The Arizona Department of Gaming (ADG) ordered daily fantasy sports (DFS) pick’em contests to cease because they behave too much like sports betting.
The Mississippi Gaming Commission (MGC) sent similar correspondence about the prop bet-style contests.
Underdog is still operating in both states, while PrizePicks operates just in Arizona.
“The disputed wagers are not fantasy sports contests because a key piece of a fantasy sports contest is that participants create teams and compete against one another in simulated games,” ADG Assistant Director of Compliance Andrea Milford wrote in the letter, obtained by LSR. “The disputed wagers do fit squarely within the definition of event wagering. So, they may only be offered by properly licensed event wagering operators.”
Arizona sports betting and DFS became legal in 2021. Spokespeople from PrizePicks and Underdog said the ADG reviewed and approved the pick’em contests in 2022.
MGC Executive Director Jay McDaniel wrote in a letter obtained by LSR that Mississippi law does not allow player vs. house contests. He also wrote that one factor of an athlete’s performance cannot determine DFS contests.
Mississippi legalized DFS in 2017. Director of Compliance Stephanie Sills told LSR earlier this year, “We do not allow ‘pick’em products’ in our state since it looks just like sports betting.”
Spokespeople from both PrizePicks and Underdog said the operators will continue to work with regulators.
Meanwhile, a PrizePicks spokesperson said, “We look forward to continued dialogue with ADG to ensure that there remains a competitive marketplace for fantasy sports.”
Arizona and Mississippi join the growing list of states with issues when it comes to pick’em contests. These include Colorado, Michigan, New York, Maine, North Carolina, Wyoming and Florida.
