Allwyn to buy majority stake in PrizePicks for $1.6bn

European lottery company Allwyn has revealed that it will acquire a 62.3% majority stake in daily fantasy sports operator PrizePicks, agreeing to an initial cash payment of $1.6 billion. This transaction marks a significant step in Allwyn’s ongoing expansion into the United States, demonstrating its ambition to diversify beyond traditional lottery operations and into the growing fantasy sports and sports betting markets.

The deal, which was advised by Moelis & Company, establishes an upfront enterprise value of $2.5 billion for PrizePicks. Depending on the performance of PrizePicks over the next three years and the achievement of certain agreed-upon metrics, an additional cash consideration could increase the total implied enterprise value to $4.15 billion.

Allwyn’s strategic entry into the US market

Allwyn originated in the Czech Republic and has since expanded its operations across Europe and North America. The company acquired Camelot, the operator of the UK National Lottery, and manages lottery operations in Illinois, United States. With this new acquisition, Allwyn is signaling a strategic shift toward high-growth, interactive entertainment markets, particularly in the US.

The acquisition of PrizePicks provides Allwyn with an established foothold in the North American DFS sector, which has seen significant growth since the mid-2010s. PrizePicks, founded in 2015, has positioned itself as a notable competitor to the longstanding duopoly of FanDuel and DraftKings, offering an accessible and simplified platform for fantasy sports enthusiasts.

Robert Chvatal, CEO of Allwyn, commented on the acquisition:
“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.”

PrizePicks’ growth and market positioning

PrizePicks has steadily grown its market share in North America despite regulatory challenges and opposition from tribal groups and other commercial operators. By breaking into a market traditionally dominated by FanDuel and DraftKings, PrizePicks has demonstrated the potential for innovation and differentiation in the DFS space.

Adam Wexler, Founder of PrizePicks, highlighted the company’s approach:
“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.”

The PrizePicks platform simplifies fantasy sports engagement, allowing players to make predictions without navigating complex traditional DFS structures. This model has resonated particularly with younger demographics, a segment that remains underserved by traditional lottery products.

Operational structure post-acquisition

As part of the acquisition, PrizePicks will continue operating as a standalone subsidiary within the broader Allwyn organisation. CEO Mike Ybarra, appointed in August 2024, will maintain operational control along with his current leadership team, ensuring continuity and the preservation of PrizePicks’ entrepreneurial culture.

Mike Ybarra emphasized the potential synergies from the merger:
“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.”

The integration strategy is designed to leverage Allwyn’s expertise in lottery operations and PrizePicks’ innovative DFS platform to cultivate a diverse, interactive player base. The merger reflects Allwyn’s broader strategy to appeal to younger consumers, particularly those interested in more participatory forms of sports entertainment.

Regulatory environment and compliance

Daily fantasy sports remain subject to scrutiny in various US jurisdictions. Despite regulatory challenges in states such as California, DFS activities continue to operate within a federally protected safe harbour. PrizePicks has proactively strengthened its compliance infrastructure, including the appointment of Todd Grossman as Director of Gaming Regulatory Compliance in July 2025. Notably, PrizePicks became the first DFS operator to receive official licensing in Puerto Rico, marking a significant milestone in regulatory recognition.

Allwyn, through its prior experience operating lotteries in Illinois, brings established regulatory knowledge and compliance expertise to the DFS space. This alignment ensures that the expanded operations can navigate the complex legal landscape governing online sports entertainment and betting in the United States.

Financial and strategic implications

The acquisition comes at a pivotal time for Allwyn. In Q2 2025, the company reported revenue of €2.27 billion ($2.67 billion), reflecting a 6% year-on-year increase. The strategic acquisition of PrizePicks allows Allwyn to diversify its revenue streams beyond traditional lottery operations and to tap into the rapidly growing DFS and sports betting markets.

By targeting younger, digitally engaged consumers, Allwyn is positioning itself to capitalize on a broader trend within North America where sports fans increasingly seek interactive and skill-based gaming experiences. This demographic shift represents a long-term growth opportunity for Allwyn, particularly as traditional lottery audiences skew older.

Looking ahead: expansion and innovation

The combined Allwyn-PrizePicks entity is expected to accelerate innovation in interactive sports entertainment. The merger allows for potential synergies in marketing, player engagement, and cross-promotion between lottery and DFS platforms. It also sets the stage for future product development, including new prediction models, game formats, and enhanced digital experiences.

As the US DFS and sports betting markets continue to evolve, Allwyn’s acquisition of PrizePicks positions the company to compete effectively while fostering a more inclusive and interactive player experience. This acquisition is not only a strategic expansion but also a signal of Allwyn’s commitment to shaping the future of skill-based sports entertainment.

Conclusion

Allwyn’s $1.6 billion acquisition of a 62.3% stake in PrizePicks represents a landmark investment in the North American DFS market. With PrizePicks maintaining operational independence, a strong leadership team, and a growing user base, the deal underscores Allwyn’s ambition to diversify into interactive sports entertainment and capture younger demographics. Both companies stand to benefit from shared expertise, market insights, and complementary growth strategies.

By combining Allwyn’s lottery and regulatory experience with PrizePicks’ innovative DFS platform, this acquisition may set a precedent for future European investment in the US sports entertainment sector.

FAQs

What stake has Allwyn acquired in PrizePicks?
Allwyn has acquired a 62.3% majority stake in PrizePicks for $1.6 billion.

What is the total enterprise value implied for PrizePicks?
The initial transaction implies an enterprise value of $2.5 billion, potentially rising to $4.15 billion based on performance milestones.

Will PrizePicks continue operating independently?
Yes, PrizePicks will operate as a standalone subsidiary within Allwyn’s organisation.

Who will lead PrizePicks after the acquisition?
CEO Mike Ybarra will retain operational control alongside his current leadership team.

Why is Allwyn entering the US DFS market?
The acquisition provides access to a younger, digitally engaged demographic and diversifies Allwyn’s portfolio beyond traditional lotteries.

How has PrizePicks performed in the US market?
PrizePicks has grown steadily, challenging the FanDuel and DraftKings duopoly and attracting a dedicated player base.

What regulatory measures apply to PrizePicks?
DFS remains federally protected in the US, and PrizePicks has strengthened compliance, including licensing in Puerto Rico.

What are the strategic benefits of this acquisition for Allwyn?
The merger allows Allwyn to expand into interactive sports entertainment, diversify revenue streams, and engage younger audiences.

Will there be further financial incentives in the deal?
Yes, contingent payments could increase PrizePicks’ total enterprise value to $4.15 billion if performance targets are met.

How does this acquisition impact the North American DFS landscape?
It introduces new competition, enhances product innovation, and offers a model for integrating lottery and DFS operations.