Popular daily fantasy sports operator PrizePicks is getting into the prediction market industry.
Key Takeaways
- PrizePicks announced approval on Tuesday by the Futures Commission Merchant.
- The DFS operator hasn’t released plans yet on what will be offered and when event-outcome markets will be launched.
- Expanding into predictions is something PrizePicks has been watching closely.
Performance Predictions II, LLC, a subsidiary of PrizePicks, received approval from the National Futures Association (NFA) and is now a registered Futures Commission Merchant, the company announced on Tuesday.
First reported by Dustin Gouker, PrizePicks can start offering prediction markets regulated by the Commodity Futures Trading Commission (CFTC), which oversees popular event-outcome platforms like Kalshi and Robinhood.
A bit of news in the middle of the night: It's all PrizePicks news all the time now, right? PrizePicks won approval as a futures commission merchant on Monday, which means its entry into CFTC-regulated prediction markets could be imminent.https://t.co/9YFtQDkKDG pic.twitter.com/jZyUQ4PgUG
— Dustin Gouker (@DustinGouker) September 23, 2025
“The honor of being the first sports entertainment platform to receive a FCM registration from the NFA is a testament to our industry-leading compliance and consumer protection programs that both the NFA and CFTC demand,” PrizePicks CEO Mike Ybarra said. “Acting Chairman Caroline Pham’s vision for the CFTC promotes innovation while reinforcing the importance of strong regulatory standards. Her leadership has set a thoughtful tone for the agency and our industry.”
A PrizePicks spokesperson said the operator doesn’t have any plans for a launch date or what will be offered yet, but more news will follow on the DFS company’s entrance into this space.
Expanding into predictions
Before the NFA approval, PrizePicks executives told Covers on Monday that expanding into prediction markets was something they were closely monitoring, and that evolving into an entertainment platform outside of just sports was on the horizon.
“I feel like every week there’s something new that’s happened in this space, but I also see it as a big opportunity,” Ybarra told Covers before the announcement. “We’re not ignoring it. We’re definitely looking at it.”
Ybarra also said that PrizePicks has been in communication with and sought feedback from state regulators about what he called “adverserial views from some of the states on what it would mean to go into prediction” markets.
The DFS operator said on Tuesday that it will collaborate with the CFTC and NFA to “bring new, consumer-friendly solutions to the industry and ensure that the company meets the highest standards of regulatory compliance.” PrizePicks added that it will provide secure, responsible, and enjoyable prediction experiences for customers.
“As the nation’s leader in predictions, this is a defining moment for us,” Jason Barclay, chief legal officer and head of public policy for PrizePicks, said. “We are grateful to the NFA for its thoughtful process and diligent work on our application.”
Evolving landscape
PrizePicks currently offers peer-to-peer fantasy games across 45 U.S. jurisdictions. Only picks for player props and stats are available to customers. PrizePicks does not offer a traditional sportsbook.
Expanding into prediction markets will allow users to pick game winners and other events that are more like sportsbooks, putting PrizePicks into a growing industry that’s available in all 50 U.S. states. Kalshi, the most popular prediction platform in the U.S., recently added point spreads and totals to its contract-purchasing NFL and college football markets.
PrizePicks will be joining competitor Underdog in the prediction market. However, PrizePicks is the first U.S. DFS operator to have its own entity registered and able to offer event outcomes. Underdog partnered with Crypto.com to offer game winners on its platform. PrizePicks will likely be able to provide more diverse markets through its subsidiary.
This is the second consecutive day with big news for PrizePicks. Lottery operator Allwyn expanded its North American reach by announcing an agreement to acquire 62.3% of PrizePicks, a deal that is expected to be finalized in the first half of 2026 and gives the DFS company a valuation of $2.5 billion.
