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After a year-long absence, PrizePicks is making its comeback in New York with its fantasy sports offering. The company successfully obtained a gaming license from the New York Gaming Commission (NYSGC), which had previously removed it from the state for operating without proper authorization.
This new development comes nearly two years after PrizePicks reached a settlement with the NYSGC. The new license allows PrizePicks to launch its peer-to-peer fantasy sports product in New York in the coming weeks.
CEO Mike Ybarra commented on the news, stating,
“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.”
$15 million NYSGC settlement
The return also sees PrizePicks agree to a $15 million settlement with the NYSGC. This agreement follows an investigation that revealed the company had been operating in the state without a proper wagering license from June 2019 to December 2023.
The settlement amount reflects the revenue PrizePicks generated from contests that violated state law during that period. Additionally, the commission had increased scrutiny on the company after implementing new fantasy regulations that specifically prohibit games resembling prop wagering.
Puerto Rico launch and major 2025 changes for Prize Picks
PrizePicks is shifting gears as it prepares to launch in Puerto Rico while also implementing significant changes across its US operations.
In August, the company decided to discontinue its against-the-house daily fantasy sports (DFS) product, focusing exclusively on its peer-to-peer (P2P) Arena offering. This transition took effect on August 22 and applies to all US markets where PrizePicks holds a gaming license.
“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,” said PrizePicks Chief Legal Officer Jason Barclay. “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.”
The P2P Arena, introduced in 2024, allows users to compete against each other by paying entry fees for the chance to win prizes based on their group’s lineup scores. Currently, PrizePicks operates in over 40 states and Washington, D.C., as well as across most Canadian provinces, except Ontario.
Underdog also makes return
Underdog is also making a comeback in New York after pulling its fantasy operations less than six months ago. In May, the company launched its draft-style daily fantasy sports (DFS) games in the Empire State following a settlement with the NYSGC.
This move comes after the commission ruled that Underdog’s products were not clearly covered under its temporary license, which the company had secured when it acquired Synkt Games in 2022.
To resolve the issue, Underdog agreed to pay $18 million to the NYSGC and has since applied for a permanent license. Now, with its draft-style games included in the terms of the temporary license, Underdog can operate legally in New York once again.
Source: SBC America
