NY regulator and PrizePicks reach $15M settlement for prohibited contests

PrizePicks New York
Image: Shutterstock

PrizePicks is having to pay a price for offering pick’em-style fantasy contests in New York.

The daily fantasy sports operator has reached a $15 million settlement with the New York State Gaming Commission (NYSGC) for operating in the Empire State without a wagering license, according to an ESPN report. The fine comes after PrizePicks announced earlier this week that it will cease operations of its pick’em-style contests in New York amid regulatory changes in the state. The changes in New York prohibit fantasy games that mimic proposition betting.

PrizePicks had expected to consider applying for a wagering license in New York. Now, the operator faces an uphill battle as the NYSGC determined that the company violated state law between June 2019 and December 2023. PrizePicks’ settlement with the regulator is based on the revenue the company generated from the barred contests during that span.

“Our team is pleased to have reached a resolution with the Gaming Commission and we look forward to continuing our work with the State to modernize New York’s daily fantasy sports laws,” PrizePicks told ESPN. “As safer, skill-based DFS contests like ours rise in popularity, we will work constructively with policymakers on thoughtful legislation that allows New Yorkers to play the contests they love.”

Despite issues in New York, PrizePicks has been expanding its reach with new products and partners. In January, the operator debuted peer-to-peer gaming platform PrizePicks Arena. The offering allows users to compete in groups for a guaranteed prize pool and puts PrizePicks in competition with other operators with p2p products, including DraftKings.

PrizePicks has also bolstered its portfolio with a marketing partnership with the Stephen A. Smith Show. The pact makes PrizePicks the exclusive daily fantasy partner of the sports, entertainment, and pop culture program. As part of the deal, the Stephen A. Smith Show will air dedicated PrizePicks segments while distributing exclusive social media content.