PrizePicks granted license in New York following US$15 million settlement
Daily fantasy sports operator PrizePicks has been granted an interactive fantasy sports operating license by the New York State Gaming Commission.
New York will become PrizePick’s forty-fifth jurisdiction, with the operator saying that it will launch its peer-to-peer contests in the coming weeks.
The relaunch in the state comes after the fantasy sports operator had to cease operations, having agreed to pay the New York Gaming Commission US$15 million after being caught operating its for-money contests without the required license.
PrizePicks has since worked closely with state gaming regulators to ensure the requirements needed to operate in the state were met.
PrizePicks’ Head of Public Policy and Chief Legal Officer Jason Barclay said, “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.”
In a statement, New York State Sen. Joseph Addabbo added, “By issuing this license, the Gaming Commission is making a clear statement that our state will continue to embrace innovative daily fantasy sports games that provide New Yorkers with safe, skill-based contests they can enjoy with friends, family, and fellow sports fans.”
The launch in New York comes after PrizePicks was granted approval by the National Futures Association in September to enter the predictions market.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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The Backstory
Regulatory reset clears the way in New York
PrizePicks’ return to New York did not happen in a vacuum. The daily fantasy sports operator halted its paid contests in the state after agreeing to a $15 million settlement with the New York State Gaming Commission for operating without a required license. The company then worked through a months-long remediation to align its product with state requirements. That culminated in the commission granting PrizePicks an interactive fantasy sports operating license, positioned as the company’s forty-fifth jurisdiction, with a relaunch of peer-to-peer contests expected within weeks. The sequence underscores how enforcement and compliance can be two sides of the same market-entry coin: a costly penalty that ultimately paved a compliant path back into one of the country’s most scrutinized gaming markets. The company framed the approval as recognition of its peer-to-peer fantasy format and an endorsement of stricter consumer safeguards. For New York, the license signals a willingness to calibrate rules for new formats while keeping a tight regulatory perimeter. The full arc — from cessation to settlement to licensure — is detailed in PrizePicks granted license in New York following $15 million settlement.
The timing also matters beyond state lines. New York remains a bellwether for other jurisdictions that watch its enforcement posture. A green light there can smooth conversations elsewhere, particularly as fantasy and sports wagering products continue to converge in look, feel and consumer understanding. That convergence is shaping how companies describe their offerings to regulators and how regulators draw boundaries between fantasy contests and betting.
From fantasy to futures: a bet on prediction markets
Parallel to the New York effort, PrizePicks moved to diversify into regulated financial-market style products. Through a subsidiary, the company secured approval from the National Futures Association to operate as a futures commission merchant, opening the door to handle customer orders for futures listed on Commodity Futures Trading Commission–regulated exchanges. The distinction is more than semantic. It positions the company to build “prediction” experiences under securities and commodities rules rather than gaming statutes, potentially widening its product set and distribution partners. In PrizePicks gains National Futures Association approval, the company highlighted ongoing dialogue with regulators and floated potential partnerships with platforms such as Robinhood or Kalshi to stand up compliant prediction markets.
The NFA decision landed on the same day that lottery operator Allwyn agreed to acquire a 62.3% stake in PrizePicks for $1.6 billion, valuing the fantasy firm at $2.5 billion, according to the company’s account. The juxtaposition — regulatory clearance and a controlling-stake deal — telegraphs investor confidence that PrizePicks can scale across multiple regulatory regimes. It also hints at a future in which gaming-adjacent prediction products and fantasy contests sit alongside each other, with compliance architectures calibrated to the applicable rulebook.
Licenses stack up across U.S. jurisdictions
The New York approval extends a licensing streak that has become central to the company’s growth playbook. PrizePicks recently secured approvals in Puerto Rico and Maine, becoming the first operator licensed in Puerto Rico and launching its Arena fantasy platform in Maine. When Puerto Rico goes live, the company expects to be active in 47 U.S. jurisdictions. The emphasis on regulated expansion — and on the Arena product as an engagement engine — reflects a broader pivot toward operating only where licensing is clear and oversight is robust. More on the latest approvals and launch plans is in PrizePicks secures licenses in Puerto Rico and Maine.
Regulatory credibility has also become part of the brand. PrizePicks points to responsible gaming investments, including receiving iCAP accreditation from the National Council on Problem Gambling in 2025, and has paired compliance with marketing, naming Klutch Sports as a brand ambassador to extend reach among younger sports fans. The company’s message to regulators and partners is straightforward: incremental licensing, measurable consumer protections and controlled expansion into adjacent products.
Marketing muscle meets ballpark visibility
To convert regulatory momentum into user growth, PrizePicks has leaned on team partnerships and in-venue visibility. The company was named the official daily fantasy sports partner of the Houston Astros under a multiyear deal that includes online promotions, signage at Daikin Park and radio integrations. The program features a Monday home-game promotion offering fans a chance to win a free PrizePicks lineup and tickets. The activation underscores how fantasy operators are using Major League Baseball partnerships to anchor regional marketing in states where they are licensed. Details are in PrizePicks announced as Houston Astros official fantasy sports partner.
These partnerships are not just advertising buys; they are a bet that stadium and broadcast touchpoints can drive app downloads at lower costs than pure digital marketing while reinforcing a responsible, team-aligned image. That brand positioning supports conversations with regulators and complements the company’s push into new jurisdictions and product categories.
A stricter map for games and predictions
PrizePicks’ trajectory sits within a wider recalibration of how and where games can operate. Regulators are tightening oversight, while suppliers and operators thread the needle between innovation and compliance. Beyond fantasy, gaming content studios are also navigating licensing pathways. In Ontario, for example, game developer Gaming Corps secured approval from the Alcohol and Gaming Commission of Ontario and is rolling out content such as Hoop Champion and Shootout Champion in a market that iGaming Ontario says grew 32% year over year to $3.2 billion in gross revenue in its third year. The approval context is covered in Gaming Corps granted Ontario gaming license.
The pattern is global. In the United Arab Emirates, the General Commercial Gaming Regulatory Authority granted Fennica Gaming a gaming-related vendor license, authorizing the supplier to offer games-as-a-service to licensed operators within the country’s emerging regulated framework. That development, outlined in Fennica Gaming granted UAE license, shows how new jurisdictions are building regimes that emphasize vendor vetting and controlled market access — themes that echo in U.S. statehouses and at federal financial regulators alike.
For operators like PrizePicks, the throughline is clear: licenses open doors, responsible gaming credentials steady those doors, and partnerships help draw in users once the market is unlocked. The New York license, the NFA approval and the Puerto Rico and Maine authorizations together form a blueprint for expansion that is iterative rather than explosive. The stakes are significant. Missteps can bring eight-figure costs and shutdowns; disciplined compliance can attract strategic investors and accelerate entry into high-value markets.
As regulators refine definitions around fantasy contests, sports betting and prediction markets, firms will likely architect modular products that can be toggled based on jurisdiction. PrizePicks’ recent moves — from settling and securing a license in New York to pursuing an NFA-regulated prediction business and tying up with pro teams — suggest it is building exactly that kind of adaptable platform. Whether that approach can sustain growth amid intensifying competition from DraftKings, Fanatics and others will hinge on execution and the speed at which regulatory approvals translate into engaged, retained users.
