Get the word out that PrizePicks has returned to New York.
After nearly two years, a $15 million settlement, and likely a lot of legal bills, the corporation is now coming out of the shadows and making a comeback to the fourth-most populous state in the country.
The business declared on Wednesday that it will soon debut its peer-to-peer product after receiving an operating license for interactive fantasy sports from the New York State Gaming Commission.
In a statement, PrizePicks CEO Mike Ybarra said, “We know that some of the nation’s most ardent sports fans will be thrilled to see PrizePicks return to New York.” “We’re excited to provide an amazing entertainment experience that improves their engagement both on and off game day.”
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Less than a year has passed since PrizePicks agreed to pay the New York State Gaming Commission around $15 million for operating without a license. Despite never being granted a temporary authorization under Article 14 of the Racing Law, PrizePicks operated paid fantasy competitions in the state from June 2019 through December 2023, following a settlement agreement that ESPN was able to achieve.
The settlement sum was determined by adding fines for the number of days contests were offered to the company’s revenue in New York during that time frame. At the time, a representative for the Gaming Commission told ESPN that “the settlement speaks for itself.”
PrizePicks claimed in the settlement that it operated “in a good-faith belief” that it could do so legally, and the agreement made it clear that the infraction would not prevent the business from submitting an application for a license in the future.
Resuming operations
That’s the end of that path. In order to create a new peer-to-peer fantasy game that conforms with the state’s stricter 2023 regulations, which forbid contests that imitate proposition betting, PrizePicks collaborated extensively with New York regulators after the 2024 settlement.
In the statement, Jason Barclay, chief legal officer and head of public policy at PrizePicks, stated, “We would like to express our gratitude to the New York State Gaming Commission for their cooperation and acknowledgment of our peer-to-peer offering as a fantasy sports contest.” “We put a lot of effort into creating a game that satisfies the Commission’s exacting requirements, and New York’s ruling supports the notion that fantasy sports innovation can flourish in an environment with clear regulations.”
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