PrizePicks is returning to the Empire State.
Key Takeaways
- PrizePicks received an interactive fantasy sports operating license from New York regulators.
- PrizePicks will begin offering peer-to-peer games in the Empire State in the coming weeks.
- This development resolves a legal matter that began in 2024.
The popular daily fantasy sports operator announced on Wednesday that it has received an interactive fantasy sports operating license from the New York Gaming Commission.
Nearly a year after PrizePicks reached a $15 million settlement with Empire State regulators, the DFS company’s peer-to-peer contests now meet New York’s fantasy requirements that were expanded in 2023. PrizePicks expects to be operating in the state in the coming weeks.
“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,” said Jason Barclay, PrizePicks' Head of Public Policy and Chief Legal Officer. “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.”
How they got here
PrizePicks began offering its player prop-like games in New York in 2019, but it ceased operations in February 2024 after its “pick’em” games that pitted users against the house were deemed illegal by the gaming commission. Regulators cracked down on DFS sites, and PrizePicks was not authorized to be in New York and didn’t hold a temporary license.
PrizePicks stated that it believed it was operating in good faith and intended to pursue a fantasy gaming license in the Empire State. In November 2024, the company settled its legal issues with New York regulators with a financial penalty that was based on revenue generated from June 14, 2019, and Dec. 19, 2023.
The fine didn’t prohibit PrizePicks from seeking a license, and the matter has now been fully resolved.
"By issuing this license, 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," New York State Sen. Joseph Addabbo said in a statement to ESPN.
Growth and innovation
PrizePicks is one of the fastest-growing DFS companies in the U.S. and currently operates in over 45 North American jurisdictions. International lottery operator Allwyn recently purchased a majority stake in PrizePicks, which raised the valuation to over $2 billion and gives the DFS operator the ability to accelerate its growth and innovation.
PrizePicks ceased offering all “against the house” games earlier this year and has been focusing on becoming more of an entertainment platform, releasing a social media-type feed last week. The company became the first sports entertainment platform to receive approval from the National Futures Association to offer prediction markets. PrizePicks has yet to announce when it will roll out that product.
Meanwhile, returning to New York, which has strict fantasy rules but is the most lucrative sports betting state in the U.S., is a significant development for PrizePicks' continued growth.
“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," said Mike Ybarra, CEO of PrizePicks. "We're thrilled to offer a great entertainment experience that elevates how they engage on game day and beyond.”
