A major daily fantasy sports site has moved away from “against the house” games.
PrizePicks confirmed to Covers that the online operator decided this month to only allow customers access to fantasy contests that pit them against each other.
Key Takeaways
- PrizePicks made the full transition to Arena contests in August.
- The peer-to-peer games help the DFS company increase regulatory compliance in several U.S. states.
- Arena was created in 2024 and pits users against each other.
“On August 22nd, PrizePicks announced a full transition to Arena in all states and territories in which we operate,” a PrizePicks spokesperson said. “We are excited to offer players a more social and engaging DFS product that sets the standard for future innovation in the DFS industry.”
Avoiding regulatory issues
The change to peer-to-peer games helps PrizePicks avoid regulatory issues in jurisdictions that deem “against the house” contests as sports betting. Arena still allows users to select player props, but it matches them into head-to-head or group contests using similar categories, like experience, entry fees, and number of stat selections. Cash prizes are awarded to the user with the highest score.
This is a model followed by several other DFS sites, including Underdog and DraftKings.
PrizePicks launched Arena games in January 2024 to combat regulatory issues in Alabama, Tennessee, West Virginia, and Wyoming. It didn’t take long before those contests branched out to New York, Florida, Michigan, and other states that challenged the DFS site’s legal compliance.
Making changes
The online operator is currently available in 45 U.S. states, including 35 that also offer legalized sports betting. PrizePicks has encountered legal issues in several states, including New York and, most recently, California. The latter, a state without legal sports betting, is considering banning sportsbook-like fantasy offerings.
PrizePicks changed to Arena games earlier this summer just before the Attorney General released an opinion stating DFS is illegal in the Golden State.
The move to peer-to-peer contests also comes less than two months after PrizePicks appointed former Massachusetts gaming regulator Todd Grossman to a compliance director role.
