PrizePicks has been granted an interactive fantasy sports operating license in New York, marking a major regulatory comeback for the Atlanta-based operator and one of the most closely watched developments in the U.S. fantasy sports market this year. The New York State Gaming Commission (NYSGC) approved the company’s application, clearing the way for PrizePicks’ peer-to-peer fantasy sports platform to launch in the state within weeks, according to the official press release.
PrizePicks Returns to New York Under New Peer-to-Peer Model
The approval comes after months of collaboration between PrizePicks and state regulators to ensure its contests comply with New York’s strict fantasy sports requirements. The new peer-to-peer model replaces the company’s former “versus the house” format, which had faced scrutiny for blurring the line between fantasy sports and sports betting.
“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.” ,” said Mike Ybarra, CEO of PrizePicks.
PrizePicks’ new model allows users to compete directly against one another rather than fixed odds, aligning with state law classifying daily fantasy sports (DFS) as games of skill rather than games of chance. New York now becomes the 16th jurisdiction to formally recognize PrizePicks’ peer-to-peer fantasy contests as legal under local fantasy sports regulations.
Legal and Regulatory Context
PrizePicks’ return follows a turbulent two-year legal history in New York. In February 2024, the company agreed to a $15 million settlement with the New York State Gaming Commission after it was found to have offered fantasy contests without proper authorization dating back to 2019. PrizePicks maintained that its pick’em contests were lawful under state fantasy sports rules but chose to settle and pause its operations while working toward full compliance.
Officials and Industry Response
Jason Barclay, Head of Public Policy and Chief Legal Officer at PrizePicks, credited the NYSGC for “recognition of our peer-to-peer offering as a fantasy sports contest,” saying the company “worked diligently to design a game that meets the Commission’s rigorous standards.”
State Senator Joseph Addabbo, a long-time advocate for responsible gaming expansion, said the decision “makes a clear statement that New York will continue to embrace innovative Daily Fantasy Sports (DFS) games that provide safe, skill-based contests.”
Industry analysts see this as a turning point for fantasy sports regulation, signaling that New York, the largest U.S. DFS market by population, may become a model for peer-to-peer fantasy compliance nationwide.
PrizePicks is expected to launch its platform in New York in the coming weeks, ahead of peak NFL and NBA betting seasons.
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- Source: https://sportshandle.com/prizepicks-secures-new-york-fantasy-sports-license/