Published on: August 20, 2025, at 12:03 PM.
Updated on: August 20, 2025, at 01:19 PM.
- The transition to a PVP model by DFS operator is appealing for potential acquirers
- Online betting companies may explore PrizePicks as an option
- Recent valuation of competitor Underdog Fantasy may benefit PrizePicks
PrizePicks, a daily fantasy sports (DFS) provider, has significantly transitioned to a player versus player (PVP) model. This strategic shift allows access to key markets and potentially positions the company as a strong candidate for acquisition.
According to a report released on Wednesday by Eilers & Krejcik Gaming (EKG), PrizePicks has aggressively pursued this PVP model more than its competitors, potentially aiming to become an attractive target for mergers and acquisitions. In the PVP setup, DFS players compete against each other instead of against the house, a crucial factor as some states like California impose restrictions on player versus house DFS games.
Due to increased scrutiny from state regulators on traditional DFS structures—which may be considered a type of sports wagering—PrizePicks’ pivot to the PVP model appears to be a smart decision.
“The operator now provides PVP formats to approximately 55% of the US,” EKG states. “Innovative PVP formats such as PrizePicks Arena organize customer choices into a tournament style, rewarding top scorers.”
Additionally, EKG highlights that PrizePicks currently offers player versus house DFS options in just three states: North Carolina, Texas, and Virginia.
Is PrizePicks Transitioning from Buyer to Seller?
Claiming to be the largest DFS operator in North America, PrizePicks’ assertion is difficult to dispute, given its successful methods of attracting business away from industry giants DraftKings and FanDuel.
A noteworthy aspect of EKG’s speculation is that PrizePicks recently shifted from seeking acquisitions—having hired Moelis & Co. for that purpose—to possibly entertaining sales, indicating a rapid change in its strategy.
While the research did not specify particular companies likely to be interested in acquiring PrizePicks, it did refer to “online gambling operators” as potential buyers, mentioning that “publicly listed companies” are in search of growth opportunities.
This makes sense as major states such as California, Texas, and Georgia have not yet legalized sports betting, with Florida’s market dominated by Hard Rock, indicating a potential market for PrizePicks if they sustain access to these viable states.
Underdog Valuation as a Model for PrizePicks
Competitor Underdog Fantasy has been valued at $1.23 billion following a $70 million funding round in March, and this could serve as a benchmark for PrizePicks and its potential buyers.
EKG suggests that the valuation of Underdog could reflect a $2 billion estimate for PrizePicks — a price that would likely attract numerous interested parties.
Investors in the Atlanta-based PrizePicks include poker great Phil Hellmuth, former NBA star Andrew Bogut, and ex-Atlanta Braves player Andruw Jones. Institutional investors also include Parlay Capital Holdings and Phoenix Capital Ventures.