With a track record of accelerated growth, daily fantasy sports operator PrizePicks is setting lofty goals after lottery company Allwyn announced Monday it is acquiring the majority of the North American business.
Key Takeaways
- PrizePicks and Allwyn aim to create the world’s top gaming company.
- The DFS operator is taking a close look at entering prediction markets.
- PrizePicks continues to evolve its fantasy offerings in the U.S.
“I think Allwyn is an international giant in the gaming space. PrizePicks is in the United States only right now, but we feel like we’re in a great position,” PrizePicks CEO Mike Ybarra told Covers on Monday. “You combine those two together, and our ambition is to be the No. 1 gaming company in the world.”
High expectations propelled PrizePicks from a storybook start-up founded by Adam Wexler and Jay Deuskar 10 years ago to a gaming company now valued at $2.5 billion following Allwyn’s 62.3% purchase. Operating in 45 jurisdictions, PrizePicks employs over 600 people.
“I think that’s the quintessential tech story,” Deuskar said during the interview with Covers. “These young, hungry, kind of naive people come together and are passionate about a mission and a vision, and to see that actualized to some degree today and with the validation from an international company like Allwyn, there’s definitely a lot of satisfaction and elation and appreciation for the journey that we’ve been on.”
DFS is how PrizePicks began this path, but it’s not where the company plans on staying. Ybarra said early conversations with Allwyn revealed that both businesses have a similar culture and ambition.
“We don’t want to be a bolt-on to another company,” Ybarra said. “We want to be meaningful. We’ll essentially run the United States business for Allwyn. That’s significant. That gives us a lot of accountability.”
From product to platform
What that entails is future expansion into a more reaching type of entertainment. It doesn’t mean PrizePicks will necessarily look to take DFS products global, unless that eventually makes sense. Instead, it’s more about a business transition.
“Jay and Adam have always had a vision to take prediction beyond sports,” Ybarra said. “And while sports will always be our highest priority, the idea of cultural events, music, movies, streamer boxing matches, and all these things that drive a lot of excitement - we want to make sure we can give people entertainment in the broadest sense.”
Deuskar called DFS the “bread and butter,” but he’s looking to “turn a product into a platform.”
“Frankly, that is something that Allwyn really latched onto,” Deuskar said. “We speak the same language in terms of the vision that we see for this transition from purely a DFS product to more of a broader entertainment platform.”
Eyeing prediction markets
Ybarra and Deuskar used two key words: “prediction” and “platform.” Does that mean PrizePicks is eying the controversial prediction market space that’s causing a stir across the industry?
“It’s obviously a dynamic situation,” Ybarra said. “There are a lot of adversarial views from some of the states on what it would mean to go into prediction. I feel like every week there’s something new that’s happened in this space, but I also see it as a big opportunity. We’re not ignoring it. We’re definitely looking at it.”
Prediction platforms like Kalshi are federally regulated, but they are running into legal battles in jurisdictions with legal sports betting. Underdog, one of PrizePick’s biggest competitors, recently partnered with Crypto.com to begin offering outcomes on NFL and college football games.
Ybarra says PrizePicks continues to receive feedback from states and is closely monitoring that space in the industry.
Evolving DFS
The union with Allwyn is going to give PrizePicks some new resources, thousands of talented Europeans who already work in the space, a bigger look at the prediction market, and a future road map for broader platforms. The deal is expected to close in the first half of 2026.
In the meantime, Deuskar said PrizePicks is "laser focused" on launching more engaging products heading into next year after 2025 has been about "pulling away" from competitors.
PrizePicks is planning to add more social aspects to the DFS peer-to-peer contests. The gaming operator stopped offering “against the house” games during the summer. Ybarra said the decision had nothing to do with Allwyn’s acquisition.
Instead, PrizePicks wants to give customers more of an old-school fantasy format, complete with social engagement, trash-talking, and lineup sharing. PrizePicks introduced profiles before the NFL season so that users can share lineups that can instantly be used by others.
The gaming operator also believes part of its future is tied to free games, which will enhance the brand even if users never participate in entry-fee contests.
“That’s going to be the new top of the funnel for us,” Ybarra said. “We’re giving them great entertainment. Even if they’re a free-to-play person, that’s a very valuable customer for us.”
