Allwyn acquires majority stake in PrizePicks

Multi-national lottery firm, Allwyn International, will purchase a 62.3% stake in US daily fantasy sports giant, PrizePicks.

Allwyn International has moved to acquire a majority stake of the US daily fantasy sports (DFS) giant, PrizePicks.  

While the lottery multi-national is active in the US through Allwyn North America, this move will mark the firm’s first entry into the country’s sports and entertainment market.

The deal is expected to close during the first half of 2026 and has an initial cash consideration of $1.6bn, although depending on PrizePicks’ performance, an additional $1bn will be paid out to the selling shareholders, which could increase the implied enterprise value to $4.15bn.  

The shape of the acquisition will see PrizePicks continue to operate as a standalone brand led by Mike Ybarra, who joined the fantasy sports company last year following a period at Activision Blizzard.  

Alongside Ybarra, the rest of the PrizePicks leadership team will remain in place and Founder Adam Wexler has said: “Now, with Allwyn’s backing, we’ll accelerate our vision and bring our games to even more players on a much bigger stage.”  

Recent appointments on the Allwyn side have steered the executive make-up of the company more pointedly towards the betting industry and the USA – Kresimir Spajic, for instance, was drafted in as CEO of the new global division, Allwyn Digital, in August 2025 having just wrapped up a two-year spell with Betfred USA.  

Robert Chvatal, Allwyn CEO, added: “This is a significant European investment, and Allwyn’s biggest in the US 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.” 

Having nearly gone out of business during the Covid-19 pandemic, PrizePicks has experienced huge growth ever since, despite opposition to the vertical in certain US jurisdictions and fierce competition in FanDuel and DraftKings. 

In the 12 months leading up to June 2025, the company posted an adjusted EBITDA of $339m, emphasising the reversal in fortunes – for financial advice on this landmark deal, Prizepicks counted on the exclusive services of global investment bank, Moelis and Company. 

Recent months have already brought significant change for the company, both in terms of personnel and product, having transitioned all of its daily fantasy sports operations in the US to a new peer-to-peer gameplay model and appointed Todd Grossman as Director of Gaming Regulatory Compliance.

Both moves, arguably, are designed to have the effect of endearing the brand to regulators, who had been placing the previous ‘pick ’em’ model under consistent scrutiny – these mitigations may then have soothed any concerns Allwyn might have harbored about the long-term legality of the vertical.

Good to know: The combining of a lottery powerhouse with a major player from a different gambling vertical has similar hallmarks to Intralot’s recent $1.8bn purchase of Bally’s International Interactive, expected to close in Q4 2025 

Karel Komarek, Allwyn Founder and Chair, said: “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.”

Allwyn took over operation of the Illinois lottery when it bought out Camelot who had managed it previously – now through PrizePicks, the company will have access to 45 states instead of just one and can supercharge its North American efforts.

There is hope that strong synergies between lottery and DFS around the cultivation of loyal player bases could fuel high-growth long into the future.

Stepan Dlouhy, Allwyn Chief Investment Officer, commented: We took the first step in 2023 with the acquisition of the operator of the Illinois lottery and were pleased to subsequently acquire a majority stake in IWG, which has a strong footprint in the United States, in 2024. Today, we announce the next major milestone on our journey. PrizePicks fits perfectly into our vision of shaping the future of mass market casual digital entertainment and is poised for further strong growth.” 

Rory Calland

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