet slip. There are also loads of recurring and one-time bonuses to give you an edge, and functions that you can take advantage of. The standard is very high, as the top US sportsbooks compete to provide a more comprehensive and superior betting experience.
#1. DraftKings Sportsbook
DraftKings is among the best sportsbooks in the USA, with a huge scope of sports covered and plenty of features to enhance the betting experience. It is well equipped for SGP and parlay betting, with innovative types of DraftKings parlays, and an SGP mode where you can easily build your same game bets.
The platform has an exclusive loyalty program and no shortage of parlay boosts, insurance offers, and other perks to give you better value for money. And on the subject of money, DraftKings has a flexible range of payment options. You can handle your money via PayPal, Venmo, AmEx, and many other secure payment gateways.
#2. FanDuel Sportsbook
A titan among the top American sportsbooks, FanDuel gives sports bettors all the tools and wagers they need. FanDuel is an exceptional choice for parlay bettors, with no shortage of props bets, lengthy odds and options to adjust lines on teasers, experiment with SGP wagers, and even re-use selections to make more FanDuel parlays. It rewards members with loads of recurring profit boosts, insurance wagers and plenty of Free Games – not too dissimilar from fantasy sports games – for opportunities to win prizes.
It is also worth mentioning that this app has excellent live betting markets, with flash bets and a full and partial cash-out function to give you greater flexibility on managing your ongoing wagers. Plus, FanDuel makes banking simple with convenient payment gateways and a low minimum deposit limit of just $10.
#3. Caesars Sportsbook
Caesars merged with William Hill back in 2021, enhancing Caesars Sportsbook with decades’ worth of sports betting experience. This platform operates in over 20 legal betting states, and has official partnerships with the NFL, NBA and NHL. Caesars covers loads of different types of sports, with a variety of betting markets, live bets, futures and even streams on selected sports (including NFL streams).
In terms of bonuses, at Caesars, you will find daily odds boosts, preselected enhanced odds SGPs, and many recurring profit boost tokens or insurance offers. To make matters better, it has an exclusive Rewards program that can provide you with monthly bonus bets. And you can earn comp points on your wagers, which can then be redeemed for even more bonus bets. Caesars caters to bettors of virtually any budget. It has premium features for high-stakes bettors. For bettors on a budget, the banking options at Caesars are top-notch: you can deposit from as little as $5, and withdraw winnings as low as $1.
Sub-Branches of Sports Betting
Fantasy sports and real money sports betting are the two most well-known betting platforms for sports fans, but they are by no means your only options. There are many ways through which you can test your sports knowledge and earn money for winning predictions. Here are three alternatives and some recommended apps or sites for each.
Social Sportsbooks
At a basic level, social sportsbooks are the free to play equivalent of real money sportsbooks. They have all the same betting opportunities and odds on bets, but you don’t play for US dollars. Instead, each platform has its own token currencies: one for the free sports predictions (Gold Coins, or equivalent names). And the other is a currency for sweepstakes competitions (Sweeps coins).
You earn these through winning your bets, daily logins, social media giveaways, and other promotions. You can also buy these coins with real money, if you need a top up and cannot wait for the next login bonus.
But then social sportsbooks also have a DFS element to them. Most of these platforms also have sweepstakes competitions, which you can compete in using another currency, the Sweeps Coins (or equivalent). These can be won through your sports bets, and cannot be purchased, like the other coin can. You can play with your Sweeps Coins in competitions, similar to DFS leaderboard contests, and earn prizes with real monetary value.
And because no real money is required, they do not fall into the same legal bracket as real money sportsbooks, so social sportsbooks are available in the majority of US states. Fliff, Rebet, and Thrillzz are a few examples of top-rated social sportsbooks with exceptional sports coverage and great perks.
Peer to Peer Betting
This is an old concept that has only gained traction in the US in the past decade. Basically, instead of a sportsbook selling wagers to players like you, you can buy wagers or sell them to other players. You can set the odds, and then stake your bet. Another member of the platform can then lay your bet, placing a bet against your wager. Should your bet win, you will take their money, but if you lose, they will take yours.
The top P2P betting apps have huge marketplaces for peer-to-peer bettors to bet against each other. The apps take a small commission for their troubles, which is less than the juice that sportsbooks apply on their odds. So you are getting better value on your wagers, and can set the price on your bets. The top apps that do this in the US are Novig and social sportsbooks like Rebet also have peer-to-peer betting functions.
Event Contract (Prediction Betting) Markets
Depsite being relatively new, this type of sports betting is really becoming a big hit in the US. Prediction betting doesn’t have classic sports bets and betting odds, it uses event contracts instead. These are contracts that use a Yes/No format, and can relate to virtually anything. Will the Kansas City Chiefs win the next Super Bowl? You can buy Yes contracts or No contracts.
The yes and no contracts must be collectively worth up to $1, so if a Yes contract costs $0.25, the No contract would be priced at $0.75, or just under. But the prices can fluctuate, especially when the event in mind (who wins the next Super Bowl), is months away from settling.
You can buy contracts, wait for them to settle, or cash them out when the contract is worth more money than when you bought it. Think of it as a stock exchange but with sports prediction contracts. Right now, the top platform for event contract exchanging is Kalshi.
