What was once a chilly start to their relationship has seemingly thawed between fantasy sports operator PrizePicks and the New York Gaming Commission, following the announcement that the company has paid its fine, made amends, and has now been awarded a license in the state to reengage its operations.
Prepare to Launch
The New York Gaming Commission (NYSGC) has announced that PrizePicks has been awarded an interactive fantasy sports operating license, and the company is slated to unveil its peer-to-peer fantasy sports competitions within the next few weeks.
New York has become the 16th market to formally recognize PrizePicks’ contests as games of skill under fantasy sports laws, and the company is now operating in 45 North American jurisdictions.
Company executives worked closely with the regulators to ensure the products they rolled out were compliant and sustainable in New York’s ferociously competitive market.
PrizePicks CEO Mike Ybarra was thrilled to be back in one of the most lucrative gaming states in the nation, saying, “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. “
Fixing the Problem
PrizePicks took a familiar tactic that many fantasy operators began taking to skirt sports betting laws. Fantasy sports operators have their own license, separate and distinct from sports betting licenses, which are often much more expensive.
To get in on a piece of the action, fantasy sports operators began adding “pick’em” contests to their fantasy menu, which are a series of over/under props that form what is essentially a parlay in the world of sports betting.
Moreover, the house was booking the action, which came too close to sports bookmaking, prompting New York gaming regulators to take action.
PrizePicks was deemed to be operating without a license from June 4, 2019, through December 19, 2023, and the company was slapped with a penalty of $14,969,688, to be paid by March 1, 2024.
But that whopping fine did not deter PrizePicks management from reaching a peaceful resolution with New York’s gaming regulators.
Within a relatively short period of time, PrizePicks has come full circle, and instead of the company booking the pick’em contests, they are now peer-to-peer contests with the house taking a small rake on setting up the contest, as they do with daily fantasy contests, and not taking a larger rake by booking the bet and acting as a bookmaker, something their license prohibits.
