PrizePicks is headed back to New York more than a year after exiting the state as part of a multimillion-dollar settlement with regulators.
The Atlanta-based daily fantasy sports operator announced Wednesday it has been awarded an interactive fantasy sports license by the New York State Gaming Commission and will relaunch in the coming weeks.
PrizePicks’ pick’em games will function under its peer-to-peer “Arena” format, where prizes are drawn from pooled entry fees, replacing its previous player-vs.-house contests.
PrizePicks switches format
The company’s return follows a $14.97 million settlement with the NYSGC in February 2024 for operating without a license from June 2019 through December 2023. As part of that agreement, PrizePicks ceased paid operations and pledged to work with regulators to develop a compliant product.
“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,” CEO Mike Ybarra said in a statement. “We’re thrilled to offer a great entertainment experience that elevates how they engage on game day and beyond.”
New York adopted rules in October 2023 banning pick’em fantasy contests that pit players against the house on the grounds they function more like sports betting prop bets than games of skill. Fantasy operator Sleeper exited the market shortly after, while PrizePicks left following Super Bowl 58.
PrizePicks began rolling out its peer-to-peer format in 2023 after regulators in multiple states took issue with player vs. house pick’em contests crossing over into unlicensed sports betting. That pivot, first made by rival Underdog Fantasy, has mostly satisfied regulators, though both companies continue to operate in California despite threats from the Attorney General.
NY part of expansion plans
The return comes during a transformative stretch for PrizePicks, which recently agreed to sell a 62% stake to European lottery giant Allwyn in a deal worth up to $2.6 billion. The company says that backing will fuel plans to expand and add sports prediction markets, another fast-emerging but controversial vertical many states allege is unlicensed sports betting.
New York is now the 16th jurisdiction to formally recognize PrizePicks’ peer-to-peer contests as games of skill under fantasy sports laws. The company operates in more than 45 jurisdictions nationwide.
