Fantasy sports company PrizePicks is returning to New York after getting a new gaming licence from the New York Gaming Commission (NYGC). The company was banned over a year ago for operating without a licence but has since fixed its compliance issues and paid a $15 million settlement in 2024.

The comeback follows Allwyn’s $1.6 billion acquisition of PrizePicks in September. With Allwyn’s support, PrizePicks now plans to rebuild its presence and compete again in the US fantasy sports market.

A Revamped Fantasy Sports Model

Since leaving New York, PrizePicks has redesigned its fantasy sports platform. The company dropped its old against-the-house model, which was seen as too much like sports betting, and replaced it with a peer-to-peer system where players compete against each other. This change makes the game more acceptable under state gaming laws.

PrizePicks said it has worked closely with regulators across the US, including in New York, to make sure its new model follows all legal rules. The company plans to relaunch its product in New York in the next few weeks.

Jason Barclay, the company’s Head of Public Policy and Chief Legal Officer, said the team worked hard to meet the Commission’s standards. “We carefully designed a game that fits New York’s rules, showing that innovation in fantasy sports can grow within clear regulations,” he said.

Regulatory Approval Marks a New Chapter

The new licence represents a major turnaround for PrizePicks, which was once viewed as a controversial operator in the eyes of regulators. Its original removal from New York came after the state introduced stricter laws for fantasy sports in an effort to ban contests that resembled prop betting.

Now, by working closely with the NYGC and revising its product design, PrizePicks has regained the regulator’s confidence. Industry experts view this as a strong signal that the company is committed to responsible and compliant operations under its new parent company, Allwyn.

PrizePicks’ success in securing approval could also open the door for further state-level expansion. The company has recently been approved as a Futures Commission Merchant, which allows it to host exchanges for prediction contracts, a sign that it may be exploring new ways to grow its product offerings.

Competition Heats Up in the Fantasy Sports Market

With Allwyn’s backing, PrizePicks is now better positioned to compete with major US operators like DraftKings and FanDuel. Its return to New York, one of the largest fantasy sports markets in the country, could help the brand re-establish its presence and attract new players.

Industry observers are watching closely to see how PrizePicks performs in a space long dominated by established brands. For now, the company’s comeback highlights how innovation and compliance can go hand in hand in the fast-evolving world of fantasy sports.