PrizePicks enters prediction markets: What it means for bettors

The daily fantasy sports giant PrizePicks just made a move that could reshape the future of betting in America. After securing a Futures Commission Merchant (FCM) license from the National Futures Association (NFA), PrizePicks has become the first sports entertainment operator to gain approval for prediction markets in the US.

This is a big moment for sports bettors. Until now, prediction markets have largely been dominated by niche platforms like Kalshi and Polymarket, which specialize in contracts tied to future events. With PrizePicks entering the arena, bettors could soon have access to new ways of wagering, alongside familiar daily fantasy formats and pick ’em contests. The prediction market sector is projected to hit $95 billion by 2035, and PrizePicks wants a major slice of that pie.

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The license also coincides with another major development: European lottery powerhouse Allwyn International has acquired a 62.3% stake in PrizePicks for $1.6 billion, marking its expansion into the U.S. betting market. For bettors, these moves signal not just growth, but also increased competition that could mean more innovative betting products, sharper odds, and better consumer protections.

What the FCM license for PrizePicks Prediction means for bettors

The FCM license gives PrizePicks the ability to list contracts from licensed prediction markets by working with firms that hold Designated Contract Market (DCM) licenses. In practical terms, this means PrizePicks won’t have to build its own prediction market infrastructure but can act as a broker for markets created by existing operators.

For example, Robinhood has been able to offer Kalshi prediction markets to users because its derivatives arm holds the same FCM license. PrizePicks could follow a similar path, integrating prediction market offerings alongside its fantasy sports games.

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With sportsbooks like FanDuel and DraftKings circling prediction markets but not yet fully committed, PrizePicks is positioning itself as an early mover with real regulatory credibility.

Allwyn’s US expansion

The timing of Allwyn International’s $1.6 billion deal for a majority stake in PrizePicks couldn’t be more strategic. Already the operator of the UK National Lottery and Illinois Lottery, Allwyn gains a fast track into the U.S. sports entertainment and gambling industry.

“Allwyn sees this as a unique opportunity to enter the strategically important U.S. market, expanding its business beyond lotteries,” the company said in a release. For sports bettors, this signals greater corporate investment in alternative forms of wagering beyond traditional sportsbooks.

What PrizePicks already offers

PrizePicks operates in 35 states and Washington, D.C., with its signature “pick ’em” contests. Unlike traditional DFS games that require drafting teams, bettors simply decide whether a player will go over or under a specific stat. For example, you might wager on Patrick Mahomes throwing more than 285 passing yards in a game, combined with a parlay of other athletes’ performances.

Now, with the FCM license, PrizePicks has the chance to expand into prediction markets—giving bettors not just player-based picks, but also event-driven contracts on sports, politics, and beyond.

Industry impact

Prediction markets have been heating up, with Kalshi recently reporting $1 billion in monthly trading volume and surpassing Polymarket in global share. With PrizePicks entering the fray, the sector could see a wave of mainstream adoption.

Sportsbooks and prediction market firms are all racing to secure approval from the Commodity Futures Trading Commission (CFTC), and PrizePicks has established itself as the first big DFS operator to cross that regulatory finish line.

For bettors, this means more choice, more competition, and potentially sharper markets in the years ahead.

FAQs

1. What is PrizePicks’ new license and why does it matter?
PrizePicks secured an FCM license from the NFA, making it the first sports entertainment operator approved to act as a broker for prediction markets in the U.S. This could allow PrizePicks users to access new betting opportunities beyond fantasy sports.

2. How does this affect sports bettors?
Bettors could soon have access to prediction markets—contracts tied to future events—through PrizePicks’ platform, in addition to its usual pick ’em contests.

3. How big could prediction markets become?
Analysts estimate the sector could reach $95 billion in market value by 2035, with companies like Kalshi already hitting $1 billion in monthly trading volume.

4. What role does Allwyn play in this expansion?
Allwyn International, a global lottery operator, acquired a majority stake in PrizePicks for $1.6 billion, signaling serious investment into U.S. betting and gaming beyond lotteries.

5. Are other sportsbooks moving into prediction markets?
FanDuel has already explored the space, while DraftKings is rumored to be interested. PrizePicks is the first DFS operator to gain the necessary license.