PrizePicks Lands New York DFS License

• Operator’s peer-to-peer model helps it reenter New York
• Not clear if PrizePicks is eyeing a sports betting license in the state

Daily fantasy sports (DFS) operator PrizePicks said today it won approval to reenter New York, promising to launch peer-to-peer DFS games in the fourth-largest state in the coming weeks.

Following a $15 million settlement with the New York State Gaming Commission (NYSGC) for operating in the state without a gaming license, PrizePicks left New York in February 2024. Since then, the Atlanta-based company worked with New York regulators on a plan to legitimately reenter the state.

PrizePicks worked closely with state gaming regulators to ensure that its new peer-to-peer contests comply with New York’s strict fantasy sports requirements that were expanded by the Commission in 2023. New York becomes the 16th jurisdiction to formally ratify that PrizePicks’ contests can be offered as games of skill under its fantasy sports laws,” according to a statement.

The gaming company now has an interactive fantasy sports operating license in New York.

PrizePicks Peer-to-Peer Methodology Matters

Peer-to-peer DFS avoids some of the controversies associated with initial iterations of those games, which were largely against-the-house competitions.

For its part, PrizePicks has largely abandoned the against-the-house model. The company, which says it’s the largest DFS firm in North America, currently offers player vs. house DFS in just three states — North Carolina, Texas, and Virginia.

Last month, closely held PrizePicks sold a 62.3% stake to lottery operator Allwyn for an initial cash payment of $1.6 billion in a deal resulting in a $2.5 billion enterprise value on the DFS operator.

Could PrizePicks Eye New York Sports Betting License?

To be clear, PrizePicks didn’t mention the possibility of pursuing a New York sports betting license in the aforementioned statement, but there is an open permit in the state following the recent departure of Genting’s Resorts World Bet.

It’s possible PrizePicks could be a contender for that license if it proves adept at following compliance protocols tied to its interactive fantasy sports operating permit. However, PrizePicks is also moving into prediction markets, which could damp efforts to procure standard online sports betting permits.

There’s speculation that Bet365 could pursue the license previously held by Genting, but that’s merely a rumor for now.