PrizePicks secured a pair of gaming licenses in two new markets providing the daily fantasy operator with access to a new state in New England and a Caribbean territory.
The Atlanta-based company announced on Thursday that it has gone live with its real-money, peer-to-peer fantasy sports product Arena in Maine after being awarded a gaming license in the state. PrizePicks was also awarded a historic gaming license in Puerto Rico, becoming the first DFS operator to gain market access in the U.S. territory.
PrizePicks plans to go live in Puerto Rico in the coming months. It hasn’t disclosed whether it will be offering Arena, pick’em or its free-to-play offerings in the U.S. territory.
“We’re grateful to the Puerto Rico Gaming Commission and the Maine Gambling Control Unit for their partnership and support throughout the licensure process,” said SVP of Legal & Compliance Adam Packer. “We’ve seen tremendous engagement with Arena across the country, and we’re confident that momentum will carry into these new jurisdictions.”
Puerto Rico gives PrizePicks market access to 47 jurisdictions across North America.
Maine’s DFS market
PrizePicks is entering a new market where DFS regulation is a key focus.
The Maine Gambling Control Unit (MGCU) levied a $391,850 fine against Underdog in 2023 for violations related to its pick’em offerings.
In 2021, Underdog began offering its pick’em contests in Maine before regulators took action arguing that state rules did not include fantasy contests against the house. The MGCU also took issue with Underdog allowing contest entries based on the outcome of a single sporting event, a violation of Maine gaming law. The regulator’s pushback against pick’em contests led PrizePicks to only launch its Arena product in Maine.
As a result of the regulatory oversight in Maine, five DFS operators including Underdog exited the state in April 2024. The operators also included Data Force, Bidventures, Boom Shakalaka and Sportshub.
Lawmakers in Maine are also paying attention to DFS.
Earlier this year, Sen. Craig Hickman introduced Senate Bill 33 as a measure that mandates that a fantasy contest cannot be based on a prop wager “or a contest that has the effect of mimicking a proposition bet.” The bill defines a prop bet as a “wager made regarding the occurrence or nonoccurrence of an event or circumstance during a sports event that is not dependent on the final outcome.”
SB 33 was passed in both the House and Senate. In May, the piece of legislation was signed by Gov. Janet Mills.
California opinion sparks changes for PrizePicks
Earlier this month, the operator shuttered operations of its against-the-house pick’em product in California after Attorney General Rob Bonta issued a negative opinion on DFS.
PrizePicks is only offering its Arena offering in California amid the negative opinion from Bonta, who vows to take action against DFS platforms operating in the Golden State.
PrizePicks broadens reach in sports and entertainment
The DFS operator is partnering with KLUTCH Sports Group, a sports and entertainment talent agency with a portfolio of clients that includes NBA superstar LeBron James.
KLUTCH, founded in 2012 by CEO Rich Paul, leverages its partnership with United Talent Agency to provide brands and companies with branding and communications support.
As part of its partnership with PrizePicks, KLUTCH will advise the DFS operator on talent strategy, brand development and navigating the sports and entertainment ecosystems.
PrizePicks and KLUTCH will also collaborate on marketing campaigns.
