Almost four months after being awarded an interactive daily fantasy sports (DFS) license by the New York State Gaming Commission (NYSGC), PrizePicks is back in the state with its peer-to-peer offering.
The Atlanta-based company announced the launch of its P2P fantasy sports product, PrizePicks Arena, in New York after previously exiting the Empire State in 2024 over compliance concerns. The company used to offer New Yorkers access to against-the-house, pick’em-style DFS contests, but pulled those games from the state amid regulatory changes that prohibited games that mimic prop betting.
PrizePicks Arena debuted in January 2024, offering a P2P product that allows users to compete against one another by paying entry fees for a chance to win prizes based on player lineups. Arena gives PrizePicks smoother access to U.S. markets where state gaming laws and regulations ban or limit against-the-house DFS. PrizePicks made a company-wide change last summer, switching from against-the-house products to P2P only across the U.S.
“Returning to New York is a testament to the state’s commitment to embracing innovative gaming products,” said PrizePicks SVP of Government Affairs Nick Zabriskie. “Players deserve a competitive landscape, allowing them to engage with their favorite contests in a regulated environment. We’re excited to bring our games back to sports fans who have eagerly been awaiting our return and to extend our footprint in the Empire State.”
PrizePicks settlement leads to changes in New York
PrizePicks changed its operational strategy in New York after reaching a $15 million settlement with the NYSGC in February 2024 for operating without a wagering license. The commission determined that PrizePicks violated state law between June 2019 and December 2023 for accepting what it deemed to be equivalent to sports wagers in New York without proper licensing.
PrizePicks’ settlement with the NYSGC was based on the revenue it generated from the prohibited contests it offered during that span. PrizePicks and the NYSGC would later see eye-to-eye, with the operator being awarded a fantasy sports license in October 2025.
The license enables PrizePicks to offer its P2P offerings to players across New York, and Arena has now officially launched in the state. PrizePicks noted that New York is the 16th state to formally ratify its fantasy contests.
New ownership, new products for PrizePicks
PrizePicks is back in New York under new ownership.
Last month, European lottery firm Allwyn closed its acquisition of a 62.3% stake in PrizePicks in a deal valued at roughly $1.5 billion. The transaction also includes potential additional cash compensation if PrizePicks meets specific performance-based benchmarks.
As well as its DFS pivot, PrizePicks expanded its reach through event contract trading. Last November, PrizePicks launched event contracts via its subsidiary’s status as a CFTC-registered futures commission merchant (FCM), and simultaneously unveiled a multiyear deal with Kalshi. PrizePicks also has a deal allowing it to offer Polymarket contracts on its app.
NYSGC Chair Brian O’Dwyer said in November, days after those deals were announced and weeks after the commission licensed PrizePicks for DFS, that it would reassess the license situation of prediction market participants.
