In response to mounting legal uncertainty, PrizePicks has switched its daily fantasy sports (DFS) offering in California from the traditional against-the-house Pick’em format to the peer-to-peer Arena model. This shift comes just ahead of an anticipated opinion from California Attorney General Rob Bonta, which could rule daily fantasy sports illegal for real money in the state.

The original Pick’em game allowed players to select between two and six player performance projections and compete directly against the house. However, starting June 30, 2025, only the Arena format is available to California users. Arena enables players to compete against one another in a peer-to-peer setting, a structure seen as more legally defensible as the state braces for potential changes to its DFS regulations.

Elisa Richardson, Vice President of Communications for PrizePicks, expressed the company’s excitement about this shift: “We’re excited to now offer Arena to players in California. Arena has been incredibly well received by our community, and we’ve seen continued growth as more players engage with this peer-to-peer format.”

Underdog Sports Files Lawsuit Against California Attorney General’s Office

As California edges closer to an official opinion on DFS, PrizePicks faces mounting legal pressure. Underdog Sports, a competitor to PrizePicks, has filed a lawsuit in California Superior Court in an effort to block Attorney General Bonta from issuing the anticipated opinion. Underdog argues that Bonta’s office does not have the authority to issue a ruling on DFS and challenges whether the opinion process is the appropriate venue for making such a determination.

“Any potential opinion is flawed because it has to rely on factual determinations the opinion process cannot and should not resolve,” stated Underdog’s legal team. This lawsuit could delay Bonta’s expected opinion, which was believed to be released around July 3, 2025.

Despite these legal challenges, sources confirm that Bonta’s opinion is likely to have broad consequences, possibly rendering all DFS formats — including both traditional against-the-house games and peer-to-peer contests like Arena — illegal in California.

California’s DFS Market Faces Major Legal and Financial Implications

California is home to the largest DFS market in the United States, and the outcome of this legal battle could have significant financial repercussions for operators like PrizePicks. The state’s sizable sports fan base has helped PrizePicks establish partnerships with Major League Baseball teams such as the Los Angeles Dodgers, San Francisco Giants, and San Diego Padres. However, with DFS facing increased scrutiny, the company’s future in the state is uncertain.

The potential ban on DFS in California would not only impact PrizePicks but also Underdog and other DFS platforms. Reports show that Underdog derives roughly 10% of its revenue from California players. If Bonta’s opinion leads to a ban, PrizePicks could lose a substantial market share in the state. The transition to Arena appears to be a preemptive move to align the company with a more defensible legal structure.

Despite the legal challenges, PrizePicks has adapted quickly, adjusting its offering to meet the shifting regulatory landscape. The peer-to-peer Arena model, which has become increasingly popular among players, could be the company’s way of staying compliant with California’s legal framework as the state’s DFS future hangs in the balance.