PrizePicks has officially obtained an interactive fantasy sports operating license from the New York State Gaming Commission (NYSGC), marking the Atlanta-based operator's re-entry into the key US gambling market after being fined $15 million for unlicensed operations. This return is based on PrizePicks' thoroughly reformed peer-to-peer (P2P) operating model, no longer using "betting against the bookmaker" daily fantasy contests, but instead allowing players to compete directly against each other, in compliance with New York State's regulatory new rules prohibiting prop bet-like contests. New York has become the 16th US jurisdiction to authorize PrizePicks operations, with the company planning to launch P2P products locally in the coming weeks. In 2025, PrizePicks was acquired by the Allwyn Group for $1.6 billion and certified by the National Council on Problem Gambling, becoming the first fantasy sports operator to pass the iCAP responsible gaming program.
License Approval and Market Re-entry
PrizePicks has officially obtained an interactive fantasy sports operating license from the New York State Gaming Commission, permitted to re-enter the New York market. The operator reached a legal settlement with NYSGC and was fined $15 million for unlicensed operations from 2019 to 2023.
New York is the 16th US jurisdiction to officially authorize PrizePicks contests as legal fantasy sports skill games, with the company planning to launch services in the coming weeks.
Operational Model Reform and Compliance Adjustment
To meet regulatory requirements, PrizePicks has completely reformed its operating model, shifting from "betting against the bookmaker" daily fantasy contests to a fully peer-to-peer (P2P) framework. The new model allows players to compete directly against each other, no longer battling against the operator, with match outcomes depending on the scores of lineups in private or public contests.
The company confirms that as of August 22, 2025, its entire US business has transitioned to this compliant P2P model, implemented through the PrizePicks Arena platform.
Regulatory Background and Policy Adaptation
In October 2023, the New York State Gaming Commission issued amendments prohibiting contests very similar to proposition betting, prompting operators like PrizePicks to improve services. The company's public policy director, Jason Barclay, stated that the P2P product was specifically designed to meet the commission's strict standards.
Barclay said, "New York's decision emphasizes the idea that fantasy sports innovation can thrive within a clear regulatory framework," thanking the regulatory bodies for their cooperation and recognition.
Market Competition and Industry Dynamics
PrizePicks' return corresponds with broad changes in the New York daily fantasy gambling market. Competitor Underdog was previously suspended for non-compliance and re-entered the New York market in May 2025, after paying an $18 million settlement.
This indicates that fantasy sports operators in New York must follow an increasingly structured development path, adapting to the evolving regulatory environment.
Company Development and Corporate Acquisition
In September 2025, PrizePicks joined the Allwyn Group through a $1.6 billion acquisition, integrating into one of the world's largest gambling groups. This move enhanced the company's resources and regulatory status, enabling it to compete more directly with industry giants like DraftKings and FanDuel.
The acquisition provided PrizePicks with stronger financial support and an international platform, aiding its market expansion strategy.
Responsible Gambling and Industry Certification
PrizePicks has always adhered to compliance and responsible gambling as its operational core. In 2025, the company was recognized by the National Council on Problem Gambling (NCPG), becoming the first fantasy sports operator to be certified by the iCAP responsible gambling program.
This certification demonstrates the company's commitment to player protection and responsible operations, enhancing its industry reputation.
Market Prospects and User Expectations
CEO Mike Ybarra stated, "New York is a hub for passionate sports fans, and we know they will be excited for PrizePicks' return. We are thrilled to provide an exceptional entertainment experience, enhancing their engagement on game days and beyond."
The company expects the P2P model to better meet the needs of New York players while complying with strict regulatory standards.
Operational Timeline and Implementation Plan
PrizePicks plans to officially launch its peer-to-peer fantasy sports product in New York State in the coming weeks. This marks the company's full return since its previous exit and is an important step in its national expansion strategy.
The company states it is fully prepared to ensure a smooth service launch and compliance with all regulatory requirements.
Industry Impact and Innovation Significance
PrizePicks' P2P model is seen as a significant innovation in the fantasy sports industry, providing a compliance development reference for other operators. The successful restart in the New York market may influence regulatory considerations and operator strategies in other states.
Industry observers believe this model could become an important direction for the future development of fantasy sports.
Player Experience and Service Features
The new model allows players to compete directly, without battling against the operator, providing a more transparent gaming environment. Match outcomes are entirely dependent on player lineup scores, enhancing the game's skill and fairness.
The company promises to provide an exceptional entertainment experience, enhancing player engagement and satisfaction on game days and in general.
Regulatory Cooperation and Future Development
PrizePicks states it will continue to cooperate with regulatory bodies to ensure full compliance and adapt to potential changes. The company believes a clear regulatory framework is conducive to innovation and development, committing to always prioritize compliance.
In the future, the company may continue to expand into other markets, replicating New York's successful experience and compliant model.
