PrizePicks Navigates Legal Uncertainty in West Virginia

PrizePicks, one of the leading daily fantasy sports (DFS) providers, again faces the scrutiny of West Virginia regulators, where the absence of explicit legal definitions continues to fuel tension between fantasy sports providers and the state’s gaming authorities. However, the company remains adamant that its services are legal and continues to pursue further expansion in the USA and abroad.

PrizePicks faced regulatory pushback in the state

The friction dates back to 2022, when the West Virginia Lottery Commission issued a cease-and-desist order against PrizePicks. According to the regulator, the PrizePicks’ “against-the-house” contests fell under the state’s sports wagering legislation. The operator responded by launching its Arena product, described as a new and compliant format. It offers leaderboard-style competition where participants compete head-to-head for prizes.

According to a recent report by SBC Americas, these ongoing debates have now reached the state’s top legal office. At the behest of House Speaker Roger Hanshaw, Attorney General John McCuskey examined the matter and issued an opinion that could further complicate the situation. McCuskey determined that against-the-house DFS is, in theory, sports wagering under West Virginia law. 

With that legal uncertainty in mind, it’s important that Daily Fantasy Sports are excluded from the definition of “sports wagering.

John McCuskey, West Virginia Attorney General

However, the Attorney General added that the law specifically exempts fantasy sports from the definition of sports betting. McCuskey even questioned whether the Lottery Commission has the jurisdiction to define the term. McCuskey’s comments also undermined the 2022 cease-and-desist letter, as it referenced a bill that never became law. He argued that without a statutory definition, the Commission’s position remains “legally dubious.”

The operator welcomed McCuskey’s comments

The advice the attorney general gave to lawmakers was clear: pass a law that clearly defines fantasy sports, removing the uncertainties that cause unnecessary friction between operators and regulators. PrizePicks, meanwhile, praised the opinion. A spokesperson for the company said that the recent comments confirmed the operator had never operated outside the law in West Virginia.

Despite the controversy, PrizePicks continues expanding its presence. The daily fantasy platform recently secured licenses in Maine and Puerto Rico, which will bolster its footprint and allow it to offer enhanced betting options. PrizePicks also became the first daily fantasy sports operator to receive Internet Compliance Assessment Program (iCAP) accreditation from the National Council on Problem Gambling (NCPG).

Despite regulatory pushback in some states, PrizePicks enjoys significant momentum. These recent developments in West Virginia will further bolster its position. PrizePicks’ growth further underlines the DFS sector’s continued relevance, even as arguments continue over whether some game formats blur the line with traditional sports betting.