PrizePicks Merges Fantasy Sports and Prediction Markets via Blockchain Partnership

PrizePicks, one of North America's largest daily fantasy sports operators, has entered the prediction markets space through a partnership with Polymarket, signaling a strategic pivot to diversify revenue streams and engage users beyond traditional sports contests. The collaboration will integrate Polymarket's event contracts directly into the PrizePicks app, allowing users to wager on outcomes spanning sports, entertainment, and cultural events. The move aligns with Polymarket's re-entry into the U.S. market, a development that could expand access to federally regulated prediction trading for American users.

The partnership highlights the growing convergence of fantasy sports and prediction markets, a sector that has gained traction amid regulatory shifts and evolving consumer preferences. CEO Mike Ybarra emphasized the opportunity to expand the company's reach into states like Washington, where traditional sports betting is restricted. By leveraging Polymarket's decentralized infrastructure, built on the Polygon blockchain, PrizePicks aims to offer a transparent and scalable platform for users to predict real-world outcomes.

The collaboration is underpinned by Polymarket's compliance with U.S. regulations, including its status as a CFTC-permitted derivatives exchange. This framework allows PrizePicks to offer event contracts while adhering to federal oversight, a critical differentiator in a landscape where state-level gambling laws vary widely.

The partnership also follows a broader industry trend: prediction markets are increasingly seen as a complementary revenue stream for sports betting platforms. Flutter Entertainment recently launched FanDuel Predicts to target untapped markets.

Polymarket's role in this expansion is pivotal. The platform reported $2 billion in weekly trading volume on Kalshi and Polymarket in October 2025. However, the partnership has not been without scrutiny. A Columbia University study flagged potential wash trading on Polymarket, estimating that up to 60% of its volume may be artificially inflated. While Polymarket has not publicly addressed these claims, the issue underscores the challenges of ensuring market integrity in a rapidly growing sector.

The expansion of prediction markets has drawn interest from major players across the sports and finance industries. Onyx Odds recently announced its own partnership with Polymarket to launch CFTC-regulated contracts. Meanwhile, NBA owners Alex Rodriguez and Marc Lore, through their firm Mojo, have entered the space via Kalshi, prompting a league review of their activities. These moves reflect a broader push by sports leagues and operators to navigate the regulatory gray areas surrounding prediction markets.

For PrizePicks, the partnership represents more than just a product expansion-it's a strategic response to a competitive market. With daily fantasy sports facing declining margins and regulatory headwinds, diversification into prediction markets offers a path to sustained growth. Ybarra acknowledged the risks but stressed that the company would curate offerings to ensure fairness and user trust.

As prediction markets gain mainstream acceptance, the collaboration between PrizePicks and Polymarket could set a precedent for how traditional sports betting platforms adapt to regulatory and consumer trends. The success of the partnership will hinge on addressing concerns around market manipulation while maintaining user engagement. For now, the move underscores a sector in flux, where blockchain technology and regulatory innovation are reshaping the landscape of sports and entertainment wagering.