New York Gaming Commission Bans Player Prop Games From Fantasy Apps

New York has taken a significant step in changing the rules for its daily fantasy sports market. The New York Gaming Commission has voted to ban player props involving Over/Under Pick’Em style games. In recent months, this has been an ongoing debate in the sports betting inudstry, the NY DFS industry, and beyond. New York has officially banned the practice in the Empire State, requiring a sports betting license, not a fantasy sports license, to offer player props to the public.

DFS Changes Coming To NY

The new rules banning player-prop style Pick’Em games at fantasy operators will be published on Oct. 18. These changes will remove these types of player vs. house-style fantasy games in New York. Over/Under betting will still be available at New York sportsbooks, and traditional DFS contests are still allowed. However, popular operators like PrizePicks and Underdog are greatly affected.

The Commission voted on the rule changes unanimously despite efforts made by the Coalition of Fantasy Sports. This coalition represents the likes of PrizePicks and Underdog Fantasy and has been working to argue against the narrative about Pick’Em style DFS games.

“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,” wrote the coalition in a statement back in July. “It’s a thinly veiled attempt to create a false narrative and position themselves as the only games in town.”

It should be noted DraftKings and Fanduel have never offered player prop-style parlay games on their DFS apps. DK and FD only offer player props on their state-licensed sportsbook apps.

Fans of PrizePicks also supplied more than 4,000 letters to the Commission in an attempt to get them to reconsider banning prop-style games on DFS sites. The Commission was not swayed in their efforts, and the DFS changes will be coming to New York.

Reason Behind The Ban

The NY Gaming Commission views the Pick’Em style games as sports betting, not DFS, and therefore would need a sports betting license. The Pick’Em style Over/Under fantasy games are too similar to prop betting for the Commission. The Commission released this statement in August to define DFS:

“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.”

Campaigning from DraftKings and FanDuel has also swayed public opinion on these DFS games. The gaming commission began taking a closer look at these DFS companies following complaints from the popular sports betting operator.

More Markets Could Follow This Decision

New York is not the only market with concerns about the player prop-style games on DFS sites. The Michigan Gaming Control Board is banning Pick’Em style fantasy games as well, following New York’s decision.

The Florida Gaming Control Board delivered cease and desist letters to PrizePicks, Underdog & Betr. Harsher rules and bans could likely be coming from the Sunshine State.

“Florida Gaming Commission has received information that your company may be offering or accepting illegal bets or wagers from Florida residents,” reads the letters. We have also received information that your company may be promoting and conducting an illegal lottery.”

Wyoming was among the first states to crack down on DFS sites offering player-prop style games. New York could be just the next domino to fall and shift the DFS market.