PrizePicks, a leading daily fantasy sports operator, has agreed to discontinue its for-money contests in New York and pay nearly $15 million to the state’s gaming commission for operating without a license. The stipulation of settlement document, obtained by ESPN, revealed that the fantasy site was in violation of New York law for several years.

The settlement amount is based on the revenue PrizePicks generated through purported interactive fantasy sports contests from New York contestants between June 4, 2019, and Dec. 19, 2023, and includes a penalty based on the number of days the contests were offered.

The agreement highlighted that PrizePicks had been operating in New York without authorization to offer interactive fantasy sports, as specified in Article 14 of the Racing Law. It also noted that PrizePicks did not hold a temporary permit from the Commission to operate interactive fantasy sports in New York.

A spokesperson for the gaming commission stated that ‘the settlement speaks for itself.’

PrizePicks claimed to have operated in New York in good faith belief that it had the ability to do so, as mentioned in the settlement. However, the ruling won’t prevent PrizePicks from pursuing a new license to offer its peer-to-peer product in New York.

The company expressed its intention to work with the State to modernize New York’s daily fantasy sports laws and pursue a license to offer its contests in the state. It also emphasized the importance of strong consumer safeguards and generating tax revenue for the state.

Following changes in the gaming law, PrizePicks announced the temporary cessation of its paid contests in New York, effective Thursday. The company offers real-money contests in 30 states and the District of Columbia.