Start spreading the news: PrizePicks is back in New York.
It took almost two years, a $15 million settlement, and probably a lot of lawyers fees, but the company is getting off the sidelines and returning to the nation’s fourth-most populous state.
The company announced Wednesday it has been awarded an interactive fantasy sports operating license by the New York State Gaming Commission and will launch its peer-to-peer product shortly.
“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,” Mike Ybarra, CEO of PrizePicks, said in a statement. “We’re thrilled to offer a great entertainment experience that elevates how they engage on game day and beyond.”
PrizePicks’ return comes less than a year after the company agreed to pay nearly $15 million to the New York State Gaming Commission for operating without a license. According to a stipulation of settlement obtained by ESPN, PrizePicks ran paid fantasy contests in the state from June 2019 through December 2023 despite never receiving a temporary permit under Article 14 of the Racing Law.
The settlement amount was calculated based on the company’s New York revenue during that period, plus penalties for the number of days contests were offered. A Gaming Commission spokesperson told ESPN at the time that “the settlement speaks for itself.”
In the settlement, PrizePicks said it operated “in a good-faith belief” that it could legally do so — and the agreement explicitly stated the violation wouldn’t disqualify the company from applying for a future license.
Back in business
That path is now complete. Following the 2024 settlement, PrizePicks worked closely with New York regulators to design a new peer-to-peer fantasy product that complies with the state’s tightened 2023 rules, which ban contests that mimic proposition betting.
“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,” Jason Barclay, PrizePicks’ head of public policy and chief legal officer, said in the statement. “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.”
New York becomes the 16th jurisdiction to formally approve PrizePicks’ contests as games of skill under fantasy sports law.
