PrizePicks has taken a major step into the regulated predictions space after receiving approval from the National Futures Association (NFA) to operate as a Futures Commission Merchant (FCM). Its subsidiary, Performance Predictions II, LLC, is now officially registered, making PrizePicks the first company tied to a fantasy sports operator to hold this designation.
This registration grants the Atlanta-based company the authority to accept customer orders to buy and sell futures contracts through Designated Contract Markets (DCMs) regulated by the Commodity Futures Trading Commission (CFTC). While PrizePicks won’t immediately launch its own event contracts, the approval positions the company to collaborate with CFTC-regulated partners like Kalshi, opening a new path for growth in the prediction market industry.
“The honor 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,” said Mike Ybarra, CEO of PrizePicks, in a company press release. He credited Acting Chairman Caroline Pham for guiding the CFTC with a vision that “promotes innovation while reinforcing the importance of strong regulatory standards.”
Chief Legal Officer and Head of Public Policy Jason Barclay added, “As the nation’s leader in predictions, this is a defining moment for us. We are grateful to the NFA for its thoughtful process and diligent work on our application.”
Positioned for Expansion Amid Industry Shifts
The FCM status comes at a pivotal time. PrizePicks has been navigating regulatory challenges, including pushback from some states on daily fantasy sports (DFS). In California, Attorney General Rob Bonta declared paid DFS contests illegal in a recent opinion, forcing PrizePicks to switch to peer-to-peer formats in the state and ultimately nationwide. The new registration could provide a long-term solution if DFS operators face tighter restrictions, as it allows PrizePicks to participate in prediction markets under federal oversight.
Other fantasy and sports betting operators are also eyeing this space. DraftKings, Fanatics, and Underdog have applications pending with the NFA, while FanDuel has partnered with CME, a registered derivatives marketplace, to prepare its own predictions platform. Competitor Underdog has already introduced sports contracts in 16 states through a technology partnership with Crypto.com, though without NFA approval. Meanwhile, DFS app Sleeper has accused the CFTC of improperly blocking its bid to launch prediction markets.
PrizePicks’ new venture will operate under the name “PrizePicks Predict,” according to NFA filings. A spokesperson noted that while the company has not yet disclosed what products it will introduce or when they will launch, additional updates are expected as development moves forward.
A Defining Week for PrizePicks
The registration news arrives just one day after European lottery giant Allwyn announced plans to acquire a controlling 62.3% stake in PrizePicks for $1.6 billion. The deal, which values the fantasy sports leader at $2.5 billion, is expected to close in 2026. PrizePicks’ leadership, including Ybarra, will remain in place following the acquisition.
Founded in 2015, PrizePicks has grown into the largest daily fantasy sports operator in the United States, with operations spanning 45+ jurisdictions. The platform focuses on skill-based fantasy contests, particularly player stat and prop picks, and recently shifted fully to its peer-to-peer Arena format. Expanding into federally regulated prediction markets represents its boldest move yet to diversify and remain competitive in a rapidly changing industry.
Ybarra has indicated that the company views prediction markets as a natural extension of its entertainment focus. “I feel like every week there’s something new that’s happened in this space, but I also see it as a big opportunity,” he told Covers ahead of the NFA approval. “We’re not ignoring it. We’re definitely looking at it.”
