Not only is PrizePicks planning to stop offering real-money contests in New York, but the daily fantasy operator also plans to pay the state's gaming commission a $15 million fine for operating without a license, according to a report from ESPN.'
PrizePicks has illegally offered fantasy sports games in the state dating back to 2019, the report says. PrizePicks was under the impression that its fantasy offerings were in compliance with state law, but the gaming commission and operator reached a settlement agreement regarding the latter entity's violations.'
“Our team is pleased to have reached a resolution with the Gaming Commission and we look forward to continuing our work with the State to modernize New York’s daily fantasy sports laws,” a PrizePicks spokesperson told ESPN in a statement. “As safer, skill-based DFS contests like ours rise in popularity, we will work constructively with policymakers on thoughtful legislation that allows New Yorkers to play the contests they love, ensure strong consumer safeguards, and generates tax revenue for the state.”
Daily fantasy sports apps like PrizePicks have faced a series of challenges over the last year. In late 2023, New York was among the states to ban pick'em style fantasy games offered by companies like PrizePicks and Underdog Sports. Several state gambling regulators considered the offerings too similar to sports betting.'