PrizePicks has formally reentered the New York market, restoring access for residents to its fantasy sports contests after a multi-year absence tied to regulatory scrutiny. The Atlanta-based company confirmed that players statewide can once again participate in its games, now offered exclusively through a peer-to-peer format that aligns with New York’s interactive fantasy sports framework.

The relaunch follows the company’s receipt of an interactive fantasy sports license from the New York State Gaming Commission (NYSGC) in October. With that approval, New York became the 16th state to classify PrizePicks’ contests as games of skill under its existing rules. Players can now compete in leaderboard-based fantasy contests rather than against the operator itself, a shift that reflects both regulatory requirements and a broader change in the company’s business model.

“Returning to New York is a testament to the state’s commitment to embracing innovative gaming products,” said PrizePicks SVP of Government Affairs Nick Zabriskie. “Players deserve a competitive landscape, allowing them to engage with their favorite contests in a regulated environment. We’re excited to bring our games back to sports fans who have eagerly been awaiting our return and to extend our footprint in the Empire State.”

Regulatory path back to the Empire State

PrizePicks’ return comes after a turbulent period with New York regulators. In 2023, the NYSGC issued a cease-and-desist letter, prompting the operator to exit the state. The commission later determined that PrizePicks had violated state law between June 2019 and December 2023 by offering contests it viewed as equivalent to sports wagering without proper authorization.

To resolve the dispute, PrizePicks reached a settlement with the state totaling approximately $15 million, reported as $14.97 million, calculated based on revenue generated from the prohibited contests. That agreement led to a revised operational strategy and ultimately paved the way for licensure. With the license in hand, the company relaunched in New York using a peer-to-peer model distinct from its earlier against-the-house offerings.

PrizePicks CEO Mike Ybarra highlighted the importance of the market, 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.” He added, “We’re thrilled to offer a great entertainment experience that elevates how they engage on game day and beyond.”

How the peer-to-peer product works

In New York, PrizePicks now operates through lineup-versus-lineup contests in which users compete directly against one another for real-money payouts. Players select between two and six athletes across available sports and choose whether each athlete will record more or less than a listed statistical projection. Lineups are then ranked on a shared leaderboard.

Payouts depend on where a lineup finishes relative to others. Higher leaderboard placement results in larger prizes, while a minimum guarantee structure allows qualifying lineups to earn payouts even in the event of ties. Each lineup receives either the leaderboard prize or the minimum guarantee, whichever is greater, but winnings do not stack.

The company has emphasized that all contests are peer-to-peer, meaning players are not competing against the house. This structure mirrors pick’em-style games that previously operated in New York, while remaining compliant with rules that prohibit fantasy contests resembling prop betting.

Broader industry and company developments

New York regulators’ approval of peer-to-peer fantasy contests has drawn attention across the daily fantasy sports sector, particularly in states that previously issued cease-and-desist letters to operators. As scrutiny shifts, industry observers note that regulatory focus may increasingly turn toward prediction markets, including platforms such as Kalshi and Polymarket, which have faced their own legal challenges.

PrizePicks itself has undergone significant changes alongside its regulatory reset. The company transitioned fully to peer-to-peer offerings nationwide last year, in part to address varying state restrictions. It also introduced its PrizePicks Arena product in early 2024 to support that approach.

Ownership has also shifted. European lottery company Allwyn recently completed the acquisition of a 62.3% stake in PrizePicks in a deal valued at about $1.5 billion, with provisions for additional payments tied to performance targets. Separately, PrizePicks expanded into event contract trading through a subsidiary registered with the Commodity Futures Trading Commission and announced partnerships allowing access to contracts from Kalshi and Polymarket.

As part of its ongoing operations, PrizePicks has pointed to responsible gaming initiatives as a priority. In 2025, the company received iCAP accreditation from the National Council on Problem Gambling, becoming the first fantasy sports operator to earn that certification.