PrizePicks receives FCM registration to buy and sell futures contracts
Cftc Approval Prizepicks
The NFA officially awarded FCM registration to PrizePicks’ subsidiary Performance Predictions II on September 23, marking the first company affiliated with a fantasy sports operator to do so.
Key Points
- The registration comes shortly after Allwyn International moved to acquire a majority stake in PrizePicks, expected to close in the first half of 2026 for a $1.6bn consideration
- The designation also allows PrizePicks to accept orders from its users looking to buy and sell futures contracts offered by DCMs and regulated by the CFTC
Performance Predictions II, a subsidiary of daily fantasy sports (DFS) operator PrizePicks, became the first company affiliated with a fantasy sports operator to be officially registered as a Futures Commission Merchant (FCM) by the National Futures Association (NFA) on September 23.
As part of the registration, PrizePicks may now accept orders from its users looking to buy and sell futures contracts offered by Designated Contract Markets (DCMs) and regulated by the Commodity Futures Trading Commission (CFTC).
“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,” PrizePicks CEO Mike Ybarra said.
“Acting Chairman Caroline Pham’s vision for the CFTC promotes innovation while reinforcing the importance of strong regulatory standards. Her leadership has set a thoughtful tone for the agency and our industry.”
The DFS operator also stated it “looks forward” to furthering its collaboration with the CFTC and NFA to ensure PrizePicks meets the “highest standards” of regulatory compliance.
PrizePicks Chief Legal Officer and Head of Public Policy Jason Barclay also commented on the new registration, having said, “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.”
Good to know: PrizePicks confirmed it transitioned all DFS operations throughout the US to its peer-to-peer Arena model on August 26, allowing users to compete directly against other players rather than the operator
The registration comes shortly after Allwyn International moved to acquire a 62.3% majority stake in PrizePicks on September 22, expected to close in the first half of 2026 for an initial cash consideration of $1.6bn.
Depending on PrizePicks’ performance in the coming months, an additional $1bn could be paid out to the selling shareholders, increasing the implied enterprise value to $4.15bn.
PrizePicks will continue to operate as a standalone brand led by Mike Ybarra, along with the current leadership team in place, who joined the fantasy sports company in 2024 following his tenure at Activision Blizzard.
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