News moves fast when it comes to prediction markets. PrizePicks‘ week has been evidence of that.
On Tuesday, the daily fantasy sports operator announced a multiyear deal with Polymarket to offer event contracts, including on sports, on its app at an undetermined time in the future.
On Friday, it hit the gas pedal by unveiling a multiyear partnership with Kalshi to immediately begin offering prediction markets in 38 states plus D.C., including sports markets in 15 states.
Through its Performance Predictions II subsidiary, a federally approved futures commission merchant (FCM), PrizePicks will work with multiple designated contract markets (DCMs) to offer prediction markets. The exact contracts that users can access varies from state to state.
Kalshi sports contracts live on PrizePicks in 15 states
PrizePicks now has three official product verticals: Player Picks, Team Picks and Culture Picks. The company’s VP of Communications Elisa Richardson confirmed to SBC Americas that Player Picks is the company’s pre-existing fantasy lineup picks offering, which has been a peer-to-peer only product since August.
Culture Picks are event contracts that mark PrizePicks’ expansion beyond sports into current events and pop culture, including markets like music, movies and politics.
Team Picks let customers pick the winner of sporting events, from individual matchups to season-long futures like win totals, playoff chances and championship winners. The sports offering is available in 15 states where legal online sports betting is not available to PrizePicks.
“Expanding into prediction markets delivers on what our customers want, innovative products with more ways to play,” said CEO Mike Ybarra. “Together with Kalshi, we will welcome new customers across many states to the PrizePicks experience, and we couldn’t be more excited about the opportunity ahead in this fast-growing space.”
“As of today, people will be able to access Kalshi’s prediction markets within the PrizePicks app,” added Kalshi Co-Founder and CEO Tarek Mansour. “This is a game-changing moment, and we’re excited to be the first to fuel and supercharge the PrizePicks fan experience.”
Between its prediction markets and its P2P DFS offering, PrizePicks is now available in all 50 states plus D.C.
PrizePicks and chooses
PrizePicks signposted its move into event contracts when it announced in September that it was the first sports entertainment operator to be registered as an FCM by the National Futures Association (NFA). Richardson told SBC Americas this week that is a differentiator from other gaming operators entering the prediction markets space, as it “gives us the best opportunity to operate legally and long term.”
Like fellow DFS platform Underdog did before it with Crypto.com, and similarly to how FanDuel and DraftKings have said they will proceed with their respective prediction market products, PrizePicks is not offering sports contracts in states that regulate online sports betting. Instead, it is focusing on untapped sports markets including Texas and Georgia.
Unlike Underdog, which is not a registered FCM, PrizePicks is not offering prediction markets in California, where Attorney General Rob Bonta’s office issued a broad negative opinion on all paid DFS contests this summer.
The expansion of FanDuel, DraftKings, PrizePicks and Underdog comes as gaming regulators in several states continue to warn operators that participating in prediction markets could violate gambling laws and threaten their gaming licenses.
In two of the states to speak out recently, Arizona and New York, PrizePicks holds a fantasy sports license.
Richardson added PrizePicks’ varied rollout of prediction markets reflects “a mindful approach” to where it launches specific products in order to maintain positive relationships with state regulators and legislators.
