Global lottery giant Allwyn International announced that it has entered into a definitive agreement to acquire a majority stake in North America-facing daily fantasy sports (DFS) operator PrizePicks.
Allwyn to Buy a Majority Stake in PrizePicks
In its announcement, Allwyn said that it will purchase a 62.3% stake in PrizePicks for an initial cash consideration of $1.6 billion. This figure values the entire PrizePicks business at approximately $2.5 billion.
The agreement also outlines additional cash consideration of up to $1 billion, depending on PrizePicks’ performance over the next three years. This would increase the implied enterprise value to a maximum of $4.15 billion.
Even as a part of Allwyn, PrizePicks will continue to operate as a standalone brand. The DFS company’s CEO, Mike Ybarra, and his team will continue to head the business. At the same time, co-founder Adam Wexler will retain his board position.
Allwyn added that it hopes to close the deal in the first half of 2026 and noted that the transaction is still subject to the satisfaction of certain closing conditions.
The Lottery Giant Wants to Penetrate the US Market
Allwyn described PrizePicks as a DFS leader and innovator. The former company praised the latter business’s commitment to its players and constant introduction of new engaging features. Allwyn also lauded PrizePicks for having fans in more than 45 US jurisdictions and being one of the fastest-growing businesses in its sector, achieving double-digit annual revenue growth and strong profitability.
Allwyn noted that the acquisition will allow it to make a foray into the world of US sports entertainment. Although Allwyn has an existing partnership with the Illinois Lottery, it has yet to tap into the opportunities offered by the broader US market.
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.
Allwyn statement
Allwyn added that it hopes to pair its own capabilities with PrizePicks’ established position to reach more fans and offer even better experiences.
Executives Hailed the Deal
Allwyn’s founder and chair, Karel Komarek, commented on the transaction, saying that it will “continue to drive Allwyn’s momentum,” allowing it to grow its US footprint by acquiring a local visionary.
PrizePicks has established its credentials as an industry pioneer, revolutionizing 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.
Karel Komarek, founder & chair, Allwyn
Allwyn’s CEO, Robert Chvatal, was likewise pleased with the deal. He said that this is Allwyn’s biggest US investment so far and was similarly excited about the opportunity to work with the PrizePicks team and continue growing the business.
Allwyn’s chief investment officer, Stepan Dlouhy, added that PrizePicks “fits perfectly” into Allwyn’s vision of “shaping the future for mass media casual digital entertainment.”
PrizePicks’ CEO, Mike Ybarra, called the transaction the start of a new chapter for the company and its 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.
Mike Ybarra, CEO, PrizePicks
PrizePicks co-founder Adam Wexler added that Allwyn’s backing will accelerate his company’s vision, allowing it to reach even more players with its games.