PrizePicks Shift From Traditional DFS to Arena Model
PrizePicks has successfully migrated its daily fantasy sports (DFS) operations in the US to its innovative peer-to-peer Arena model, marking a significant shift in its business strategy.
LISTEN TO THIS ARTICLE:Unlike traditional 'against-the-house' games that have raised concerns among regulators, the Arena format allows users to compete directly against one another rather than the operator. The contests feature head-to-head or group-based competition, where the outcome is determined by the projected performance of players or teams.
The move comes on the heels of similar transitions implemented earlier this summer. In late June, the operator moved to Arena-only play in California, ahead of an expected opinion from Attorney General Rob Bonta that could provide clarity on DFS regulations. The opinion turned out to be a major setback for DFS contests as the AG concluded that both pick’em and draft-style contests are considered sports betting and are therefore prohibited under California law.
On August 22, PrizePicks announced a full transition to Arena in all states and territories in which we operate. We are excited to offer players a more social and engaging DFS product that sets the standard for future innovation in the DFS industry.
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Shifting Regulatory Environment for DFS
PrizePicks’ Arena product has taken center stage as its primary offering as the regulatory landscape for DFS continues to evolve. While opposition seems to be growing against sweepstakes and fantasy sports in the US, there are still some states indifferent to the sector, while some are considering regulating it.
In the meantime, DFS operators are disputing the legality of DFS restrictions. For instance, PrizePicks’ competitor Underdog has filed lawsuits to challenge California’s regulations that restrict their operations.
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