California is the nation’s most populous state. As such, it is greatly desired by sportsbooks hoping to cash in if and when California sports betting becomes legal.
So far, all efforts to legalize sports wagering in the Golden State have failed, but prediction markets have created a backdoor into the crown jewel of sports wagering.
And PrizePicks is looking to get in on the action.
The operator, best known for offering daily fantasy sports (DFS), has launched a prediction market (PM) platform in California. Through its partnership with PM leader Kalshi, Californians can now make predictions on upcoming cultural and sporting events via the PrizePicks app.
DFS games also on the menu
According to its website, California is one of 28 states where PrizePicks customers can participate in “Team Picks.” It invites players to “pick a team and earn money if you make the right call across the NFL, NBA, UFC, boxing, and more.”
Clicking the link to play sends users to a splash page encouraging them to download the PrizePicks mobile app to register, along with a bonus offer: Play $5 and get $50 to make more predictions.
Californians can also participate in its popular DFS offering, “Player Picks,” and “Culture Picks,” similar to Team Picks but built around trending topics outside of sports.
Acquisition precedes PM move
Founded in 2014 under the name PredictPicks, PrizePicks initially launched as a DFS operator. Last November, it partnered with Kalshi to enter the PM sphere.
PrizePicks CEO Mike Ybarra said venturing into the PM market was the next logical step for the company’s continued growth.
“Expanding into prediction markets delivers on what our customers want, innovative products with more ways to play. Together with Kalshi, we will welcome new customers across many states to the PrizePicks experience, and we couldn’t be more excited about the opportunity ahead in this fast-growing space.”
The launch comes a week after a majority of PrizePicks was purchased by Allwyn, a Swiss company with global reach.
Ybarra said the acquisition would leave PrizePicks well positioned to expand.
“Today marks a defining moment for PrizePicks. Allwyn’s global scale, operational expertise, and long-term approach make them an ideal partner as we continue to grow and evolve. Together, we will build on our strong momentum and deliver innovative products that deepen engagement with our growing community of players.”
Dustin Gouker with Event Horizon noted that PrizePicks was operating in just 15 states two months ago. Now, it’s 45.
PM platforms swoop in
Kalshi still faces an ongoing legal challenge from Blue Lake Rancheria, Chicken Ranch Rancheria of Me-Wuk Indians, and Picayune Rancheria of the Chukchansi Indians tribes. A preliminary injunction to halt Kalshi and Polymarket from operating on tribal lands in California while the case is active was squelched by a US District Court judge.
In effect, that ruling opened the door for other companies with PM platforms to target California, including Fanatics, DraftKings, and FanDuel.
