PrizePicks, a prominent daily fantasy sports platform, has settled with the New York State Gaming Commission (NYSGC), agreeing to cease its cash-based competitions in New York and to pay a settlement fee close to $15 million. This amount represents the profits PrizePicks made from what were deemed interactive fantasy sports contests from June 4, 2019, to December 19, 2023, along with additional penalties.
Following New York’s October clarification of fantasy sports regulations, which now prohibit contests resembling proposition betting, companies like PrizePicks, Underdog, and Sleeper face significant operational changes. The state’s decision, affecting these daily fantasy sports operators, requires them to obtain a specific license due to the similarities between their offerings and traditional sports betting.
An ESPN investigation suggested that PrizePicks might have been operating against New York laws for years. Nonetheless, PrizePicks maintains that its operations were conducted in good faith, under the belief that they were compliant. Importantly, the settlement with NYSGC does not prevent PrizePicks from applying for and obtaining a license in the future to resume its activities in New York.
PrizePicks expressed its satisfaction with reaching an agreement with the Gaming Commission and is eager to work alongside them. The company emphasized its commitment to consumer protection and the potential for its contests to bring substantial tax revenue to New York. With an eye on the future, PrizePicks is keen on securing the necessary licensing to reintroduce its peer-to-peer product to New York residents, underscoring the growing popularity of skill-based daily fantasy sports contests.