FanDuel Picks and the Hype Around P2P Fantasy Apps

With the launch of FanDuel Picks, the juggernaut US sportsbook has now opened its doors to P2P fantasy betting. Now, FanDuel has an online casino, fantasy sports platform, sportsbook, racebook, Faceoff, TVG, and FanDuel Picks. But the addition of FanDuel Picks is no passing trend. It reflects a much broader shift in America’s sports betting landscape.

In August 2025, PrizePicks also moved its entire daily fantasy sports to a peer to peer format. And Underdog Fantasy launched a P2P game called Champions just a month before, in July.

Peer to peer fantasy is more than just an extension of sports betting or DFS pick’em games. The potential revenue, newer market, and contentious legal stance on these platforms is more than enough to turn heads.

California’s AG Releases Statement on DFS Legality

The main trigger behind UnderDog and PrizePicks launching P2P apps was a statement from California’s AG, Rob Bonta in July. The Attorney General released a legal opinion in which he claimed DFS and Pick’Em games should be interpreted as a form of sports betting. Sports betting, which, is illegal in California.

DFS platforms have operated in the Golden State for over a decade now, but the games and DFS products have evolved greatly in the past 2-3 years. Instead of those classic DFS fantasy lineups, we have Pick’Em games, parlay-type lineups, and player picks that aren’t a million miles away from player props bets at sportsbooks.

California has never warmed to sports betting, and there haven’t been any prominent proposals to legalize online betting in the state. Rob Bonta has made it clear that he wants to enforce a statewide ban on these gaming products. Right now, there are several operators who provide DFS products in California, including Underdog Fantasy, PrizePicks, Betr, and Kutt.

What Does Bonta’s Legal Opinion Mean

As a legal opinion, this is not part of California law, although the AG suggested that DFS and Pick’Em games violate the California Penal Code section 337a. However, the Governor of California, Gavin Newsom, didn’t agree with Bonta’s interpretation of the law. The Fantasy Sports & Gaming Association also suggested that it was out of step with the same opinions in other jurisdictions across the US.

While Bonta’s statement does not change the laws, it could set the tone for the status of DFS operators in California in the near future. And it wouldn’t stop there either, as California is not just a massive customer base for DFS apps, but it could also prove highly influential. States like Florida and Michigan have also questioned the Pick’Em games. So however the legal scenario unfolds in California, it could have a direct knock on effect on many other states and markets.

FanDuel Picks Launch and What to Expect

At the end of August, FanDuel released its P2P fantasy sports app, FanDuel Picks. The app uses Pick’Em style games, with player projections, and is available initially in 17 states. It is not available in California, but it will be available in:

• Alabama
• Alaska
• Georgia
• Minnesota
• Missouri*
• Oklahoma
• Texas
• Utah
• Wisconsin

* Missouri is set to legalize sports betting in Dec, 2025

It will also be live in the states with legal sports betting:

• Arkansas
• Nebraska (only retail)
• New Hampshire
• New Mexico (only retail)
• North Dakota (only retail)
• Oregon
• Rhode Island
• South Dakota (only retail)

Though it is important to note, that FanDuel Sportsbook does not operate in any of these 17 states. So the FanDuel Picks is basically a way for the operator to access players in those 17 states.

Understanding the Nuances of DFS and P2P

DFS games are an alternative for sports bettors, but they don’t work quite in the same way as conventional sports bets. Instead of picking out wagers from betting markets and staking them, you are assembling Pick’Em lineups. These usually involve player projections, like your Over/Under bets, but these have Higher/Lower lines. For instance, you get a projection like Stephen Curry to Score 20 points. You can pick the Higher (21+ points) or the Lower (19 or fewer points) lines, and then add it to your lineup.

At PrizePicks, for example, you can make a lineup from 2 to 6 picks. At FanDuel Picks, you would have to pick between 3 to 6 player picks. The number of picks you can combine into a single lineup very much depends on the platform and the type of competition you are entering.

Next, in standard Pick’Em (non P2P), you are playing against the house. This means, you compete directly against the operator, and play against a fixed chart. If you win a certain number of predictions, or the entire ticket, you get fixed payouts. The payouts are determined by a number of factors. There are no calculated odds on DFS platforms. But instead, you get multipliers based on the risk factor. And the number of legs you win, and their multipliers, determines the resulting payout.

But in P2P, the format of competing changes entirely.

DFS Pick’Em P2P – The Skill Based Games

From a legal aspect, operators are leaning towards calling these skill based products, because then they wouldn’t fall under the same legal category as sports betting.

The idea is that you don’t compete against the house, but your lineup is measured against other players. In other words, your peers. You form that same lineup, but then instead of assigning a stake, you have to pay an entry to a contest.

You will be matched up in groups with peers, who have comparable picks and have the same level of experience in DFS picking as you. The lineups are rated through leaderboards, and the payouts are handled accordingly. The P2P fantasy operators will take a commission, or a rake, from the paid entries. There is no juice, or inflated odds. Just simply a points system, leaderboards within the groups, and payouts based on the number of entries and leaderboard conditions.

So instead of having to get your picks right, your job at these P2P fantasy apps is to beat the competition, and get a better score in the leaderboards. Thus, the founding principle is not the same as sports betting, but it has a more “skill-based” core model.

Why P2P Fantasy is Attractive to Operators

For operators in general, there are several benefits to P2P fantasy platforms, including:

• Greater State Availability
• Lower Costs and Taxation
• Alternative Engagement Methods
• Potential for Revenue

P2P fantasy apps are in something of a legal gray area, where they are not specifically DFS products or sports betting. Lawmakers know of these sites and platforms, but as they are relatively newer to the scene than DFS (going since 2010s) and traditional online sports betting platforms, they have not really been assigned into any legal brackets as such.

This means they can operate in states where sports betting and real money DFS platforms are strictly illegal. Plus, in the states with legal sports betting, P2P fantasy does not fall into the same tax bracket. While these platforms do not have a house, and therefore house edge, they do not make money through your losing bets. Instead, they take a small commission from each entry. With more favorable taxation and a more transparent revenue model, P2P fantasy can be hugely profitable for operators.

The other aspect to consider is the engagement methods the P2P Fantasy platforms use. They need players to engage with each other and opt into contests or arena games. Therefore, there is a greater emphasis on bringing in social features and extending the community to social media channels. For the startup P2P fantasy operators, marketing is essential. But for the likes of FanDuel, who have established and reputable brands to fall back on, it is an experiment that could pay off in big ways.

A Niche or the Next Frontier of US Sports Betting?

These peer betting fantasy products are still quite a niche market, despite the rise in popularity and bigger brands like FanDuel getting in on the action. Incidentally, FanDuel also have a predictions market platform in the pipeline, having recently formed a partnership with CME Group. P2P fantasy apps like Betr, PrizePicks, Epick Fantasy Sports, Underdog Fantasy, and several others are definitely starting to gain the attention of lawmakers too.

But as for whether these become more mainstream, only time will tell. Because there are many alternatives to conventional sports betting right now in the US. Real money DFS platforms are legal in almost all states except for Washington, Hawaii, Montana, Nevada and Idaho. But then there are sports betting products such as sweepstakes sportsbooks, betting exchanges, and prediction markets that have found legal loopholes to reach bettors in states where sports betting has not been legalized.

One thing’s definite. With FanDuel Picks gaining approval and launching in 17 states, it shows that the bigger players are definitely interested. Which in turn could propel the P2P fantasy betting platforms momentously in the months to come.