PrizePicks gains CFTC approval as futures commission merchant amid Allwyn deal
The development opens potential opportunities for PrizePicks to offer regulated prediction markets on sports events.
Key points:
– PrizePicks gains FCM approval, enabling potential entry into regulated sports prediction markets
– Approval coincides with Allwyn’s $1.6bn deal to acquire a 62.3% majority stake in the operator
PrizePicks has been approved as a futures commission merchant (FCM), creating a potential pathway into regulated sports prediction markets.
According to filings with the National Futures Association (NFA), a subsidiary of PrizePicks called SidePrize LLC became an official NFA member on 22 September 2025. The listing also indicates that if the company pursues the prediction vertical, it will be through a new division, trading under the name PrizePicks Predicts.
This development places the daily fantasy sports giant alongside competitors such as DraftKings and Underdog, both of which have signalled intentions to enter the regulated predictions space.
Mike Ybarra, CEO of PrizePicks has said: “The honour of being the first sports entertainment platform to receive a FCM registration from the NFA is a testament to our industry-leading compliance and consumer protection programs that both the NFA and CFTC demand.”
He also praised acting commissioner Caroline Pham for her commitment to ‘innovation’ and ‘strong regulatory standards.’
The new status allows PrizePicks to partner with designated contract markets such as Kalshi or Crypto.com to offer regulated event contracts.
The development coincides with Allwyn International’s agreement to acquire a 62.3% stake in PrizePicks for $1.6bn.
If certain performance targets are met, a further $1bn will be paid out, bringing the implied valutation of PrizePicks to $4.15bn – the deal represents Allwyn’s largest US investment to date and underscores its ambitions to expand beyond its established lottery operations in Europe and North America.
However, analysts remain cautious about the long-term prospects. Regulus Partners noted that the dominance of FanDuel and DraftKings in both fantasy sports and sportsbook operations leaves limited room for new entrants to capture significant market share.
In addition, PrizePicks has faced regulatory challenges, shifting this summer to a peer-to-peer format called Arena while discontinuing its Pick’em contests against the house. The change, rolled out nationally in August, may impact revenue growth and operating margins.
While PrizePicks highlights its availability in more than 90% of US states and Canadian provinces, its presence in major sports betting jurisdictions such as New York, New Jersey and Ontario remains restricted to free-to-play contests.
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