A multinational lottery company has made a massive acquisition of a popular daily fantasy sports operator.
Allwyn International AG announced a "definitive agreement” on Monday to make a majority purchase of Atlanta-based PrizePicks, obtaining 62.3% of the DFS site. PrizePicks will receive a $1.6 billion initial cash consideration, and the operator anticipates innovative expansion through Allwyn’s global resources.
Key Takeaways
- Allwyn is making a major U.S. expansion with the majority takeover of PrizePicks
- The DFS company is valued at $2.5 billion, with room to grow to over $4 billion
- The deal is expected to close in the first half of 2026
“Today marks the start of an exciting new chapter for PrizePicks and our growing community of players,” PrizePicks CEO Mike Ybarra said. “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."
Rising valuation
The deal implies that PrizePicks is valued at $2.5 billion, and if the DFS operator hits certain metrics outlined in the agreement over the next three years, an implied valuation of $4.15 billion could increase the company’s cash consideration.
Shareholders will receive “further performance-contingent payments” of up to $1 billion in 2029 based on that increased valuation. The deal is expected to close in the first half of 2026.
"This is a significant European investment, and Allwyn's biggest in the United States to date,” Allwyn CEO Robert Chvatal said. “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."
Profitable picks company
PrizePicks currently offers DFS games in 45 jurisdictions, including many states that don’t offer legal sports betting, like the lucrative California. The company has run into regulatory issues in some jurisdictions, and recently announced it was removing all “against the house” contests in favor of peer-to-peer “Arena” DFS games.
According to Allwyn’s release, PrizePicks generated $339 million in Adjusted EBITDA from June 2024 to June 2025. Revenue grew 60% year-over-year and delivered “strong cash flow generation over the same period.”
"From day one, we set out to create a more accessible style of fantasy sports that could appeal to casual players,” Adam Wexler, PrizePicks Founder, said. “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."
US expansion
Allwyn is taking a major step in North America with this majority takeover. The lottery company is currently only doing business in Illinois and Michigan, and it has a 70% stake in Instant Win Gaming, which it acquired in 2024. Allwyn is also the operator for The National Lottery in the U.K., and owns lottery brands in other European countries.
Now, it’s getting into the DFS industry, which has rapidly grown across the U.S. over the last decade.
“The acquisition of PrizePicks underscores our ability to execute on our ambitious investment strategy,” Allwyn Chief Investment Officer Stepan Dlouhy said.
The United States gaming and entertainment market has always been a compelling opportunity, and our focus has been on finding the right entry points. 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.”
