PrizePicks is now registered as an entity that can offer predictions on its platform through a partnership.
The approval as a Futures Commission Merchant by the National Futures Association was granted on Monday, the same day Allwyn announced it was buying a majority stake in PrizePicks for $1.6 billion.
That means PrizePicks can accept predictions from customers offered by designated contract markets, like Kalshi or Crypto.com. No partner was mentioned in the release.
PrizePicks boasted that it is the “first company affiliated with a fantasy sports operator” to get FCM certification from the NFA in Tuesday‘s release. Underdog, which launched sports predictions at the beginning of September in 16 states, is not an approved FCM but can still accept predictions through a partnership with Crypto.com.
Are sports predictions part of the deal?
PrizePicks’ Chief Legal Officer Jason Barclay called his company the “nation’s leader in predictions,” a nod to the company’s popular pick’em style daily fantasy sports games.
But PrizePicks does not mention that it will accept sports predictions anywhere in the release. A company spokesperson said there is “nothing immediate to share” on content plans or a launch timeline.
FanDuel announced it was entering the predictions world partnered with CME Group in August but also did not clarify whether it would accept sports predictions or not. DraftKings is interested in predictions as well, though CEO Jason Robins said the company will not make any announcements until the company is ready to act.
Multiple regulators have warned that offering sports predictions while licensed as a sports betting operator could lead to the loss of the operator’s sports betting license.
Transformative times for PrizePicks
Allwyn said buying PrizePicks lets the company expand into the “strategically important sports and entertainment industry” in the US:
“For Allwyn, the transaction is a unique opportunity to enter the strategically important sports and entertainment industry in the United States, expanding its business in the country beyond its existing operation of the Illinois Lottery.
“With a shared belief in the power of technology and commitment to responsible play and community impact, PrizePicks is highly complementary to Allwyn’s expanding portfolio in casual entertainment – in line with its vision to become the world’s leading gaming entertainment company.”
