PrizePicks Could Be Positioning Itself for Sale, Valuation May Be $2 Billion
Posted on: August 20, 2025, 12:03h.
Last updated on: August 20, 2025, 01:19h.
- DFS operator’s move to PVP model could be attractive to suitors
- Online betting firms could kick to the tires on PrizePicks
- Rival Underdog Fantasy’s recent valuation could be boon for PrizePicks
Daily fantasy sports (DFS) operator PrizePicks has largely shifted to a player vs. player (PVP) model — a move that preserves its access to some of the largest states and one that could position the company to be a takeover target.
In a report out Wednesday, Eilers & Krejcik Gaming (EKG) notes PrizePicks “has pursued that PVP change more rigorously than rivals—potentially in a bid to make itself an attractive merger and acquisition target.” Under the PVP format, DFS players compete against each other rather than against the house — a relevant distinction at a time when some states, including California, are cracking down on player vs. house DFS games.
Some state regulators have upped scrutiny on the traditional DFS model, implying it’s another form of sports wagering, indicating PrizePick’s move to the PVP format was shrewd.
The operator now offers player vs player (PVP) formats to ~55% of the US,” notes EKG. “Newer PVP formats like PrizePicks Arena put customer selections into a tournament structure, with top scorers getting paid out.”
The research firm points out that PrizePicks currently offers player vs. house DFS in just three states — North Carolina, Texas, and Virginia.
PrizePicks Moving to Seller From Buyer?
PrizePicks says it’s the largest DFS company in North America, and that assertion could be credible because the operator and some of its rivals found avenues for gaining business from DraftKings and FanDuel — the forefathers of the DFS industry.
An interesting point about the rumor floated by EKG is that PrizePicks is barely more than a year removed from hiring investment bank Moelis & Co. to evaluate acquisitions for the company, indicating it’s potentially moved from buyer to seller in short order.
The research firm didn’t mention specific companies that could be interested in acquiring PrizePicks, but it did use the term “online gambling operators” to describe potential suitors, adding that “listed firms” are looking for growth.
That’s sensible because sports betting isn’t legal in big states such as California, Texas, and Georgia, and Florida has a sports betting monopoly controlled by Hard Rock. That could signal interest in PrizePicks, assuming the company maintains its access to the most attractive states.
Underdog Valuation Could Be Template for PrizePicks
PrizePicks rival Underdog Fantasy was valued at $1.23 billion following a $70 million March funding round, and that could be instructive for PrizePicks and its prospective suitors.
EKG said the valuation on Underdog could put the multiple on PrizePicks at $2 billion — a price point that would likely be palatable to an array of suitors.
Investors in Atlanta-based PrizePicks include poker legend Phil Hellmuth, former NBA player Andrew Bogut, and former Atlanta Braves star Andruw Jones. Professional investors in the firm include Parlay Capital Holdings and Phoenix Capital Ventures.
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