Massachusetts is the latest U.S. state to crack down on daily fantasy sports operators.
PrizePicks confirmed to Covers that the Old Bay State is no longer allowing the DFS site to offer fee-based pick’em-style games. The company is instead switching to its latest product this week.
“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."
Under fire
The Massachusetts Attorney General’s Office sent cease-and-desist letters to 10 DFS operators this month. PrizePicks was not one of them as the company and competitor Underdog Fantasy struck a deal with the Old Bay State to change their business practices.
PrizePicks has had a rough couple of weeks. It paused offerings in Florida on Friday after receiving a cease-and-desist letter. Regulators determined PrizePicks was operating illegally in the Sunshine State and mimicking sportsbooks with its prop-style pick games.
PrizePicks also reached a $15 million settlement with New York regulators after illegally operating in the Empire State. PrizePicks said it is aiming to become licensed in the massive New York market, hence the settlement.
Changing the game
Much like Massachusetts' sports betting approach, regulators in Michigan, Arkansas, and Kansas have also taken action to curb DFS sites from doing business.
That’s why PrizePicks created a peer-to-peer game that allows users to compete for prizes by matching them based on experience level, number of entries, and selected entry fee.
PrizePicks first launched the product in Tennessee, Alabama, West Virginia, and Wyoming.
