- PrizePicks will offer a new way to bet after receiving federal approval to enter prediction markets.
ATLANTA – The daily fantasy sports operator PrizePicks was approved Monday as a futures commission merchant (FCM) by the Commodity Futures Trading Commission. In plain terms, that status allows PrizePicks to work with platforms to have legal sports betting on certain events like the outcome of a game or a season milestone.
The company’s new license will operate under the name “PrizePicks Predict.”
This move makes PrizePicks the second big fantasy brand to step into prediction markets. Earlier this month, Underdog launched its own version of sports event contracts through a partnership with Crypto.com.
Catch Up: Underdog, Crypto.com Team Up In Sports Prediction Market
While Underdog isn’t licensed as an FCM, they can still offer markets as a technology partner.
All Part of the Plan
The timing is striking: the approval came the same day that European lottery giant Allwyn announced a $2.5 billion deal to acquire a majority stake in PrizePicks. That backing could give the Atlanta-based company the resources to expand faster as prediction markets gain traction in the U.S.
PrizePicks has already been shifting its product. Earlier this year, it dropped its “against the house” fantasy contests and switched fully to a peer-to-peer format. That change was widely seen as a way to strengthen its legal footing before the Allwyn deal and this latest approval.
While competitors like Sleeper are still waiting on the green light from regulators, PrizePicks and Underdog are now positioned at the front of the line as fantasy companies look for new ways to blend legal online sportsbooks with prediction-style games.
