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US daily fantasy sports (DFS) operator PrizePicks has agreed to pay a $15m settlement to the New York State Gaming Commission for operating in the state without a licence.

The company has also pledged to terminate its for-money contest products in the state from 14 February after it was ruled to have violated New York state law.

The $15m settlement is based on the revenue PrizePicks generated through purported fantasy contests from New York customers between June 2019 and December 2023.

The penalty also includes a calculation based on the number of days the contests were offered, according to the document, which was co-signed by PrizePicks and the NYSGC.

The document states that PrizePicks does not hold a temporary permit from the regulator to operator fantasy contents in New York and is not authorised to do so under Article 14 of the state’s Racing Law.

PrizePicks is still eligible to apply for a licence in New York in the future.

As part of the ruling, PrizePicks said it operated in New York in a “good-faith belief that it had the ability to do so”.

A spokesperson for PrizePicks told ESPN, which first reported the story, that the company plans to pursue a licence to offer its peer-to-peer product in New York.

“As safer, skill-based DFS contests like ours rise in popularity, we will work constructively with policymakers on thoughtful legislation that allows New Yorkers to play the contests they love, ensure strong consumer safeguards, and generates tax revenue for the state,” a PrizePicks spokesperson was attributed as saying.

In October, New York clarified its position on DFS and said it would prohibit fantasy contests based on prop betting.

Indeed, the landscape for prop-style DFS operators has become increasingly complex in recent months, amid similar clampdowns in Florida and Michigan.

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