Allwyn International AG, the lottery-led gaming entertainment company, is buying 62.3 per cent of PrizePicks, the largest daily fantasy sports operator in North America, for $1.6bn.
If PrizePicks achieves certain performance metrics over the next three years, additional cash consideration under the agreement could increase the implied enterprise value to a maximum of $4.15bn.
Since it was founded in 2015, PrizePicks has become the leader in DFS through industry-leading product innovation and a deep commitment to its player community. PrizePicks has offered fans new ways to engage with their favourite sports – including free-to-play games and a peer-to-peer tournament-style offering, which enables fans to test their skills against other players. It has attracted a passionate fanbase of millions of monthly active users across more than 45 United States jurisdictions and has become one of the fastest-growing DFS operators in the country. The company has consistently delivered high double-digit annual revenue growth and strong profitability.
For Allwyn, the transaction is a unique opportunity to enter the strategically important sports and entertainment industry in the United States, expanding its business in the country beyond its existing operation of the Illinois Lottery. With a shared belief in the power of technology and commitment to responsible play and community impact, PrizePicks is highly complementary to Allwyn’s expanding portfolio in casual entertainment – in line with its vision to become the world’s leading gaming entertainment company.
With Allwyn’s scale and resources, PrizePicks will have the support to expand and innovate faster, reaching more fans than ever before.
PrizePicks will operate as a standalone brand within Allwyn, led by its CEO Mike Ybarra and the existing leadership team who will be retaining the majority of their existing ownership interest. The company’s executive team brings deep expertise from the video game and entertainment industries, with a proven track record of building products that resonate with player communities. Adam Wexler, PrizePicks’ co-founder, will continue to serve as a member of the PrizePicks Board of Directors.
The transaction is anticipated to close in the first half of 2026, subject to the satisfaction of certain closing conditions, including the notification to and/or approvals from applicable regulatory authorities. Allwyn expects to finance the purchase price using a combination of cash on balance sheet and debt financing.
PrizePicks generated Adjusted EBITDA of $339m in the 12 months to June 2025, achieving revenue growth of over 60% year-on-year and delivering strong cash flow generation over the same period.
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.”
Robert Chvatal, Allwyn CEO, added: “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.”
Stepan Dlouhy, Allwyn Chief Investment Officer, said: “The acquisition of PrizePicks underscores our ability to execute on our ambitious investment strategy. 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.”
Mike Ybarra, CEO of PrizePicks, said: “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.”
Adam Wexler, PrizePicks Founder, said: “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 acquisition of PrizePicks comes at an exciting and transformative time for Allwyn. In 2024, the company completed the acquisition of a 70 per cent stake in leading e-instants supplier Instant Win Gaming and announced an intention to acquire a controlling interest in Novibet, the online sports betting and gaming operator. Alongside the announcement of new global partnerships with Formula 1 and McLaren in early 2025, these transactions increase Allwyn’s exposure to fast-growing and opportunity-rich markets– to the benefit of players and communities alike.
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Allwyn International AG, the lottery-led gaming entertainment company, is buying 62.3 per cent of PrizePicks, the largest daily fantasy sports operator in North America, for $1.6bn. If PrizePicks achieves certain performance metrics over the next three years, additional cash consideration under the agreement could increase the implied enterprise value to a maximum of $4.15bn. Since…
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