Allwyn completes $1.5B financing for PrizePicks acquisition

Allwyn International AG has officially announced the successful syndication of a USD 1.5 billion financing package to support its acquisition of PrizePicks, a prominent daily fantasy sports operator in North America. This significant development marks a strategic milestone in Allwyn’s ongoing growth strategy, reflecting both investor confidence and the company’s commitment to expanding its footprint in the United States.

The financing package is composed of two main components: a seven-year Term Loan B facility and a six-year Term Loan A facility. Allwyn Entertainment Financing (US) LLC serves as the borrower for the Term Loan B, which carries a principal amount of USD 1,000 million. Meanwhile, the Term Loan A facility is backed by a syndicate of international banks, totaling USD 500 million in principal. These facilities are structured to rank pari passu with the existing debt of Allwyn International AG, Allwyn Entertainment Financing (UK) Plc, and Allwyn Entertainment Financing (US) LLC under the existing intercreditor agreement.

The Term Loan B facility bears interest at SOFR plus 250 basis points, reflecting competitive market conditions and investor confidence in Allwyn’s financial stability. The proceeds from these newly arranged facilities, in conjunction with cash reserves on the balance sheet and other existing credit arrangements, will be utilized to fund the planned acquisition of PrizePicks, as well as associated fees and expenses.

Strategic rationale for the acquisition of PrizePicks

On 22 September 2025, Allwyn announced that it had entered into a definitive agreement to acquire approximately 62.3% of PrizePicks, which is widely recognized as the largest daily fantasy sports operator in North America. The acquisition involves an initial cash consideration of USD 1.6 billion, subject to customary post-closing adjustments. These adjustments take into account the expectation of no cash or debt at closing, ensuring the transaction reflects accurate financial conditions at the time of completion.

This acquisition aligns with Allwyn’s broader strategy to expand its presence in the United States market, which remains a highly competitive and rapidly growing sector within the global gaming and entertainment industry. By acquiring a controlling stake in PrizePicks, Allwyn not only strengthens its US operations but also positions itself to capitalize on future growth opportunities in daily fantasy sports and related interactive gaming sectors.

The transaction is expected to close in the first quarter of 2026, contingent upon the satisfaction of several closing conditions. These include obtaining necessary notifications and approvals from applicable regulatory authorities, ensuring full compliance with all legal and industry requirements.

Investor confidence and market reception

Kenneth Morton, Chief Financial Officer of Allwyn, commented on the successful syndication of the financing:

“I am very pleased to have successfully syndicated our largest offering to date in the USD institutional term loan B market, demonstrating continued investor support for the Allwyn credit and confidence in our outlook.”

This statement underscores the strong reception of the financing among institutional investors. The successful syndication reflects a broader trend of investor confidence in Allwyn’s growth strategy and operational stability. By securing USD 1.5 billion through structured term loans, Allwyn demonstrates its ability to mobilize substantial financial resources to support strategic acquisitions, even within complex and competitive market environments.

Details of the financing structure

The USD 1.5 billion financing package is strategically structured to optimize both cost and flexibility. Key elements of the financing include:

• Term Loan B Facility: Seven-year loan totaling USD 1,000 million, with an interest rate of SOFR plus 250 basis points. Allwyn Entertainment Financing (US) LLC is the borrower.
• Term Loan A Facility: Six-year facility totaling USD 500 million, provided by a syndicate of banks.
• Ranking and security: Both facilities rank pari passu with existing debt, ensuring consistent treatment under the intercreditor agreement.
• Use of proceeds: Funding the acquisition of PrizePicks, covering related fees and expenses, and complementing cash already on the balance sheet.

This financing structure offers Allwyn the necessary capital to complete the PrizePicks acquisition while maintaining financial prudence. By leveraging both term loan A and term loan B facilities, the company can balance cost, duration, and investor participation, thereby reducing refinancing risk and strengthening its overall capital position.

Implications for Allwyn’s US expansion

The acquisition of PrizePicks represents a pivotal moment in Allwyn’s US expansion strategy. The North American daily fantasy sports market has experienced substantial growth over recent years, driven by increasing consumer interest in interactive gaming, fantasy sports betting, and digital entertainment platforms. By acquiring a controlling interest in PrizePicks, Allwyn positions itself at the forefront of this emerging market.

Strategically, this acquisition allows Allwyn to:

• Strengthen its presence in the US interactive gaming sector
• Leverage PrizePicks’ existing customer base and operational expertise
• Expand its product offerings and technological capabilities
• Enhance its competitive position within the broader global gaming landscape

In addition, the acquisition reflects Allwyn’s commitment to long-term growth and shareholder value creation. By strategically targeting high-potential assets such as PrizePicks, the company aligns its financial strategy with market opportunities, while carefully managing regulatory compliance and operational risk.

Risk management and regulatory compliance

Allwyn has emphasized the importance of regulatory compliance and risk management in the context of this acquisition. The completion of the transaction is contingent upon approvals from relevant regulatory authorities, ensuring that all legal and compliance requirements are satisfied prior to closing.

By adhering to rigorous regulatory standards, Allwyn mitigates potential legal and operational risks, while maintaining a reputation for integrity and responsible business conduct. The company’s approach includes:

• Comprehensive due diligence on PrizePicks’ operations, financials, and regulatory standing
• Ensuring intercreditor agreements and debt ranking remain consistent and enforceable
• Aligning financing and acquisition structures with best practices in corporate governance

These measures contribute to a low-risk acquisition process, safeguarding both Allwyn and its investors while enabling sustainable growth in a highly regulated market.

Strategic growth outlook

Looking ahead, the acquisition of PrizePicks is expected to significantly enhance Allwyn’s growth prospects. By integrating PrizePicks’ platform and expertise, Allwyn can pursue several strategic objectives:

• Expansion of product offerings to include innovative fantasy sports experiences
• Increased market penetration across the US, leveraging PrizePicks’ brand recognition
• Strengthening technological capabilities to support scalable digital gaming solutions
• Potential future acquisitions and partnerships within the interactive gaming sector

According to Kenneth Morton, CFO of Allwyn:

“We are looking forward to the closing of the planned PrizePicks acquisition, an exciting step in our growth strategy and expansion of our footprint in the US market.”

These statements highlight Allwyn’s forward-looking approach and its commitment to leveraging strategic acquisitions for long-term competitive advantage.

Market and investor implications

The successful syndication of the USD 1.5 billion financing package is likely to have positive implications for both the market and current investors. By securing substantial funding from a broad investor base, Allwyn demonstrates robust financial credibility and market trust.

This financing also signals confidence in the broader growth of the daily fantasy sports and interactive gaming market. Investors and analysts may view the acquisition as a strategic move to capitalize on an evolving industry landscape, while positioning Allwyn as a major player in the US market.

Conclusion

The syndication of USD 1.5 billion in acquisition financing for PrizePicks represents a major milestone for Allwyn International AG. Through careful structuring of term loan facilities, strategic alignment with regulatory requirements, and clear communication with investors, Allwyn has successfully positioned itself to expand its operations in the United States.

The completion of the PrizePicks acquisition will enhance Allwyn’s product portfolio, market reach, and technological capabilities, contributing to long-term growth and shareholder value. This development underscores the company’s ability to execute large-scale strategic transactions with a disciplined, legally compliant, and investor-focused approach.

FAQs

What is the total financing amount Allwyn secured for the acquisition of PrizePicks?
Allwyn secured USD 1.5 billion through a combination of term loan A and term loan B facilities.

Who is the borrower of the Term Loan B facility?
Allwyn Entertainment Financing (US) LLC is the borrower of the USD 1,000 million Term Loan B facility.

What is the expected closing date of the PrizePicks acquisition?
The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals.

What percentage of PrizePicks is Allwyn acquiring?
Allwyn is acquiring approximately 62.3% of PrizePicks.

What is the interest rate on the Term Loan B facility?
The Term Loan B facility carries interest at SOFR plus 250 basis points.

How will the financing be used by Allwyn?
Proceeds will fund the acquisition of PrizePicks and cover associated fees and expenses.

What role do regulatory authorities play in the acquisition?
Regulatory approvals are required to ensure legal compliance and the transaction can be completed safely.

Why is this acquisition significant for Allwyn?
It strengthens Allwyn’s presence in the US market and supports long-term growth in daily fantasy sports.

How does this financing affect existing debt?
The new term loans rank pari passu with existing debt under the intercreditor agreement.

What is the strategic goal of Allwyn’s acquisition of PrizePicks?
The acquisition aims to expand product offerings, market reach, and technological capabilities in the US market.