It’s been less than a decade since the PASPA Act, which outlawed sports betting in most of the United States, was judicially overturned. In the present day, just seven years since that fateful day, a number of different wagering options have already emerged.
There’s traditional sports betting, but also daily fantasy sports, prediction markets, and contract event trading, too.
Confused? Here’s the key differences between the different wagering options.
Daily Fantasy
Fantasy football, and its variants, has been around for decades.
But daily fantasy sports (DFS) has brought the old postal games into the modern era, leveraging smart technology to offer more contests in short spaces of time.
Operators like Underdog Fantasy and Dabble have seven-figure prize pools for their weekly contests, which require users to pick a team of players – be it NFL, MLB, NHL, NBA, and so on – that score more points collectively than their rivals.
There’s variety here too, with some of the top DFS apps to play now offering team and player-based prop bets alongside their traditional fantasy gaming.
Sports Betting
Think of something that can happen out on the sports field and you can probably wager on it – especially at the Super Bowl, where prop bets even include what color Gatorade shower the winning coach will be on the receiving end of.
The @Chiefs win back-to-back Super Bowls! #SBLVIII pic.twitter.com/zigbgbOUk5
— NFL (@NFL) February 12, 2024
The most popular sports betting options include moneyline, spreads (a hypothetical ‘handicap’ on the two teams), and total points/goals, although contemporary markets allow bettors to wager on team and player props, quarter and half lines, and much more besides.
Prediction Markets
Imagine sports betting, but rather than placing bets you’re buying shares in the same way you might on the stock market.
The value of said shares will then rise or fall based upon a team’s performance out on the pitch/court/ice, so as with sports betting, the idea with prediction markets is to obtain as high a value as possible.
Prediction markets cover sports as well as current affairs, politics and entertainment, and so they appeal to a wider audience than just sporting aficionados.
Event Contract Trading
Similar in a sense to both sports betting and prediction markets, event contract trading – as the name suggests – enables individuals to make a prediction on the outcome of specific events.
The range of options is incredibly diverse, with event contracts available for everything from who will win the NBA Championship to who will prevail in midterm elections.
Resilient. Relentless.
— OKC THUNDER (@okcthunder) June 9, 2025
Series tied ⚡️ pic.twitter.com/LRXHvaiw3Q
Often, event contracts are binary with a simple yes or no answer – “Will the Kansas City Chiefs win the Super Bowl?”, being one such example, with players attempting to lock in value selections.
The laws on DFS, sports betting, prediction markets, and contract trading range from one state to the next, so be sure to check out the rules in your location before getting involved.
But there’s certainly no shortage of options these days when it comes to predicting the outcome of sports and other events.
