PrizePicks has completely ditched its against-the-house daily fantasy sports (DFS) offerings, pivoting instead to a peer-to-peer model.
The format — which was previously known as PrizePicks Arena in the states where it replaced the against-the-house model — is now the only format across Canada, D.C., and the 35 states where the company operates.
“We are excited to offer players a more social and engaging DFS product that sets the standard for future innovation in the DFS industry,” a spokesperson for the company confirmed to SBC Americas.
The move is unsurprising, as the against-the-house model PrizePicks was offering was dangerously close to — and some would say no different than — typical sports betting parlays, where players could choose at least two players to hit certain statistical benchmarks in order to win money.
The refreshed format allows for basically the same gameplay, where players build lineups by selecting two to six athletes and predicting whether each will go over or under their stat projections.
The chief difference is that each lineup is then matched into a group of similar entries, where the top score wins, but there’s also a built-in payout structure that pays if your picks hit, regardless of how the group finishes. The payout depends on lineup size and whether you choose the safer Flex format or the higher-risk Power format.
PrizePicks — along with Underdog Fantasy, the other big player in the pick ‘em-style DFS format — has been changing its offerings to the peer-to-peer model at the state-by-state level as more states have sought to ban the game.
As recently as last month, PrizePicks was still going the piecemeal route, switching to the Arena format in California ahead of the legal opinion from California Attorney General Rob Bonta. Soon after the switch, Bonta’s office released his non-binding opinion, which classified all DFS as gambling and thus illegal under California law.
Predict Picks?
The pivot to full peer-to-peer comes as the company also explores the prediction market space.
The National Futures Association (NFA) lists PrizePicks’ parent entity, Performance Predictions II LLC, as a pending member, with CEO Mike Ybarra named as the registrant’s chief executive.
PrizePicks filed for membership on May 28 and has also applied for Futures Commission Merchant and Swap Firm status.
NFA registration is an early step toward Commodity Futures Trading Commission licensure to operate a regulated futures and derivatives market, and similar applications have been filed by entities linked to DraftKings, Underdog, and Fanatics Betting and Gaming.
