PrizePicks in California: A Legal Gray Area or a Skill-Based Game?

PrizePicks

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If you’re a fan of daily fantasy sports (DFS), you might have heard of PrizePicks, a new and exciting way to play DFS online. PrizePicks is a platform that allows you to pick over or under on player stats and win up to 25 times your money. Sounds fun, right?

But before you sign up and start playing, you might be wondering: is PrizePicks legal in California? After all, California is one of the states that has not passed specific legislation to regulate DFS, unlike some other states that have legalized and licensed DFS operators.

In this blog post, I’ll try to answer this question and explain the legal status of PrizePicks in California. I’ll also share some tips on how to play PrizePicks safely and responsibly, and why you should give it a try if you love DFS.

What is DFS and how does it work?

DFS stands for daily fantasy sports, a type of online game that allows you to create your own fantasy team of real-world athletes and compete against other players for prizes. Unlike traditional fantasy sports that last for a whole season, DFS contests are usually based on a single day or week of games.

To play DFS, you need to sign up for a platform that offers DFS contests, such as DraftKings, FanDuel, or PrizePicks. You then need to choose a sport and a contest type, such as head-to-head, tournament, or 50/50. You also need to pay an entry fee, which varies depending on the platform and the contest.

Next, you need to draft your fantasy team, which consists of a number of players from different teams and positions. Each player has a salary, and you have a salary cap that limits the total cost of your team. You need to balance your team’s performance and value, and make sure you don’t exceed the cap.

Once you submit your team, you can track its performance and compare it with other players’ teams. The scoring system depends on the sport and the platform, but it usually awards points based on the real-world stats of the players you selected. For example, in football, you might get points for touchdowns, yards, receptions, etc.

At the end of the contest, the platform calculates the final scores and ranks the teams. The winners are the ones who scored the most points, and they receive a share of the prize pool, which is determined by the number and size of the entries. The losers are the ones who scored the least points, and they lose their entry fees.

What is the legal situation of DFS in California?

California is home to millions of sports fans and DFS players, but it’s also one of the most complicated states when it comes to DFS legality. The state has not passed any laws that explicitly legalize or prohibit DFS, leaving the industry in a legal limbo.

According to the California Penal Code, gambling is illegal in the state unless it is authorized by law. However, the definition of gambling is vague and does not clearly address DFS. Gambling is defined as “any contest, game, gaming scheme, or gaming device in which the outcome is dependent in a material degree upon an element of chance, notwithstanding that skill of the contestants may also be a factor therein” .

The key phrase here is “dependent in a material degree upon an element of chance”. This is where the debate lies: is DFS a game of chance or a game of skill? And how do you measure the degree of chance and skill involved?

The DFS industry argues that DFS is a game of skill, not a game of chance, and therefore not gambling. They claim that DFS players use their knowledge, research, and strategy to select players and predict their performance, and that the outcome is largely determined by their skill.

On the other hand, some opponents of DFS argue that DFS is a game of chance, not a game of skill, and therefore gambling. They claim that DFS players have no control over the performance of the athletes they select, and that the outcome is largely determined by chance.

The California legislature has attempted to pass bills that would legalize and regulate DFS in the state, but none of them have succeeded so far. The most recent bill, AB 1810, was introduced in 2019 and would have classified DFS as a game of skill and created a licensing system for DFS operators. However, the bill stalled in the Assembly and was never voted on .

As a result, the legal status of DFS in California remains unclear and unresolved. DFS operators like DraftKings and FanDuel continue to offer their services in the state, but they do so at their own risk and without any official authorization or oversight.

Where does PrizePicks fit in?

PrizePicks is a relatively new player in the DFS market, having launched in 2018. Unlike traditional DFS platforms that require you to compete against other players in a pool, PrizePicks allows you to play against the house. You simply pick two or more players and choose whether they will go over or under their projected fantasy points. If you’re right, you win. If you’re wrong, you lose.

PrizePicks claims to be the simplest and fastest way to play DFS, and it offers a variety of sports and players to choose from. You can play with as little as $10 and win up to $250,000. You can also cash out your winnings in as little as 15 minutes.

But is PrizePicks legal in California? The answer is not so simple. PrizePicks operates in 31 states, Washington DC, and Canada, but it does not have a license or approval from any state or federal authority. PrizePicks is based in Atlanta, Georgia, and it relies on the federal Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 to justify its legality.

The UIGEA is a law that prohibits online gambling businesses from accepting payments related to unlawful bets or wagers. However, the UIGEA also includes an exception for fantasy sports contests that meet certain criteria, such as having an outcome that reflects the relative knowledge and skill of the participants, and not being based on the outcome of any real-world sporting event .

PrizePicks argues that its contests fall under this exception, and that they are legal under federal law and the laws of the states where it operates. PrizePicks also states that its contests are skill-based, not chance-based, and that they are not gambling.

However, not everyone agrees with this argument. Some critics contend that PrizePicks is a form of gambling, not a fantasy sports contest, and that it violates the UIGEA and state laws. They point out that PrizePicks does not require you to draft a team of players, but rather to bet on individual player stats. They also claim that PrizePicks is based on the outcome of real-world sporting events, and that it involves a high degree of chance.

As of now, there has been no legal challenge or enforcement action against PrizePicks in California or any other state. PrizePicks continues to operate in the state, but it does so at its own risk and without any official authorization or oversight.

How to play PrizePicks safely and responsibly

If you’re interested in playing PrizePicks in California, you should be aware of the legal uncertainty and potential risks involved. You should also follow some best practices to play safely and responsibly, such as:

  • Read the terms and conditions of PrizePicks carefully before signing up and playing. Make sure you understand the rules, fees, and payouts of the platform.
  • Only play with money you can afford to lose. Set a budget and stick to it. Don’t chase your losses or bet more than you can handle.
  • Don’t play under the influence of alcohol or drugs. They can impair your judgment and decision-making skills.
  • Don’t play if you have a gambling problem or addiction. Seek help from a professional or a support group if you need it.
  • Have fun and enjoy the game. Don’t let it become a source of stress or frustration.

Why you should give PrizePicks a try

Despite the legal gray area, PrizePicks is a fun and exciting way to play DFS online. It offers many benefits and advantages over traditional DFS platforms, such as:

  • Simplicity: You don’t have to worry about drafting a team, competing against other players, or managing a salary cap. You just pick over or under on player stats and win or lose.
  • Speed: You don’t have to wait for a contest to fill up or end. You can play anytime, anywhere, and get your results and payouts in minutes.
  • Variety: You can choose from a wide range of sports and players, and mix and match them as you like. You can also customize your entries and payouts according to your preferences and risk appetite.
  • Fun: You can enjoy the thrill and excitement of predicting player performance and winning money. You can also challenge your friends and family and show off your skills and knowledge.

If you love DFS and want to try something new and different, PrizePicks might be the perfect platform for you. It’s easy, fast, and fun to play, and it can give you a new way to enjoy your favorite sports and players.

But remember, PrizePicks is not legal in California, and it might not be legal in your state either. Play at your own risk and responsibility, and don’t gamble more than you can afford to lose.

I hope you found this blog post helpful and informative.