PrizePicks has received an interactive fantasy sports licence from the New York State Gaming Commission, allowing it to resume peer-to-peer contests after an 18-month absence. The approval follows a $15 million settlement related to prohibited activities from 2019 to 2023, after the Commission banned prop-style contests in October 2023.
Ban and legal dispute
PrizePicks launched its “pick’em” games in New York in 2019. In 2023, regulators determined that contests against the house violated state fantasy sports laws. The company ceased operations in February 2024 and later agreed to a $15 million settlement with the New York State Gaming Commission, covering revenue earned between June 2019 and December 2023. The settlement did not restrict PrizePicks from applying for a new licence.
Path to a new licence
After its settlement, PrizePicks developed a peer-to-peer fantasy sports format in coordination with regulators to comply with New York’s laws. Under this model, users compete directly against each other rather than against the house, aligning with legal requirements that define fantasy contests as games of skill.
Jason Barclay, Head of Public Policy and Chief Legal Officer at PrizePicks, emphasised that the company worked closely with regulators to develop a peer-to-peer fantasy sports format that complies with New York’s legal standards.
Barclay stated, “We want to thank the New York State Gaming Commission for their collaboration and recognition of our peer-to-peer offering as a fantasy sports contest. We worked diligently to design a game that meets the Commission’s rigorous standards, and New York’s decision underscores the idea that innovation in fantasy sports can thrive within a clear regulatory framework.”
What new licence means
The New York State Gaming Commission has classified PrizePicks’ contests as games of skill, allowing the company to operate under state fantasy sports laws. New York is the 16th jurisdiction to approve PrizePicks’ skill-based fantasy format.
Mike Ybarra, CEO of PrizePicks, stated that New York’s large and active sports fan base makes it a key market for the company. He noted that the platform’s return will provide users with regulated fantasy sports options aligned with game-day engagement.
Ybarra expressed, “New York is home to some of the most passionate sports fans in the country, and we know they will be excited to have PrizePicks back. We’re thrilled to offer a great entertainment experience that elevates how they engage on game day and beyond.”
New York Senator Joseph Addabbo commended the NYSGC, emphasising that New York continues to support safe, skill-based fantasy sports that provide fun and fair entertainment to players statewide.
“By issuing this licence, the Gaming Commission is making a clear statement that our state will continue to embrace innovative Daily Fantasy Sports (DFS) games that provide New Yorkers with safe, skill-based contests they can enjoy with friends, family, and fellow sports fans,” Addabbo said in a statement to ESPN.
What sets PrizePicks apart
PrizePicks allows users to make over/under predictions on athlete performance across various sports, including NFL, NBA, MLB, and esports. Its peer-to-peer format enables users to compete directly against each other rather than the platform. PrizePicks has introduced features such as a social feed for sharing line-ups and is developing prediction markets. It is the first fantasy sports platform approved by the National Futures Association to offer prediction market functionality.
Market growth and expansion
With a valuation of more than $2 billion, worldwide lottery operator Allwyn made a calculated move by purchasing the majority of PrizePicks. Through this cooperation, PrizePicks gains the financial clout it needs to fortify regulatory frameworks, expand quickly, and keep creating its cutting-edge DFS ecosystem.
Currently operating in more than 45 North American jurisdictions, PrizePicks is one of the continent’s most accessible fantasy gaming platforms. It has gained reputation in a variety of regions thanks to its dedication to ethical gambling, regulatory cooperation, and user experience, all of which have contributed to its quick growth.
Impact on New York fans
PrizePicks is able to return its contests to the state because they are deemed games of skill under New York law. Regulated fantasy sports competitions including clubs like the Knicks, Yankees, and Bills are now available to users. The daily fantasy sports market is moving toward hybrid models that prioritise social connection, ability, and adherence to regulations.
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