Daily fantasy operator PrizePicks told EmpireStakes.com that it is working with the New York State Gaming Commission (NYSGC) to get a new version of its pickā em-style contest approved in the state. That comes a day after the Georgia-based company agreed to pay nearly $15 million after the state regulator found it operated illegally in the state for almost five years.
The NYSGC keeps an eye on New York sports betting and in-state casinos as well. There are no legal New York online casinos.
According to the settlement agreement, the commission said PrizePicks violated rules requiring fantasy sports operators that started offering contests in the state after Nov. 10, 2015, to register with and have contests reviewed and approved by the state body.
The agreement calls on PrizePicks to ācease and desistā from operating its single-player contest and provide the NYSGC with evidence of abiding by it.
The settlement amount was determined after figuring out the revenue PrizePicks generated in New York between June 4, 2019, and Nov. 3, 2023, an estimate of what it made for the rest of 2023, and the length of time PrizePicks operated in the state.
Free Game Debuts in New York Thursday
PrizePicks plans to switch to its free-to-play game in New York on Thursday, a spokesperson told EmpireStakes.com.. At the same time, it is seeking a New York license for its new game, PrizePicks Arena. The contest is still pick āem-based. However, instead of it being a single-player game, contestants are pooled. They still can earn a payout if their picks are all correct, but they also will receive points for the performance of their selections.
According to the rules, the contestant with the most points within the pool of entries can win up to 10 times their entry fee, and if thereās a tie, that prize is split among all entries with the same amount of points. If a contestant qualifies for both prizes, they will receive the higher of the two payouts.
The peer-to-peer real-money game launched in Alabama, Tennessee, West Virginia and Wyoming late last month.
āOur 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 Yorkās daily fantasy sports laws,ā the spokesperson said. āAs 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, ensures strong consumer safeguards, and generates tax revenue for the state.ā
New York Changes Fantasy Rules
Last October, the NYSGC voted to amend its fantasy sports rules. The changes included a ban on so-called proposition betting contests, where contestants select athletes for their entry and determine if those athletes will or wonāt hit a certain statistical threshold in a game or event. Critics of the fantasy pick āem games say those contests are no different from sportsbooks offering player prop parlays, except that fantasy operators offering those games do not pay the same taxes and fees as licensed sports betting operators.
But even the new rule could be open to interpretation.
The rule, in part, states: āContests in which a contestant chooses whether an individual athlete or a single team will surpass an identified statistical achievement would be prohibited.ā However, pick āem contests offered by fantasy providers require contestants to select multiple athletes for their entry, not just one athlete or team.
There are fantasy operators licensed in New York with pick āem contests among their options. That includes Brooklyn-based Underdog Sports, which also offers fantasy draft contests.
A spokesperson for Underdog told EmpireStakes.com that the company, like all other approved fantasy operators in New York, has a temporary license. Underdog communicates regularly with the NYSGC and plans to seek a permanent license when that becomes available.
Follow NYCasinos.com for any developments and for information for the future on New York casino bonuses.
