PrizePicks to Discontinue For-Money Contests in New York and Pay $15 Million Settlement

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 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. 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.