PrizePicks to Pay $15m for Illegally Operating in New York

Ending real money games…for now

Daily fantasy sports (DFS) operator PrizePicks has been ordered to pay $15m to New York’s gaming commission after operating without a license.

According to a document signed by the New York State Gaming Commission (NYSGC) and PrizePicks, the operator had violated the law for years. The amount PrizePicks needs to pay is based on how much the company generated through its contests from June 4, 2019 to December 19, 2023.

operated in New York in a good-faith belief that it had the ability to do so”

On top of the monetary penalty, PrizePicks has agreed to end its real money contests. A spokesperson for the operator states that it “operated in New York in a good-faith belief that it had the ability to do so.”

However, a spokesperson for the NYSGC said that the settlement agreement “[spoke] for itself.”

PrizePicks wants changes to the law

Despite having to pay the $15m and cease its contests to New York players, PrizePicks can still apply for a license. Understandably, the company will now apply for one so that it can continue offering its product to people in the Big Apple.

will work constructively with policymakers on thoughtful legislation”

Speaking of its intentions, a spokesperson said they “…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.”

The PrizePicks comments come at a time when lawmakers are taking a hard line against DFS betting. 

In October, PrizePicks, Underdog Fantasy, and Betr had been banned in several US states. Based on a lack of consensus on whether pick’em fantasy sports are sports betting or games of skill, platforms such as DraftKings and FanDuel asked for clarity on the future of such offerings.

Previous trouble in Florida

The previous month, PrizePicks, Underdog Fantasy, and Betr received cease and desist letters from the Florida Gaming Control Commission (FGCC).

According to the FGCC, their position on DFS and pick’em games is that they are illegal. Sharing correspondence on X, CEO of Underdog Jeremy Levine wrote: “…. they are saying that all paid fantasy violates FL law in their view, including our season-long, daily drafts, and pick’em games.”

PrizePicks claims that it was a “smear campaign” and that “larger competitors” have spread misinformation to US regulators which has “driven inaccurate understandings of our contests and the laws governing them.”

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• Source: https://www.vegasslotsonline.com/news/2024/02/14/prizepicks-to-pay-15m-for-operating-without-a-license-in-new-york-end-for-money-contests/