PrizePicks Shifts to Peer-to-Peer Arena in California
PrizePicks has pivoted to its peer-to-peer Arena format in California, replacing its against-the-house pick’em games, as reported by The Closing Line.
Adapting to Regulatory Pressure
In response to a looming opinion from Bonta, expected by July 3, PrizePicks transitioned to Arena, a peer-to-peer model launched in January 2024. Unlike the pick’em format where players compete against the operator, Arena pits players against each other, grouping them by skill level, entry fees, and stat predictions for two or more athletes. For instance, participants select “more” or “less” on player stats, and lineups are matched competitively.
Elisa Richardson, PrizePicks’ VP of Communications, told The Closing Line, “Arena has been incredibly well received by our community, and we’ve seen continued growth as more players engage with this peer-to-peer format.”
The state’s $200 million DFS market, driven by 7 million players, faces scrutiny from tribal gaming groups like the California Nations Indian Gaming Association (CNIGA), who argue DFS violates their gambling exclusivity.
Consequently, Bonta’s opinion may push operators like PrizePicks to exit or adapt, prompting this preemptive shift to Arena, now available in 18 states.
Industry Reactions and Stakes
The Coalition for Fantasy Sports, including PrizePicks, Betr, and Underdog Fantasy, called a potential DFS ban “devastating” for fans, noting 75% of California voters support DFS.
Meanwhile, Underdog Fantasy filed a lawsuit in Sacramento Superior Court to block Bonta’s opinion, arguing it lacks legal authority and could cripple their 10% revenue share from California. Similarly, DraftKings and FanDuel, long-time DFS giants, face billion-dollar losses if forced out, as seen in Texas in 2016.
Tribal leaders, like CNIGA’s James Siva, back Bonta, citing risks of fraud and underage gambling in unregulated DFS. They’ve urged lawmakers to await Bonta’s ruling before considering pro-DFS legislation.
However, Carmichael Dave of SacTown Sports labeled the crackdown “hypocritical,” comparing DFS to stock trading apps. If Bonta’s opinion holds, legal battles are expected, with courts likely deferring to his stance.
Recommended