- Allwyn will acquire 62.3% of PrizePicks for $1.6 billion
- The transaction implies a PrizePicks valuation of $2.5 billion
- Additional cash considerations can raise PrizePicks implied valuation to $4.15 billion over the next three years
Allwyn, a lottery-led gaming entertainment company, is set to acquire a majority share of one of the largest daily fantasy sports companies in North America.
Allwyn is set to acquire a 62.3% stake of PrizePicks for an expected initial price of $1.6 billion, according to a PrizePicks release. Based on the $1.6 billion price tag for the majority stake in the company, PrizePicks has an implied upfront enterprise value of $2.5 billion.
The implied valuation could rise to $4.15 billion over the next three years if PrizePicks meets certain performance metrics.
Massive investment in PrizePicks
According to the company, PrizePicks will now have the support to expand and innovate faster, reaching more users as it continues to operate as a standalone brand.
“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,” PrizePicks CEO Mike Ybarra said.
Allwyn now stands to enter the U.S. sports and entertainment industry through the acquisition, expanding its U.S. business beyond its existing operation of the Illinois Lottery. In 2024, the company completed the acquisition of a 70% stake in e-instants supplier Instant Win Gaming and announced an intention to acquire a controlling interest in Novibet, the online sports betting and gaming operator.
Allwyn also announced global partnerships with Formula 1 and McLaren in early 2025.
“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,” Allwyn CEO Robert Chvatal said.
Further performance-based payments
The expected cash consideration of $1.6 billion for the majority stake of PrizePicks could grow by another $1 billion in 2029 if the company can reach further performance-contingent milestones. If reached, this would increase PrizePicks implied enterprise value to a max $4.15 billion.
The transaction is expected to close in the first half of 2026.
According to the report, PrizePicks generated adjusted EBITDA of $339 million in the 12 months to June 2025, achieving revenue growth of over 60% year-on-year.
“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,” Stepan Dlouhy, Allwyn chief investment officer, said.
Robert is an expert on sports betting in the United States, specifically the legalization process and regulation surrounding the industry.
