- The New York State Gaming Commission today approved the transfer of PointsBet’s online sports betting license to Fanatics Betting and Gaming
- No timeline for transition was announced
- The Commission also approved daily fantasy sports rules for the state that do no include Pick Em’ style games
Fanatics Betting and Gaming is in, while Pick ‘Em style DFS games are out of the New York sports betting market.
The New York State Gaming Commission today gave regulatory approval to the transfer of PointsBet’s online sports betting license to Fanatics Betting and Gaming, setting the stage for the first new sports betting operator in the Empire State since it launched online sports betting in Jan. 2022.
The commission also unanimously approved daily fantasy sports rules and regulations for the state. The rules, however, do not include Pick ‘Em style DFS games popularized by PrizePicks and Underdog Sports, as the commission disapproved of games they claimed mimicked proposition betting.
Fanatics Sportsbook Coming to the Big Apple
Fanatics Betting and Gaming is now the proud owner of a New York online sports betting license, the first new operator out of the original eight that were granted licenses in 2021.
The New York State Gaming Commission approved the transfer of PointsBet’s online sports betting license to Fanatics Betting and Gaming as part of Fanatics’ deal to acquire all U.S. PointsBet assets.
As the case with other acquired states, the PointsBet apps will be rebranded to “PointsBet, a Fanatics Experience.” No timeline on when the rebranding will take place was discussed at the commission meeting.
Fanatics Betting and Gaming issued the following statement after the meeting concluded:
“Today, the New York State Gaming Commission approved Fanatics Betting and Gaming’s acquisition of PointsBet New York LLC. We would like to thank the commissioners and staff of the New York State Gaming Commission for their time and effort in delivering us some great news today. We look forward to working with the staff of the New York State Gaming Commission to bring the Fanatics Sportsbook to the largest sports wagering state in the U.S. ”
PointsBet’s New York online sports betting license was one of the jewels in the Fanatics acquisition of the company’s U.S. assets. In late June, Fanatics improved its bid to PointsBet for $225 million, topping DraftKings’ final offer of $195 million for the company’s U.S. assets.
Through the purchase, Fanatics gained market access into several lucrative sports betting markets through the deal. PointsBet has U.S. market access in 14 states, including New York, New Jersey, Michigan, and Pennsylvania.
PointsBet turned over eight states to Fanatics Betting and Gaming in late August. The two companies announced that Colorado, Iowa, Kansas, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia had officially been turned over to Fanatics Sportsbook.
Pick ‘Em Games Banned From New York
The Commission also unanimously approved the state’s DFS rules this afternoon. The finalized rules do not include Pick Em’ style DFS games, despite protests from PrizePicks, UnderDog Fantasy, and the Coalition for Fantasy Sports (CFS).
The CFS submitted a comment in favor of the Pick Em’ style DFS games, in which customers play against the house and make over-under type selections on a combination of statistical outcomes for athletes. Participants have control of their own skill-based roster selection, CFS wrote, that substantially determines the outcome of the contest.
PrizePicks customers also submitted more than 4,000 form-letters to the commission asking them to reconsider the ban of Pick ’em in the state.
“We are meeting regularly with the NYGC to discuss the future of fantasy sports in New York. We are grateful for the advocacy efforts of our many members in the state and will work with policymakers to ensure that they can continue to play the fantasy sports they know and love,” a PrizePicks spokesperson told Sports Betting Dime.
Despite the comments and letters, the gaming commission passed the proposed rules and banned the Pick ’em style games.
The criteria for DFS games are clearly laid out in the rules.
“These would include statutory standards as well as a requirement that contests shall not be based on proposition betting and shall not have the effect of mimicking proposition betting. Contests in which a contestant chooses whether an individual athlete or a single team will surpass an identified statistical achievement would be prohibited,” a paragraph of the approved rules reads.
An Underdog Fantasy spokesperson told Sports Betting Dime that the company will continue to offer its Pick ‘Em games in New York at the present.
“We will continue to work with the gaming commission to ensure we operate under the finalized fantasy sports rules,” the spokesperson said.