Key Moments:
- PrizePicks has been granted an interactive fantasy sports license by the New York State Gaming Commission following an $15 million settlement
- After ceasing operations in February 2024, PrizePicks has introduced a peer-to-peer format designed to comply with state regulations
- New York is now the 16th jurisdiction to authorize PrizePicks’ skill-based fantasy sports contests
Regulatory Background and Settlement
PrizePicks regained its license to operate in New York after receiving regulatory approval for interactive fantasy sports contests. Consequently, the decision marks a major return to one of its most competitive markets. This milestone comes after the company reached a $15 million settlement related to revenue generated from June 2019 through December 2023, during which time its “pick’em” contests were deemed non-compliant by state authorities.
The ban on prop-style contests was enacted in October 2023. As a result, the company halted operations in February 2024. Despite the settlement, the agreement did not prevent PrizePicks from pursuing a new license under updated compliance measures.
PrizePicks will relaunch in New York after being awarded a fantasy license by state regulators: pic.twitter.com/Fn7U9D2hTT
— Geoff Zochodne (@GeoffZochodne) October 15, 2025
Strategic Shift to Peer-to-Peer Competitions
In response to regulatory scrutiny, PrizePicks collaborated closely with state regulators to revamp its offerings. The company shifted its model to focus on peer-to-peer fantasy sports. This change allows users to compete against each other rather than the house. Therefore, it meets the criteria for games of skill under state law.
Jason Barclay, Head of Public Policy and Chief Legal Officer at PrizePicks, emphasized the depth of collaboration with regulators, stating, “We want to thank the New York State Gaming Commission for their collaboration and recognition of our peer-to-peer offering as a fantasy sports contest. 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.”
Implications of License Approval
The new license affirms PrizePicks’ contests as games of skill, enabling the platform to legally resume operations in New York. The state has now joined fifteen others in formally authorizing PrizePicks’ skill-based fantasy model.
Mike Ybarra, CEO of PrizePicks, remarked on New York’s importance as a market with a passionate fan base, reflecting the significance of this regulatory recognition. “New York is home to some of the most passionate sports fans in the country, and we know they will be excited to have PrizePicks back. We’re thrilled to offer a great entertainment experience that elevates how they engage on game day and beyond.”
New York Senator Joseph Addabbo praised the Commission’s approach, stating, “By issuing this licence, the Gaming Commission is making a clear statement that our state will continue to embrace innovative Daily Fantasy Sports (DFS) games that provide New Yorkers with safe, skill-based contests they can enjoy with friends, family, and fellow sports fans,” according to a statement to ESPN.
Platform Innovations and Competitive Edge
PrizePicks distinguishes itself by offering over/under prediction contests on athlete performance across multiple sports such as NFL, NBA, MLB, and esports. The platform’s peer-to-peer framework shifts competition directly between users rather than against the house. In addition, new features—such as a social feed for lineup sharing and prediction markets—further distinguish the service. Notably, PrizePicks is the first fantasy sports platform to receive approval from the National Futures Association for prediction market capabilities.
| Key Features | Details |
|---|---|
| Game Format | Peer-to-peer, over/under athlete performance predictions |
| Sports Coverage | NFL, NBA, MLB, esports |
| Social Features | Social feed, lineup sharing |
| Regulatory Milestone | First with National Futures Association approval for prediction markets |
Market Expansion and Strategic Growth
PrizePicks operates in more than 45 jurisdictions across North America, positioning itself as a widely accessible fantasy sports platform. The company’s growth has been further strengthened through the majority acquisition by worldwide lottery operator Allwyn, valued at over $2 billion. This investment is expected to bolster regulatory compliance, fuel expansion, and solidify PrizePicks’ leadership within the daily fantasy sports ecosystem.
Opportunities for New York Sports Fans
With contests now classified as games of skill under state law, New York-based users can once again participate in regulated fantasy contests involving teams like the Knicks, Yankees, and Bills. The daily fantasy sports sector in the state is evolving towards models that emphasize social interaction, user skill, and regulatory adherence.
- Author
Daniel Williams
