Is PrizePicks legit? Safe? Legal? Where is it banned?
Author:
Zach Lutz
Published:
Oct 24, 2024
,
10:38 a.m.
ET
If you’ve been following the rise of online daily fantasy sports (DFS) meets betting hybrid “fantasy” platforms, you’ve probably heard of PrizePicks. The company’s growth has been remarkable, but what exactly is PrizePicks? Is it legitimate and safe to use? And more importantly, where is it legal, and where is it banned?
This article breaks down everything you need to know about PrizePicks and its current standing in the world of online gaming, including another recent lawsuit in Massachusetts suing PrizePicks and other operators with similar offerings that mimic prop betting.
Is PrizePicks a legal, legitimate gaming operator?
PrizePicks operates as a Daily Fantasy Sports platform, which means users can pick and predict the performance of individual athletes. However, it differs from traditional DFS platforms like DraftKings or FanDuel, as in many locations it allows users to bet against the house, rather than competing against other users. This version of gaming has been called "DFS 2.0" by some, but others just consider their products to be parlays of player props.
The platform operates legally, but in a legal gray area, much like other DFS 2.0 platforms. These games can feel very similar to sports betting, but they remain distinct by emphasizing fantasy sports structures – such as making multiple predictions in one entry, which constitutes a "lineup.”
This differentiation allows operators like PrizePicks to legally function in states where traditional sports betting has not been legalized. In DFS 2.0, users risk real money on whether athletes will perform “higher” or “lower” than a statistical projection, rather than using traditional sports betting terms like “over” and “under.”
Where is PrizePicks available? Which states?
PrizePicks is currently available in 43 U.S. states, Washington D.C., and all Canadian provinces except Ontario. It offers different types of gaming products depending on state regulations, including:
Pick 'Em: Available to residents 19+ in AR, CA, DC, GA, IL, IN, MN, NE, NM, NC, ND, OK, RI, SC, SD, TX, UT, VT, VA, WI. This mode allows users to select whether athletes will perform “higher” or “lower” on specific stats and build a lineup of 2-6 players. Users can choose between Flex Play (1 or 2 picks can lose) or Power Play (all must win) for their payout.
Pick 'Em Arena: This mode is available to residents 18+ in AK, FL, KS, KY, NH, OR, TN, WV, & WY. 19+ in AL, CO. 21+ in AZ and MA. It pits users against others of similar skill levels, entry fees and lineup predictions. Users win either by getting a perfect lineup or having the best lineup in their group.
Streak (Free to Play): Available to residents 19+ in CT, DE, IA, LA, MI, MO, MS, NJ, NY OH, PA, Streak allows users to make a daily prediction. The longer the streak of correct predictions, the larger the reward, potentially up to $1 million.
How old do you have to be to use PrizePicks?
PrizePicks users must generally be at least 19 years old, except in Massachusetts and Arizona, where users must be 21 or older. Be sure to check the age requirements based on your location before signing up.
In which states is PrizePicks outlawed and unavailable?
PrizePicks is not operational in the following states:
Idaho
Hawaii
Nevada
Montana
Washington
In addition, single-player fantasy contests, such as those featured on PrizePicks, are outlawed in:
Maryland
Ohio
West Virginia
These states argue that platforms like PrizePicks cross into the realm of sports betting rather than DFS. PrizePicks has faced legal battles in various states as regulators grapple with this evolving form of gaming, and recent cease-and-desist letters indicate ongoing tensions between operators and regulators.
Past legal battles for PrizePicks and “DFS 2.0” operators
Daily fantasy sports (DFS) operators, including PrizePicks, faced significant legal hurdles in Arkansas, Florida and Kansas. PrizePicks received a cease-and-desist order from these states’ gaming commissions, halting their against-the house, player-prop-style games, which were deemed to violate state gambling regulations.
This regulatory clash marked a critical point for DFS platforms. For example, the Florida Gaming Control Commission (FGCC) targeted the "pick'em" style contests, where players wagered on specific outcomes, such as whether a sports team would score over or under a certain threshold. In response, PrizePicks and two other operators were given 30 days to comply or face legal action from the Attorney General’s Office of Statewide Prosecution.
Despite this challenge, PrizePicks swiftly adapted to Florida’s gaming laws by introducing new, compliant formats dubbed “peer-to-peer” games. These formats, such as PrizePicks' "Arena," now allow users to compete against each other rather than betting against the house, aligning with Florida’s legal requirements for skill-based gaming.
There was a similar situation in Massachusetts, where earlier this year regulators cracked down on the against-the-house version of their product suite. Therefore, PrizePicks and others agreed to limit their in-state offering to the peer-to-peer version only. “PrizePicks has reached an agreement with regulators in Massachusetts to offer our peer-to-peer Arena game starting March 8th,” a PrizePicks spokesperson said. “We appreciate the Massachusetts regulators' willingness to work with us to make sure PrizePicks’ members and fantasy sports fans have no interruptions in their access to our contests."
Now, a Massachusetts lawyer is suing PrizePicks and two other fantasy operators in a class action lawsuit. It claims that operators were offering prohibited sports betting instead of DFS, including “prop bets” and “parlays,” until the limitations were agreed to in March 2024. According to the lawsuit, these companies collectively generated over $10 million per month from allegedly illegal gambling operations. Plaintiffs are seeking recovery of wagered money under Massachusetts General Law Chapter 137, which allows for the recovery of funds lost using unauthorized gaming or sports betting products. It’s unclear whether the suit will be successful, or if the operators changing the offering earlier this year will be enough to have shown good faith efforts to align them with MA gaming laws.
Dangers and risks of PrizePicks
While PrizePicks markets itself as a fun and legal form of entertainment, it’s important to recognize the risks involved. The platform essentially functions as a form of sports betting, particularly when users string multiple predictions together, known as "parlays" in traditional betting. By allowing users to wager on specific athletes' performances, the platform can encourage addictive behavior, especially among younger users where the age minimum is 19 years old instead of 21. .
Research has shown that younger individuals are more susceptible to gambling addiction because their prefrontal cortex, which governs impulse control and risk assessment, isn’t fully developed until age 25. This can lead to reckless decision-making and higher risks of developing problematic gambling habits. With PrizePicks operating in states where sports betting is otherwise illegal (such as Texas and California), it exists in a legally murky space that could lead to further regulation.
Additionally, PrizePicks’ odds have been known to build in significantly more “vig” or “juice” than others. One of the company’s social media influencers recently posted a season-long lineup of player performance picks, risking $5,000 to win $50,000. However, some users pointed out that on traditional sportsbooks, the same set of picks in a season-long parlay would pay out more than $100,000. Some bettors (or “DFS players”) don’t do the research to see what the true odds should be for what is essentially a multi-leg parlay of player props, instead choosing to just “tail” the influencer’s play on PrizePicks. This was just the latest example of PrizePicks’ odds being relatively low when compared to those offered by other operators. It’s much easier to lose money long term when paying significantly more vig on each play.
Gambling Addiction Treatment for PrizePicks users
If you or someone you know struggles with an addiction to PrizePicks or other gaming platforms, help is available. Birches Health offers specialized treatment programs designed to address the unique challenges of gambling addiction related to DFS, sports betting and every gambling product in between. Birches’ team of expert counselors can guide and support you as you regain control over your life. Thanks to teletherapy technology, care sessions take place from the comfort of home, often with low or no out-of-pocket costs.
Depending on your situation, you can get started at Birches in one of the following ways:
Alternatively, you can simply call 833-483-3838 or email hello@bircheshealth.com to get in touch directly with the Birches team!
