Nearly two years after reaching a settlement with the New York State Gaming Commission (NYSGC), PrizePicks was awarded an interactive fantasy sports license by the regulator.
PrizePicks announced on Wednesday the looming launch of its peer-to-peer fantasy product in New York after being awarded an operating license by the NYSGC. PrizePicks plans to launch its P2P offering in New York in the coming weeks after collaborating with the NYSGC to ensure the fantasy operator adheres to compliance standards in the Empire State.
“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,” said CEO Mike Ybarra. “We’re thrilled to offer a great entertainment experience that elevates how they engage on game day and beyond.”
PrizePicks is reentering the state after agreeing to a $15 million settlement with the NYSGC for operating in the state without a wagering license. An investigation by the NYSGC determined that PrizePicks violated state law between June 2019 and December 2023.
PrizePicks agreed to a settlement with the NYSGC that was based on revenue generated from the banned contests between 2019 and 2023. PrizePicks’ operations in New York were also under scrutiny after the NYSGC voted to adopt fantasy regulations that prohibit games that mimic prop wagering.
Major operational changes for PrizePicks
PrizePicks is making its New York reentry after deciding in August to no longer offer its against-the-house DFS product in the U.S. PrizePicks transitioned to only offering its P2P Arena product in all U.S. markets in which it operates and holds a gaming license.
A company spokesperson confirmed to SBC Americas that the change took effect Aug. 22.
PrizePicks Arena, launched in 2024, enables users to compete against one another by paying entry fees for a chance to win prizes based on the lineup scores within their group.
“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,” said PrizePicks Chief Legal Officer Jason Barclay. “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 operates in more than 40 states, along with Washington, D.C. It also operates in all Canadian provinces except for Ontario. Earlier this year, PrizePicks became the first fantasy operator to gain market access in Puerto Rico after being awarded a gaming license. PrizePicks plans to launch operations in Puerto Rico in the coming months.
Underdog also reenters New York’s fantasy market
Less than six months after pulling its fantasy operations in New York, Underdog reentered the Empire State in May with the launch of its draft-style DFS games. Underdog relaunched the games after pulling all its DFS contest from New York after a ruling from the NYSGC determined the company’s products were not explicitly listed under its temporary license, which it obtained when it acquired Synkt Games in 2022. As a result of the ruling, Underdog reached a settlement with the NYSGC, agreeing to pay the regulator $18 million.
Underdog, which applied for a permanent license, has now included its draft-style DFS games in the terms of its temporary license, allowing the company to operate in New York.
