New York adopts DFS regs that prohibit prop-bet style fantasy games

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Despite a push from operators like PrizePicks and Underdog Fantasy, the New York State Gaming Commission (NYSGC) voted to adopt interactive fantasy sports (IFS) regulations that explicitly prohibit games that mimic proposition betting on Tuesday.

Regulators reported that more than 4,000 PrizePicks customers submitted a form letter provided by the operator to the commission asking for props-style DFS to be included. Operators also submitted public comments requesting the regulators reconsider the proposed regulations.

The Coalition for Fantasy Sports (CFS) argued that the move would stifle competition and innovation, arguing the regulations, “would serve to solidify the IFS market domination by DraftKings and FanDuel.”

While New York lawmakers explicitly legalized DFS in 2016, it has taken until now to formally adopt regulations overseeing the industry. A court challenge to the law delayed matters until a final ruling in 2021. There are roughly a dozen DFS operators with a temporary license to operate in the state. Once regulations are finalized, the window to submit for a license will open once again.

Underdog Fantasy provided the following statement after today’s news:

“We will continue to work with the gaming commission to ensure we operate under the finalized fantasy sports rules.”

PrizePicks provided a similar comment:

“We are meeting regularly with the NYGC to discuss the future of fantasy sports in New York. We are grateful for the advocacy efforts of our many members in the state and will work with policymakers to ensure that they can continue to play the fantasy sports they know and love.”

Underdog offers a range of games besides props-style games and have revised offerings without those games in some states, while PrizePicks does not.

New York is just one of several states where DFS operators are fighting to continue operating. Florida regulators recently sent cease and desist letters to PrizePicks and Underdog in addition to some other operators informing them all forms of fantasy sports that they offer are considered illegal in the eyes of the Florida Gaming Control Commission.