PrizePicks Gains CFTC Approval as Futures Commission Merchant
PrizePicks, North America’s largest daily fantasy sports operator, has been approved as a registered Futures Commission Merchant (FCM), as first reported by The Closing Line.
Regulatory Green Light
The National Futures Association confirmed that Performance Predictions II LLC, operating under the PrizePicks umbrella as PrizePicks Predict, is now listed as an approved FCM and registered with the Commodity Futures Trading Commission (CFTC).
The designation potentially paves the way for PrizePicks to expand beyond fantasy contests and offer sports-related prediction markets in partnership with a designated contract market such as Kalshi or Crypto.com.
While DFS contests have long been defined separately from sports betting, the FCM approval positions PrizePicks at the intersection of regulated financial markets and gaming. .
Allwyn’s $1.6 Billion Majority Stake
The regulatory breakthrough arrived immediately after PrizePicks announced a definitive agreement with Allwyn International AG.
The European lottery and gaming operator agreed to acquire a 62.3% controlling interest in PrizePicks for an initial cash payment of $1.6 billion, valuing the company at $2.5 billion upfront.
If PrizePicks hits agreed performance metrics between 2026 and 2028, the total enterprise value could climb to $4.15 billion, making it one of the largest cross-border deals in the DFS sector. PrizePicks will continue to operate under its own brand, with CEO Mike Ybarra and co-founder Adam Wexler retaining leadership roles.
Market Context and Growth
Founded in 2015, PrizePicks has grown into the largest DFS operator in North America, offering simplified pick’em contests across more than 45 jurisdictions.
The company generated $339 million in adjusted EBITDA in the twelve months ending June 2025, delivering revenue growth of over 60% year-on-year.
Its fast rise has made PrizePicks a focal point of the ongoing convergence between fantasy sports, regulated sports betting, and now prediction markets.
Analysts see the FCM designation as a signal that DFS operators could one day operate side by side with financial exchanges in offering consumer-facing markets tied to real-world events.
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