PrizePicks Gets NFA Registration to Enter Prediction Markets

Daily fantasy sports operator PrizePicks is preparing a new chapter after securing approval to run prediction markets under U.S. financial regulations.

Good to know

• PrizePicks’ subsidiary, Performance Predictions II, LLC, is now registered as a Futures Commission Merchant with the NFA.
• The approval means PrizePicks can work with the CFTC, the same regulator that oversees platforms like Kalshi and Robinhood Markets.
• The company has not yet shared a launch date or product list, but executives promise more details soon.

PrizePicks CEO Mike Ybarra called the registration “the honor of being the first sports entertainment platform to receive a FCM registration from the NFA,” stressing that it reflects the company’s strong compliance framework. He credited Acting Chair Caroline Pham for setting “a thoughtful tone for the agency and our industry.”

The announcement signals more than just regulatory clearance. PrizePicks confirmed it will coordinate with both the CFTC and NFA to introduce “new, consumer-friendly solutions” while committing to responsible play and secure market operations. Jason Barclay, chief legal officer and head of public policy, described the approval as a milestone:

“We are grateful to the NFA for its thoughtful process and diligent work on our application.”

What Players Can Expect

For now, PrizePicks remains a daily fantasy operator. Its platform runs peer-to-peer contests in 45 states where users select player stats and prop outcomes. Unlike a sportsbook, no bets are placed on game winners.

Prediction markets, however, broaden the menu. Once PrizePicks rolls them out, customers could participate in contracts tied to match results or other real-world events, similar to markets offered by Kalshi. That shift brings the DFS brand closer to sportsbook-like experiences while staying within a federal regulatory framework.

The timing is important. Kalshi has already expanded its NFL and college football offerings by adding spreads and totals, while Robinhood continues to explore prediction-style products for retail traders. If PrizePicks follows through, its existing fantasy sports user base could give it a strong starting point in an industry that now covers all 50 states.

The decision also underlines how regulators like the CFTC are opening up space for innovation in event-based trading, while balancing consumer protections. PrizePicks executives have framed their entry as both a compliance milestone and a chance to evolve entertainment for their players.