PrizePicks Settles with NY Gaming Commission
Daily fantasy sports operator PrizePicks has agreed to halt its paid contests in New York and pay nearly $15 million to the state’s gaming commission for unauthorized operations. This decision follows a settlement agreement with the New York State Gaming Commission (NYSGC).
The settlement amount, determined as the amount of revenue generated from New York contestants between June 4, 2019, and December 19, 2023, also accounts for penalties over the duration of the unauthorized contests.
The NYSGC’s documents reveal that PrizePicks has been operating without the required authorization under New York betting law and lacks a temporary permit from the Commission for Interactive Fantasy Sports (IFS) in New York. Despite this, a spokesperson for PrizePicks stated that the company had believed in good faith it was allowed to operate within the state.
Note!
Pick’em daily fantasy sports involve predicting the statistical performances of players in a parlay format, while sportsbooks involve betting on the outcomes of real-life sports events
The resolution of this issue does not prevent PrizePicks from applying for a new license in the future. The company has expressed intentions to pursue a license for its peer-to-peer product, PrizePicks Arena, in New York.
PrizePicks emphasized its commitment to working with state policymakers to ensure the availability of safe, skill-based DFS contests that comply with regulations, provide consumer safeguards, and generate tax revenue.
This development follows New York’s recent clarification of fantasy sports regulations, specifically disallowing contests that resemble proposition betting. PrizePicks announced its decision to pause its paid contests in New York in response to these legal adjustments, signaling a temporary cessation starting Thursday. The company operates real-money contests in 30 states and the District of Columbia.
