PrizePicks

Last updated
SidePrize LLC
PrizePicks
Industry
Founded2015
Founders
  • Adam Wexler
  • Jay Deuskar
Headquarters
Atlanta, Georgia
,
U.S.
Key people
  • Mike Ybarra (CEO)
  • Adam Wexler (Executive Chairman)
  • Jay Deuskar (CTO)
  • Renee White (CPO) [1]
ProductsDaily Fantasy Sports
Website www.prizepicks.com

SidePrize LLC, also known as Performance Predictions LLC, is an American daily fantasy sports (DFS) operator doing business as PrizePicks. [2] The company is known for offering DFS contests, such as "pick 'em"-styled games for its users. Headquartered in Atlanta, PrizePicks has encountered contentious legal issues due to its distinction as a DFS operator, as opposed to a sportsbook.

Contents

Description and operation

PrizePicks is particularly known for its daily fantasy sports, holding a status as the largest daily fantasy sports operation in North America and the United States. [3] [4] The Chicago Tribune has written that PrizePicks is a DFS operator specifically, "rather than a sportsbook" or "a traditional sports betting site". [5] Due to this distinction, PrizePicks has been able to operate in states where online sports betting is not legal. [5] Some of the DFS contests that PrizePicks offers include "pick'em-style games", which have been described as "closely [mirroring] player prop betting" found in traditional sports betting. [6]

As of June 2024, the company offers paid fantasy games in 30 U.S. states and Washington, D.C. [4]

History

Adam Wexler developed the concept for PrizePicks in late 2014, [7] and co-founded the company with Jay Deuskar. [8] [lower-alpha 1] Wexler and Deuskar also serve as the company's chief executive officer (CEO) and chief technology officer (CTO), respectively. [8] [10] Despite sports betting being illegal in Georgia, PrizePicks' DFS distinction allows it to operate in the state. [11] As such, it is headquartered in Atlanta, having originally worked out of the Atlanta Tech Village, before moving its headquarters to the Star Metals building in West Midtown in April 2024. [11] [12] [13] PrizePicks invested $25 million into its West Midtown headquarters. [14] Wexler has ties to the area, being an Atlanta native and a graduate of the University of Georgia. [11] Deuskar is also from Atlanta. [8]

The company is known for its support of esports since 2019, having connected with the video game publisher and fellow Atlanta-based company Hi-Rez Studios to support the publisher's Smite game. [15] The DFS operator stated that its total esports entry fees increased over 110% from 2022 to 2023. [3]

On February 1, 2024, the company announced a marketing partnership with the Stephen A. Smith Show, hosted by the titular sports media personality. [16] The company announced a partnership with the Atlanta Braves in April, [17] and in June, PrizePicks announced various partnerships and program launches. The company partnered with Kindbridge Behavioral Health in order to provide free assistance to users experiencing problem gambling issues. [4] PrizePicks also entered a marketing partnership with State Farm Arena. [18] The arena is notably located in Atlanta, the site of PrizePick's headquarters. [18] Due to its history with esports, PrizePicks also launched "The Esports Lab", which details "stats, live matches and educational resources" regarding esports tournaments. [3] The Esports Lab supports Counter-Strike 2 , League of Legends and Dota 2 . [15]

On August 5, the company announced former Blizzard Entertainment president Mike Ybarra as Wexler's successor as CEO effectively immediately, with Wexler transitioning to an executive chairman role. [19]

PrizePicks has been shut down in several states due to what these states deemed to be "sports betting"; as a result, in January 2024, PrizePicks launched betting products "more in line with traditional DFS constructs". [20]

In September 2023, the Florida Gaming Control Commission (FGCC) sent a cease-and-desist letter to PrizePicks, with the state's gambling regulators accusing the DFS operator of "offering potentially illegal mobile betting games." [21] The letter alleged PrizePicks offers "wagers on contest of skills", prohibited under Florida law. [22] They were later ordered to end their pick 'em games in the state in February 2024. [2] However, in April, PrizePicks re-entered the state's DFS market with a peer-to-peer contest format, which features "skill-based competitions where outcomes are determined by players' decisions, not by odds from the operators". [23] PrizePicks dubbed their peer-to-peer contest as "Arena", with the format complying with Florida's law on gambling. [23]

Also in February 2024, PrizePicks announced it would be at least temporarily ceasing paid contests in the state of New York due to changes in the state's gaming laws. [24] Though PrizePicks stated it operated in good faith, believing that it had the capabilities to offer interactive fantasy sports (IFS) contests, [6] the company agreed to pay "nearly $15 million to the state's gaming commission for operating without a license". [24] The $15 million figure was based on revenue PrizePicks garnered from the purported IFS bets placed by New York-based bettors from June 4, 2019, through December 19, 2023. [24] New York regulators had previously agreed to ban "pick'em" games in October 2023, though PrizePicks was in violation regardless because they did not have the authorization to offer any type of IFS games in the state. [6]

Notes

  1. ↑ Sources differ on when PrizePicks was officially founded. Chicago Tribune lists it as 2015, [5] while the Inc. 5000 profile on PrizePicks lists it as 2017. [9]

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References

  1. ↑ "PrizePicks Announces New Chief People Officer and Key Responsible Gaming Hire". PrizePicks. PR Newswire. April 24, 2024. Retrieved July 8, 2024.
  2. 1 2 Bridges, C. A. (February 23, 2024). "Fantasy sports Betr, PrizePicks, Underdog Fantasy reportedly pulling out of Florida". Tallahassee Democrat . Retrieved July 19, 2024.
  3. 1 2 3 "PrizePicks Launches The Esports Lab" (Press release). PrizePicks. PR Newswire. June 11, 2024. Retrieved July 1, 2024.
  4. 1 2 3 McQuillan, Sam (June 14, 2024). "Kindbridge, PrizePicks To Provide Free Problem Gambling Service". Legal Sports Report. Retrieved July 19, 2024.
  5. 1 2 3 Firstenberg, Ian (July 8, 2024) [December 4, 2023]. "PrizePicks Promo Code TRIBUNE: $100 Deposit Match | July 2024". The Chicago Tribune . Retrieved July 19, 2024.
  6. 1 2 3 Grimes, Prince J. (February 14, 2024). "Why PrizePicks has to pause games in New York and pay the state $15M". USA Today . Retrieved July 19, 2024.
  7. ↑ Jaffe, Marcia Caller (October 13, 2021). "Wexler Makes Fantasy Sports Real with PrizePicks". Atlanta Jewish Times . Retrieved July 19, 2024.
  8. 1 2 3 "C-Suite Connect: Jay Deuskar, PrizePicks". Atlanta Tech Village. June 11, 2024. Retrieved July 19, 2024.
  9. ↑ "PrizePicks". Inc. Retrieved July 19, 2024.
  10. ↑ Tuchman, Robert (May 21, 2024). Thomas, Jessica (ed.). "This Founder Started a Fast-Growing Sports Company After Honing His Entrepreneurial Skills. Here Are His Best Success Tips". Entrepreneur . Retrieved June 29, 2024.
  11. 1 2 3 Bluestein, Greg; Hansen, Zachary (April 4, 2024). "PrizePicks to add 1,000 new jobs and expand Atlanta HQ". The Atlanta Journal-Constitution . Retrieved July 19, 2024.
  12. ↑ Tochterman, Leo (April 4, 2024). "PrizePicks, daily fantasy sports company, expanding its Atlanta headquarters". WSB-TV . Retrieved July 19, 2024– via Yahoo! Finance.
  13. ↑ Hansen, Zachary (June 12, 2024). "PrizePicks expanding Atlanta HQ despite Georgia's sports betting purgatory" . The Atlanta Journal-Constitution . Retrieved July 6, 2024.
  14. ↑ Kellogg, Rachel (April 9, 2024). "PrizePicks To Open 33,000-Square-Foot Headquarters in Atlanta". Marietta Daily Journal . Retrieved July 19, 2024.
  15. 1 2 Fragen, Jordan (June 11, 2024). "PrizePicks introduces esports education tool for fantasy sports fans". GamesBeat . Retrieved July 19, 2024.
  16. ↑ "PrizePicks Signs Stephen A. Smith Show to Exclusive Marketing Partnership" (Press release). PrizePicks. PR Newswire. February 1, 2024. Retrieved July 19, 2024– via Yahoo! Finance.
  17. ↑ "PrizePicks Extends Partnership as Official Daily Fantasy Sports Partner of the Atlanta Braves" (Press release). PrizePicks. PR Newswire. April 9, 2024. Retrieved July 19, 2024.
  18. 1 2 "PrizePicks and State Farm Arena Announce Marketing Partnership" (Press release). PrizePicks. PR Newswire. June 20, 2024. Retrieved July 19, 2024– via fox44news.com.
  19. ↑ "Gaming Veteran Mike Ybarra Appointed as CEO of PrizePicks" (Press release). PrizePicks. PR Newswire. August 5, 2024. Retrieved August 6, 2024.
  20. ↑ King, Bill (January 25, 2024). "PrizePicks launching more traditional DFS offering in four states" . Sports Business Journal. Retrieved July 19, 2024.
  21. ↑ Girod, Brandon (September 25, 2023). "Florida sent cease-and-desist letters to three daily fantasy sports operators. What to know". Tallahassee Democrat . Retrieved July 19, 2024.
  22. ↑ McQuillan, Sam (September 22, 2023). "Florida Orders PrizePicks, Fantasy Sports Outfits To Stop Taking 'Illegal Bets'". Legal Sports Report. Retrieved July 19, 2024.
  23. 1 2 DeLisa, Caden (April 22, 2024). "PrizePicks, Underdog Fantasy resume operations in Florida with new legal gaming formats". The Capitolist . Retrieved July 19, 2024.
  24. 1 2 3 Purdum, David; Greenberg, Doug (February 13, 2024). "PrizePicks to cease contests in New York, pay $15M". ESPN . Retrieved July 19, 2024.
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