PrizePicks, a prominent fantasy sports operator, has reached a settlement with the New York Gaming Commission (NYSGC) to discontinue cash contests in the state. As part of the agreement, the company will pay nearly $15 million in restitution, equivalent to the estimated income PrizePicks received from fantasy sports competitions between June 4, 2019, and December 19, 2023.
In October, New York City authorities clarified rules for fantasy sports by prohibiting contests where players could place bets. This ban significantly impacted the operations of several operators, including PrizePicks, Sleeper, and Underdog. The NYSGC determined that their activities closely resembled traditional betting, necessitating the companies to obtain the appropriate license.
The settlement does not prevent PrizePicks from continuing its operations; rather, it aims to formalize the process. The operator's management expressed its commitment to working collaboratively with government officials to address the licensing issue constructively.
