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PrizePicks has removed the against-the-house daily fantasy sports product from its portfolio. As of August 22, 2025, the largest daily fantasy sports operator in the US will only offer peer-to-peer arena products to its users.
A company representative mentioned that the update is currently in operation in all jurisdictions where it is applicable. With this move, PrizePicks is intent on avoiding growing regulatory scrutiny surrounding the against-the-house Pick’Em.
Apart from escaping legal troubles, PrizePicks also aims to offer a more social and interactive experience for its users. This shift reflects the growing demand for head-to-head and group contests among players.
A Social, Competitive Twist on Daily Fantasy Sports
In the PrizePicks Arena gaming format, there is no house game; instead, players compete against each other. This can be either a one-on-one or a group team-up. The player or team that scores the most points is crowned the match winner.
For this style of play, players need to pay an entry fee. Each participant is then classified according to their level of experience and the total number of players per team. These groups then compete with skills to win guaranteed prizes.
The format has undergone significant changes since its release in January 2024. As of January 2025, over two million lineups have been created, featuring more than 100,000 players.
Regulatory Pressures Ignite Shift To P2P Format
The shift to the peer-to-peer arena is primarily due to the increasing scrutiny of the Pick ’em-style DFS. Some regulators, especially in California, view the Pick’em product as a form of sports betting.
California Attorney General Rob Bonta shares this view, as evident in his legal opinion, which was released on July 3, 2025. He stated that both pick-em and draft-style daily fantasy sports contests constitute sports wagering. As a result, he declared both products illegal in the state of California.
PrizePicks anticipated this response and quickly worked to avoid falling foul. Before the release of the AG’s legal opinion, the company transitioned to Arena peer-to-peer play exclusively in the state of California. This change took place on June 30, 2025.
The company also noticed these same uncertainties in other jurisdictions. As a result, they have modified the products they provide across all affected locations. Currently, PrizePicks has managed to stay ahead of regulatory enforcement by acting proactively. Competitors, such as Underdog Sports, have taken a different approach. The company is suing to stop the AG’s legal opinion, which would save their against-the-house services.
Expansion Continues Despite Challenges
Despite recent challenges, PrizePicks continues to expand its operations. The company now has gaming licenses in Puerto Rico and Maine. The approval in Puerto Rico represents the first authorization for a daily fantasy sports operator in that territory.
With these additions, PrizePicks now operates in 47 jurisdictions across North America, strengthening its regulated presence as it standardizes on Arena play. The operator is currently operating real-money games in 45 states of the US and Washington, D.C.
Specific markets remain limited to the free-to-play Streak product. They include Connecticut, Iowa, Louisiana, Maryland, Michigan, Mississippi, New Jersey, New York, Ohio, and Pennsylvania. In these states, only Streak is available, with real-money games excluded.
The Arena model and the pursuit of licenses have enabled PrizePicks to be in a great position to respond rapidly to evolving state regulations. It allows them to offer regulated contests in states where permitted, while keeping any other contests free.
Innovation on the Horizon
PrizePicks has signalled interest in prediction markets by filing with the National Futures Association as Performance Predictions II LLC. The filing was first submitted on May 28.
The company has even sought Futures Commission Merchant and Swap Firm status. With that move, PrizePicks will operate under the watch of the Commodity Futures Trading Commission. However, their filing must be approved for this to become a reality.
A typical prelude to introducing regulated futures and derivatives products is registration with the NFA. Should that outcome come to fruition, PrizePicks could be set to host daily fantasy sports on regulated prediction platforms.
Industry Implications and Competitive Landscape
PrizePicks’ transition to an arena-only product could kickstart a broader social sportsbooks industry shift towards peer-to-peer products. This situation is a strong possibility because operators are interested in offering products that are less subject to scrutiny.
Rivals are already adapting. Underdog has restricted its against-the-house betting in California and filed legal claims against the state’s opinion. This change requires competitors to be creative in their experiences and maintain operations at the national level.
Meanwhile, the classification of certain forms of daily fantasy sports as gambling remains a subject of debate between regulators and the courts.
