PrizePicks launches digital trading card packs with instant buyback feature

PrizePicks, which describes itself as North America’s largest daily fantasy sports and player prediction platform, has entered the trading card market with a product that offers to buy cards back at 100% of their stated fair market value.

Product structure

According to the company’s official product information, each pack contains one real physical trading card stored in a secure facility. Packs cover basketball, football and Pokémon, with prices ranging from $1 to $2,500.

Customers have three days to request shipment or sell the card. If they take no action within that period, the card is automatically sold back to PrizePicks at its original stated fair market value, with the proceeds added to their PrizePicks balance. The balance can subsequently be used across eligible PrizePicks products, including purchasing additional packs or participating in fantasy contests.

Valuation and industry comment

According to PrizePicks, these valuations are informed by third-party market data. However, its publicly described process does not explain precisely how individual market prices are weighted or how the final FMV is calculated.

Matt Cepulis, founder of iGaming marketing agency 3betmedia, stated that once a platform offers to buy a card back for around 80% of its value seconds after opening the pack, it stops looking like a collectible and starts to look like paying for a chance at a cash prize.

Sports business reporter Darren Rovell stated that the area of repacks that will be heavily scrutinized by law, especially in California, are the buybacks, noting that traditional packs don’t offer buybacks.

There is no suggestion in this report that PrizePicks has engaged in wrongdoing or that its Packs product has been found to constitute unlawful gambling.