In a landmark transaction set to reshape the US sports entertainment landscape, European lottery giant Allwyn International has announced a definitive agreement to acquire a majority stake in PrizePicks, the largest and fastest-growing daily fantasy sports (DFS) operator in North America.
Allwyn will purchase an approximately 62.3% stake for an expected initial cash consideration of $1.6 billion, establishing an upfront enterprise value of $2.5 billion for the DFS leader.
PrizePicks: A DFS Success Story
Since its founding in 2015, PrizePicks has distinguished itself through relentless product innovation and a deep-seated commitment to its player community.
The company has successfully broadened the appeal of fantasy sports by offering fans new ways to engage with their favorite leagues, including free-to-play games and a unique peer-to-peer tournament-style offering. This accessible and engaging model has attracted a passionate fanbase of millions of monthly active users across more than 45 US jurisdictions.
The company’s financial performance has been equally impressive, consistently delivering high double-digit annual revenue growth and strong profitability. In the 12 months leading up to June 2025, PrizePicks generated an Adjusted EBITDA of $339 million.
A Strategic US Entry for Allwyn
For the European lottery giant Allwyn, this acquisition represents a unique and powerful entry into the strategically vital US sports and entertainment market, significantly expanding its business in the country beyond its existing operation of the Illinois Lottery. With a shared belief in the power of technology and a commitment to responsible play, PrizePicks is viewed as highly complementary to Allwyn’s growing portfolio in casual entertainment.
Following the acquisition, PrizePicks will continue to operate as a standalone brand, led by its CEO Mike Ybarra, and the existing leadership team, who will retain the majority of their ownership interest.
Executive Perspectives on the Landmark Deal
Karel Komarek, Allwyn Founder and Chair, stated that the acquisition will continue the company’s momentum.
This acquisition will continue to drive Allwyn’s momentum and expand our business in the United States. PrizePicks has established its credentials as an industry pioneer, revolutionising the way fans engage with the athletes they love, making the contests more thrilling and immersive. We are excited to work with PrizePicks to shape the future of this new frontier in casual entertainment.
Robert Chvatal, Allwyn CEO, highlighted the significance of the investment.
This is a significant European investment, and Allwyn’s biggest in the United States to date. PrizePicks is an entrepreneurial company that is empowering a new generation of fans who want to engage with their favourite sports and athletes, not just spectate. PrizePicks has created an intuitive platform that simplifies the process of making skilled predictions. I look forward to partnering with Mike and the PrizePicks team to support the growth of the business.
Stepan Dlouhy, Allwyn Chief Investment Officer, described the deal as a major milestone.
The acquisition of PrizePicks underscores our ability to execute on our ambitious investment strategy. The United States gaming and entertainment market has always been a compelling opportunity, and our focus has been on finding the right entry points. Today, we announce the next major milestone on our journey.
Mike Ybarra, CEO of PrizePicks, called the deal an exciting new chapter for the company.
Today marks the start of an exciting new chapter for PrizePicks and our growing community of players. There has never been a more electrifying time to shape the future of fan-first entertainment. By joining forces with Allwyn, a like-minded and disruptive company that shares our passion for bold product innovation, we will accelerate our mission to make our games more interactive, engaging and rewarding for fans everywhere.
Adam Wexler, PrizePicks Founder, reflected on the company’s journey and future.
From day one, we set out to create a more accessible style of fantasy sports that could appeal to casual players. As the industry evolved, PrizePicks was the first to go all-in on the simplest prediction model and take it to scale, reshaping how fans engage with fantasy sports. Now, with Allwyn’s backing, we’ll accelerate our vision and bring our games to even more players on a much bigger stage.
Transaction Details and Future Outlook
The agreement includes performance-contingent payments of up to approximately $1.0 billion in 2029, which could raise the implied enterprise value to a maximum of $4.15 billion. The transaction is anticipated to close in the first half of 2026, subject to customary regulatory approvals. Allwyn expects to finance the purchase using a combination of cash on its balance sheet and new debt financing.
This move is the latest in a series of transformative acquisitions for Allwyn, including deals for Instant Win Gaming and a controlling interest in Novibet, as it solidifies its position as a global gaming entertainment leader.
