PrizePicks has officially secured an interactive fantasy sports operating license from the New York State Gaming Commission (NYSGC), allowing the Atlanta-based operator to reenter one of the nation’s most competitive gaming markets. The approval comes nearly two years after a legal settlement with the NYSGC that saw the company pay $15 million for operating without a wagering license between 2019 and 2023.

From Settlement to Compliance: A Shift to Peer-to-Peer

“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,” said CEO Mike Ybarra. “We’re thrilled to offer a great entertainment experience that elevates how they engage on game day and beyond.”

The company plans to launch its peer-to-peer (P2P) fantasy product in the coming weeks, marking a full-scale return following its prior exit from the state. New York now becomes the 16th jurisdiction to formally authorize PrizePicks’ contests as legal fantasy sports games of skill.

PrizePicks’ path back to the Empire State follows major operational changes implemented throughout 2024. After agreeing to the multimillion-dollar settlement, the company overhauled its model from “against-the-house” daily fantasy contests—previously considered too close to prop betting—toward a fully peer-to-peer framework designed to meet regulatory standards.

PrizePicks Arena, introduced in 2024, allows players to compete directly against one another rather than the operator, with outcomes based on lineup scores within private or public contests. The company confirmed that as of August 22, 2025, its entire U.S. operation has transitioned to this compliant P2P model.

Jason Barclay, PrizePicks’ Head of Public Policy and Chief Legal Officer, said in the company’s press release, reported by PR Newswire: “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. 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.”

PrizePicks’ renewed license represents the culmination of a cooperative effort with regulators to adapt to evolving fantasy sports laws. The NYSGC’s October 2023 amendments prohibited contests that closely mimic proposition wagers, prompting operators like PrizePicks to refine their offerings.

Underdog and Allwyn Context: A Competitive Fantasy Market

PrizePicks’ return aligns with broader changes in New York’s daily fantasy landscape. Rival operator Underdog reentered the state in May 2025 after previously halting operations when its contests were deemed non-compliant under a temporary license. Following a settlement that included an $18 million payment to regulators, Underdog relaunched its draft-style games—illustrating the increasingly structured path fantasy operators must follow in New York.

Beyond its U.S. expansion, PrizePicks has grown under new ownership. The operator joined the Allwyn group in September 2025 through a $1.6 billion acquisition, integrating into one of the world’s largest gaming conglomerates. This move has bolstered its resources and regulatory standing, positioning it to compete more directly with major industry players such as DraftKings and FanDuel.

As PrizePicks prepares its relaunch, the company maintains that compliance and responsible gaming remain central to its operations. It was recognized by the National Council on Problem Gambling (NCPG) in 2025 as the first fantasy sports operator to earn iCAP accreditation for responsible gaming initiatives.