PrizePicks has regained approval to operate in New York, marking a pivotal comeback for the daily fantasy sports (DFS) operator more than a year after being forced to exit the state. The New York State Gaming Commission (NYSGC) has officially granted PrizePicks an interactive fantasy sports licence, paving the way for the company’s return in the coming weeks.
A Comeback After a Year-Long Absence
PrizePicks was previously ordered to cease operations in New York in February 2024 following a regulatory crackdown on DFS contests deemed too similar to prop betting. As part of a legal settlement, the operator agreed to pay nearly $15 million and suspend its paid contests while working with regulators to bring its offerings into compliance.
The company has since redesigned its product, shifting from an “against-the-house” structure to a peer-to-peer model that regulators have found more consistent with state fantasy sports statutes. The NYSGC confirmed in an October 10 letter that PrizePicks met all licensing requirements and could resume operations.
Collaboration With Regulators
PrizePicks Head of Public Policy and Chief Legal Officer Jason Barclay said:
“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.”
New York State Senator Joseph Addabbo also welcomed the decision, stating that the licence demonstrates the state’s commitment to “embracing innovative fantasy sports games that provide safe, skill-based contests for New Yorkers.”
Backed by Allwyn’s Global Reach
The re-entry into New York comes just weeks after Allwyn acquired a 62.3% stake in PrizePicks in a $1.6 billion deal, valuing the company at $2.5 billion. As part of one of the world’s largest gambling groups, PrizePicks gains significant financial and strategic backing for its next phase of expansion.
Industry analysts see this as a strong signal of confidence from regulators, and a potential shift in the competitive landscape long dominated by DraftKings and FanDuel.
New Model, New Opportunities
PrizePicks’ return comes with a renewed focus on compliance and product innovation. The company has been actively working with state regulators across multiple jurisdictions to refine its model, emphasizing peer-to-peer gameplay and transparent scoring systems.
Beyond fantasy sports, PrizePicks has also gained approval as a Futures Commission Merchant, enabling it to potentially host the exchange of prediction contracts, a move that could redefine the intersection between fantasy contests and prediction markets.
Operating in more than 45 jurisdictions, PrizePicks now aims to leverage its compliance-driven approach and Allwyn’s global infrastructure to re-establish itself as a major player in the evolving U.S. fantasy sports space.
Sources: Gambling Insider, ESPN
