PrizePicks to offer Polymarket sports contracts after regulatory approval

Daily fantasy sports operator PrizePicks has announced a partnership with Polymarket that will allow its users to access the prediction market’s sports event contracts once Polymarket relaunches in the United States.

The deal follows PrizePicks’ approval from the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) to operate as a Futures Commission Merchant (FCM). That designation allows the company to offer contracts from CFTC-registered exchanges.

Currently, Robinhood is the most prominent FCM in the prediction markets sector, facilitating user access to contracts from Kalshi and accounting for roughly half of Kalshi’s trading volume.

PrizePicks said the new partnership will provide users access to “a wide range of sports, entertainment, and cultural moments.”

“As the No. 1 daily fantasy sports operator in the U.S., PrizePicks is thrilled to partner with Polymarket, a trailblazer in the prediction space, to open up new experiences for our millions of existing members and introduce our platform to millions of new customers,” PrizePicks CEO Mike Ybarra said in a statement.

The announcement comes as Polymarket prepares to return to the U.S. market. The company currently blocks American users on its global site, but acquired a CFTC-registered exchange in July and is working on a separate domestic platform.

However, Polymarket’s progress has been delayed due to the ongoing federal government shutdown, reports InGame, which has halted the processing of self-certifications necessary for new contracts. With a resolution appearing close, the relaunch could happen soon.

Tuesday’s announcement described Polymarket’s U.S. platform as “soon-to-launch.”

“By entering the U.S. predictions market, PrizePicks will create greater competition, drive innovation, and deliver even more value directly to members,” Ybarra said. “Together with Polymarket, we’ll continue to focus on product, innovation, and exceeding our customers’ expectations.”

Polymarket CEO Shayne Coplan said the partnership highlights how prediction markets can enhance sports engagement. “PrizePicks has built one of the nation’s most exciting sports communities, and we are excited to help bring prediction markets into that world,”  Coplan said. “As we prepare to return to the U.S., this partnership shows how prediction markets can enhance fandom while setting a new standard for interactive, regulated sports engagement.”

Last week, Polymarket revealed a new U.S. fee structure that undercuts rival Kalshi, signaling it is close to relaunch.

PrizePicks is the second major daily fantasy company to enter the prediction market space, following Underdog’s September deal with Crypto.com. Unlike PrizePicks, Underdog is not a registered FCM and instead acts as a service provider.

Regulators in Arizona, Ohio, Illinois, New York, and Michigan have warned operators that participating in prediction markets could violate gambling laws and threaten their licenses. PrizePicks holds fantasy sports licenses in New York and Arizona.

The partnership follows Allwyn’s purchase of a 62.3% stake in PrizePicks for $1.6 billion in September, valuing the company at $2.5 billion. The deal includes up to $1 billion in additional performance-based payments, potentially bringing the total to $2.6 billion.