PrizePicks no longer offers against-the-house daily fantasy sports (DFS) in the U.S.
The country’s largest DFS operator has transitioned to only offering its peer-to-peer Arena product in all states and territories in which it operates, a company spokesperson confirmed to SBC Americas.
“We are excited to offer players a more social and engaging DFS product that sets the standard for future innovation in the DFS industry,” added the spokesperson.
The change took effect Aug. 22.
Previously, the Atlanta-based company offered its against-the-house Pick’Em product in 17 states plus D.C. Those states included markets like California and Texas where fantasy sports is unregulated at the state level.
PrizePicks first launched Arena in January 2024. Players pay an entry fee to compete against one another for the chance to win prizes by creating the highest-scoring lineup within their group.
From state-by-state tweaks to nationwide shift
PrizePicks has stated multiple times that its Arena product has risen in popularity in recent years, and it is also a version of DFS that comes under less intense scrutiny than against-the-house Pick’Em, which some state regulators have argued is tantamount to sports betting. The operator has replaced Pick’ Em with Arena in a number of jurisdictions, particularly those where there was regulatory scrutiny around against-the-house fantasy products.
It also notably moved to Arena play only in California as of June 30, after years of offering Pick’Em play. PrizePicks made that switch shortly before California Attorney General Rob Bonta’s office issued its opinion that all forms of DFS, both peer-to-peer and against the house, ran afoul of state law. Fellow DFS giant Underdog made a similar change in that state after the opinion was released.
As of Aug. 25, PrizePicks operates DFS contests in 45 states, Washington, D.C. and all Canadian provinces except for Ontario. It also recently secured a license in Puerto Rico. Its real-money game is available in all but 10 of those markets. In the following states, PrizePicks players can only use the Streak free-to-play product:
- Connecticut
- Iowa
- Louisiana
- Maryland
- Michigan
- Mississippi
- New Jersey
- New York
- Ohio
- Pennsylvania
Is PrizePicks looking at prediction markets?
The pivot to full peer-to-peer comes at a time where the company is also considering its options in the realm of prediction markets.
The database of the National Futures Association (NFA) lists an entity called Performance Predictions II LLC as a pending member, which is the legal name of the company behind PrizePicks. PrizePicks leadership, including CEO Mike Ybarra, are attributed as leaders of the NFA registrant, with Ybarra as its CEO.
PrizePicks filed for NVA membership on May 28 and has also applied for status as a Futures Commission Merchant (FCM) and a Swap Firm.
Registration with the NFA is an important preliminary step in obtaining the regulatory approval and licensure necessary to be regulated as a futures and derivatives market by the Commodity Futures Trading Commission (CFTC). As well as PrizePicks, entities with clear ties to DraftKings, Underdog and Fanatics Betting and Gaming are listed as NFA applicants.
