Allwyn International to acquire majority stake in PrizePicks
Allwyn International has entered into a definitive agreement to acquire a majority stake in daily fantasy sports operator PrizePicks.
Allwyn, a lottery-led gaming entertainment company with market positions in the UK, Austria, the Czech Republic, Greece and Cyprus, and Italy, said Monday it had agreed to take an approximately 62.3% stake in PrizePicks.
The expected initial cash consideration for Allwyn’s acquisition is US$1.6 billion, subject to customary post-closing adjustments.
In addition, the selling shareholders of PrizePicks may receive up to US$1 billion in 2029, based on performance metrics during 2026-28, which could increase the implied enterprise value to a maximum of $4.15 billion.
Allwyn expects to finance the purchase using a combination of cash on balance sheet and debt financing.
PrizePicks Chief Executive 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.”
PrizePicks offers free-to-play games and a peer-to-peer tournament-style offering. It has monthly active users in more than 45 US jurisdictions.
Allwyn described the transaction as “an opportunity to enter the strategically important sports and entertainment industry in the United States and expand its business in the country beyond an existing operation of the Illinois Lottery.”
In a statement, Allwyn Founder and Chair Karel Komarek added, “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.”
PrizePicks will operate as a standalone brand within Allwyn, led by Ybarra, and the existing leadership team which will be retaining the majority of their existing ownership interest.
PrizePicks’ Co-Founder Adam Wexler will continue to serve as a member of the PrizePicks Board of Directors.
“From day one, we set out to create a more accessible style of fantasy sports that could appeal to casual players,” Wexler 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.”
“This is a significant European investment, and Allwyn’s biggest in the United States to date,” added Allwyn Chief Executive Robert Chatval.
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.
Minority shareholders will benefit from certain customary liquidity provisions five years post-closing.
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The Backstory
Inside Allwyn’s U.S. push: the road to a $1.6 billion PrizePicks bet
A lottery incumbent tests U.S. waters
Allwyn’s move to take an approximately 62.3% stake in PrizePicks marks its largest U.S. wager to date and a pivot from a lottery-led footprint to broader digital gaming. The company, which already runs the Illinois Lottery, said it would finance the purchase with cash on hand and new debt, with an initial cash outlay of $1.6 billion and a potential earnout that could lift the implied enterprise value to $4.15 billion. The deal, expected to close in the first half of 2026 pending regulatory approvals, positions Allwyn to “enter the strategically important sports and entertainment industry in the United States,” according to its announcement of the transaction to acquire a majority stake in PrizePicks.
The PrizePicks agreement follows Allwyn’s steady expansion in online betting and gaming. In a separate transaction, Allwyn agreed to buy 51% of Novibet’s parent, LogFlex MT Holding Ltd., in a deal slated to close in the second half of 2025, for €217 million upfront and up to €110 million in contingent consideration. Management framed Novibet as a way to accelerate product innovation and expand international reach. That intent was highlighted in the company’s confirmation of the deal to take a controlling interest in the sportsbook and igaming developer, covered here via Allwyn’s Novibet acquisition and on its investor site detailing the Novibet stake.
Together, the Novibet and PrizePicks agreements sketch a two-track strategy: deepen content and technology through European-led igaming capabilities while using a high-growth U.S. fantasy operator to scale audience, data and cross-sell potential. Allwyn said PrizePicks would continue to operate as a standalone brand with its leadership team, a structure that could preserve the business’s speed while plugging it into Allwyn’s capital and compliance infrastructure.
PrizePicks readies for scale
PrizePicks has been building the operational scaffolding of a bigger company. The operator named former Niantic and EA marketing leader Mike Quigley as chief marketing officer, tapping his experience launching consumer campaigns and player engagement programs. The company said he will help drive expansion in new regulated markets, according to its announcement of Quigley’s appointment as CMO.
On the compliance side, PrizePicks brought on Todd Grossman, former general counsel and interim executive director at the Massachusetts Gaming Commission, as director of gaming regulatory compliance. The hire adds licensing and policy expertise as more states scrutinize fantasy formats and push for standardized controls. The company’s release on Grossman’s appointment frames the role as central to long-term growth and licensure objectives across jurisdictions.
The operator has also worked to formalize responsible gambling practices. PrizePicks became the first daily fantasy operator to complete the National Council on Problem Gambling’s Internet Compliance Assessment Program. The accreditation spans culture, training, KYC and consumer protections. That milestone, detailed in PrizePicks’ iCAP accreditation, gives Allwyn a cleaner regulatory narrative as it pushes deeper into U.S. digital entertainment.
These moves align with the company’s model, which blends a simple prediction format with peer-to-peer and free-to-play offerings. PrizePicks reports monthly active users in more than 45 U.S. jurisdictions. With Allwyn’s capital and lottery relationships, the platform gains a path to broader distribution and cross-marketing, while Allwyn gains a data-rich sports product that can complement lottery and prospective sportsbook channels.
Regulatory and reputational calculus
The U.S. market is fragmented and moving fast. Fantasy contests operate under a patchwork of state rules, while sports betting has a clearer, license-by-license framework. Allwyn’s choice to keep PrizePicks as a standalone brand led by its current team, while layering in compliance leadership and third-party validations, suggests a dual focus: preserve product-market fit and speed, and reduce legal friction as the business scales.
The timeline also matters. With the deal slated to close by mid-2026, Allwyn has a runway to complete its Novibet transaction and integrate technology that could enhance user experience and retention on both sides of the Atlantic. Financing the PrizePicks purchase with a mix of cash and debt signals confidence in cash flow and access to capital markets, but underlines execution risk if regulatory conditions tighten or user growth slows.
Sector consolidation raises the stakes
Allwyn’s moves arrive amid broader consolidation and refinancing across gaming and lottery. Intralot’s agreement to acquire Bally’s International Interactive Business for €2.7 billion in cash and shares shows scale is becoming a prerequisite to compete across lottery, online gaming and data-driven marketing. The deal, which includes significant debt financing commitments and leadership reshuffling, underscores the premium on integrated technology stacks and multijurisdictional licenses. Details are outlined in reports on Intralot’s acquisition of Bally’s online division.
Against that backdrop, Allwyn is assembling a portfolio that links lottery operations with higher-frequency digital wagering. The PrizePicks acquisition provides U.S. reach and a casual, mobile-first product that can broaden demographics. Novibet adds sportsbook and casino know-how with international traction. If the integrations hit their marks, Allwyn could leverage loyalty, payments and compliance systems across businesses and negotiate better media and data costs. If they misfire, the company could face duplicated platforms, rising customer acquisition costs and regulatory drift.
For now, the strategy is clear. Allwyn aims to translate lottery credibility into digital scale, using targeted acquisitions to control more of the product and player lifecycle. PrizePicks, with fresh marketing leadership, bolstered compliance and new capital, is the U.S. spearpoint of that plan.
