New York gaming regulators have officially adopted rules to ban player prop over/under daily fantasy contests in the state.
New York is the fourth state this year to crack down on the player vs. house style that has been popularized by daily fantasy sites PrizePicks and Underdog.
In a release in August, the New York Gaming Commission explained player prop betting under the guise of daily fantasy as, "Essentially sports betting."
A commenter objected to proposed Rule 5602.1(a)(4), which would make explicit that contests shall not be based on proposition betting or contests that have the effect of mimicking proposition betting. The Commission believes that a contest offering that is essentially sports betting, which is authorized for licensees and regulated pursuant to Racing Law Article 13 (not Article 14), cannot properly be characterized as IFS simply because an operator labels it as such.
It's believed by New York — and other states who have cracked down on this certain type of wagering — that it can be difficult to regulate without it being considered sports betting.
Users on PrizePicks and Underdog are able to bet on similar player props that are offered by legal sports betting companies in the form of over/unders.
Daily fantasy sports were originally created to be played with pools in player vs. player competition. It was popularized by FanDuel and DraftKings, who are now fighting to ban the type of daily fantasy wagers that are offered on PrizePicks and Underdog.
“It’s unfortunate DraftKings and FanDuel, the same companies that championed fantasy sports as skill-based for years, have changed their tune at the first sign of competition," the Coalition of Fantasy Sports, which represents PrizePicks and Underdog released in a statement in August. "It’s a thinly veiled attempt to create a false narrative and position themselves as the only games in town."
PrizePicks had no comment when reached for comment on Tuesday afternoon.