Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioPrizePicks has announced that it has obtained a license to offer fantasy sports in New York once again. The platform said it will launch its peer-to-peer games in the state in the coming weeks.
In a press release, Mike Ybarra, CEO of PrizePicks, said, “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. We’re thrilled to offer a great entertainment experience that elevates how they engage on game day and beyond.”
New York becomes the 16th jurisdiction to formally ratify that PrizePicks’ contests can be offered as games of skill under its fantasy sports laws.
PrizePicks Forced Out of NY After DFS Crackdown
New York is the biggest state for sports betting in the country. The return of the NFL last month saw bettors wager $2.29 billion on sports. However, PrizePicks was forced out of the state last year.
The company previously operated in the Empire State, but the New York State Gaming Commission (NYSGC) alleged that it did so illegally. PrizePicks said it was running its DFS games in a “good-faith belief that it had the ability to do so.”
Regulators introduced stricter rules around fantasy sports in October 2023 and clamped down on operators. PrizePicks reached a legal settlement with the NYSGC in early 2024, agreeing to pay $15 million of the revenue generated by its prohibited activities between 2019 and 2023.
Similarly, rival platform Underdog paid a penalty of $17.5 million and withdrew operations from New York. The company has since relaunched in the state with a reduced version of its games.
PrizePicks said it has worked with the Commission to ensure that its license application was successful. Jason Barclay, PrizePicks’ Head of Public Policy and Chief Legal Officer, said, “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.”
The company completely ended its against-the-house games earlier this year amid growing legal scrutiny in California. Barclay added that it has been working hard to design its games to meet regulatory standards.
He said, “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.”
PrizePicks Prepares to Enter Prediction Market Space
While it has met New York’s standards to allow for reentry to the market, the company could face future legal scrutiny if it enters the prediction market space.
Last month, it obtained a license from the Commodity Futures Trading Commission (CFTC) as a futures commission merchant (FCM). This is the same license that allows Robinhood to offer prediction markets in collaboration with Kalshi.
The company will do business under the name PrizePicks Predict, but has not yet announced any concrete plans to launch prediction markets. The license agreements with the CFTC and NYSGC follow news that Allwyn will take a controlling stake in the company. The lottery giant paid an initial $1.6 billion for a 62.3% stake in PrizePicks.
On the takeover, Ybarra said, “By joining forces with Allwyn, a like-minded and disruptive company that shares our passion for bold product innovation, we will accelerate our mission to make our games more interactive, engaging, and rewarding for fans everywhere.”
