This partnership comes as PrizePicks becomes the first sports entertainment operator registered as a Futures Commission Merchant (FCM) with the National Futures Association (NFA). This registration allows the company to offer CFTC-regulated derivatives contracts through partnerships with federally approved exchanges.

What the Partnership Means

PrizePicks will integrate Polymarket’s event contracts directly into its app. These contracts will cover sports, entertainment, and cultural events. Users will be able to predict outcomes on topics beyond traditional fantasy sports lineups.

The rollout will happen when Polymarket officially returns to the United States market. The company left the US in 2022 after paying a $1.4 million fine to the CFTC for operating without proper registration.

Source: @Polymarket

PrizePicks CEO Mike Ybarra said the partnership will “open up new experiences for our millions of existing members and introduce our platform to millions of new customers.” Polymarket CEO Shayne Coplan added that the collaboration shows “how prediction markets can enhance fandom while setting a new standard for interactive, regulated sports engagement.”

PrizePicks’ Regulatory Strategy

Unlike competitors taking a more aggressive approach, PrizePicks is focusing heavily on compliance. The company voluntarily ended its Pick’Em real-money contests across the US in August 2024. This move surprised many in the industry but positioned PrizePicks for long-term regulatory approval.

The FCM license is a game-changer. It allows PrizePicks to offer prediction market contracts nationwide under federal oversight. This differs from state-by-state gambling licenses that many competitors use.

PrizePicks currently operates in more than 45 US jurisdictions. The platform has over three million registered users and more than one million monthly active users. In September 2025, lottery operator Allwyn acquired 62.3% of the company for $1.6 billion, valuing PrizePicks at $2.5 billion upfront, with potential to reach $4.15 billion based on performance metrics.

Polymarket’s Return to America

Polymarket has been preparing for its US comeback for months. In July 2025, the platform purchased QCEX for $112 million. QCEX is a CFTC-licensed exchange and clearinghouse, giving Polymarket the regulatory infrastructure needed to operate legally in the United States.

The bigger news came in October 2025 when Intercontinental Exchange (ICE) announced a massive investment. ICE, which owns the New York Stock Exchange, committed up to $2 billion in Polymarket, valuing the prediction market platform at $9 billion. Beyond the money, ICE will distribute Polymarket’s event-driven data to institutional customers worldwide.

Polymarket has also confirmed plans to launch its native POLY token. The company announced on October 24, 2025, that it will distribute tokens through an airdrop to users, though the US market relaunch takes priority over the token launch.

Competition and Industry Landscape

PrizePicks isn’t the only fantasy sports operator entering prediction markets. Its main rival, Underdog Fantasy, partnered with Crypto.com in early September to offer similar products. However, PrizePicks’ FCM-regulated model operates under stricter federal oversight.

Traditional sports betting giant DraftKings is also planning to work with Polymarket. The company’s CEO mentioned during an earnings call that prediction markets could help grow its customer base. Polymarket will serve as the designated clearinghouse for DraftKings’ upcoming predictions market.

Regulatory Challenges Ahead

Not everyone welcomes the prediction market boom. Several states are pushing back against event-based contracts, arguing they’re essentially unlicensed sports betting. Companies like Kalshi and Robinhood face lawsuits in multiple states over their prediction market offerings.

Gaming regulators in Arizona, Ohio, Illinois, New York, and Michigan have warned licensed operators about getting involved with prediction markets. The legal landscape remains uncertain as states and federal regulators work out jurisdiction questions.

There are also concerns about market integrity. A Columbia University study found that artificial trading accounted for an average of 25% of all activity on Polymarket over the past three years. The wash trading activity began in July 2024, when it peaked at nearly 60% of weekly volume. In December 2024, nearly 60% of weekly trades were again flagged as likely wash trading, with researchers detecting coordinated networks of 43,000 wallets.

Despite these concerns, Polymarket continues growing. In November 2025 alone, the platform saw $864 million in cumulative volume, nearly matching the entire month of September.