European lottery powerhouse Allwyn International has made a decisive move into the US daily fantasy sports (DFS) market by announcing the acquisition of a majority stake in PrizePicks. This acquisition, which was revealed on Monday, signifies a bold expansion strategy for Allwyn as it positions itself to become a significant player in the American gaming market.
This strategic move is part of Allwyn’s broader plan to diversify and strengthen its digital presence, following a series of corporate shifts, including the launch of a new digital business spearheaded by former Betfred US CEO Kresimir Spajic. As the operator of the National Lottery in the UK, Allwyn recently completed a major technological overhaul, replacing all lottery terminals across the UK in what was one of the sector’s most significant retail lottery technology upgrades in recent history.
By acquiring a 62.3% ownership stake in PrizePicks, Allwyn secures a pivotal entry point into the US DFS and betting landscape. The only previous connection Allwyn had to the US market was through its operations in the Illinois Lottery. The deal entails an initial cash payment of $1.6 billion, valuing PrizePicks at an enterprise value of $2.5 billion upfront. However, this valuation could escalate to $4.15 billion if PrizePicks meets specific performance thresholds over the next three years.
The transaction is anticipated to be finalized in the first half of 2026, contingent upon the fulfillment of certain closing conditions. Current CEO Mike Ybarra and his leadership team will continue to manage PrizePicks as a standalone entity within Allwyn, maintaining significant control over the brand’s operations.
With a customer base in the millions, PrizePicks has established itself as one of the fastest-growing DFS operators in the United States. The company, which was founded in 2015, operates in 45 states and has distinguished itself from traditional DFS platforms by allowing users to wager on the over/under of individual player statistics and fantasy scores, rather than drafting entire teams. Recently, PrizePicks reentered several regulated markets, enhancing its long-term sustainability and growth potential.
In the year leading up to June 2025, PrizePicks reported an adjusted EBITDA of $339 million, driven by a remarkable revenue growth of over 60% compared to the previous year. This robust financial performance underscores PrizePicks’ position as a formidable player in the industry.
Adam Wexler, co-founder of PrizePicks, will remain on the board of directors, expressing enthusiasm about the new partnership. He emphasized that Allwyn’s investment provides the necessary capital for PrizePicks to expand its reach and enhance its offerings. “With Allwyn’s backing, we’ll accelerate our vision and bring our games to even more players on a much bigger stage,” Wexler noted, highlighting the potential for growth and innovation.
PrizePicks CEO Mike Ybarra echoed this sentiment, recognizing the acquisition as the beginning of an exciting new chapter for the company and its expanding community of players. He emphasized that joining forces with Allwyn, a company that shares PrizePicks’ commitment to product innovation, will enhance the interactivity and engagement of their games.
Robert Chvatal, CEO of Allwyn, expressed optimism about the acquisition, viewing it as a catalyst for significant growth in the US market. He remarked on PrizePicks as an entrepreneurial venture that empowers a new generation of sports fans who desire more interactive engagement with their favorite sports and athletes. He praised the platform for its intuitive design that simplifies skilled predictions, thereby broadening the appeal to a wider audience.
While the acquisition marks a significant step for Allwyn, industry analysts have mixed opinions on the potential outcomes. Some view the acquisition as a strategic masterstroke that positions Allwyn to capitalize on the burgeoning DFS market in the US, where sports betting continues to gain traction following the Supreme Court’s decision to lift the federal ban on sports betting in 2018. They argue that the strategic alignment between Allwyn’s resources and PrizePicks’ innovative approach could lead to new synergies and market opportunities.
However, others caution that the US market’s regulatory complexity and competitive landscape pose significant challenges. The DFS space is crowded with established players like DraftKings and FanDuel, making market penetration challenging despite PrizePicks’ unique proposition. Regulatory hurdles and the need for state-by-state compliance could slow down the anticipated growth trajectory, they warn.
Ultimately, the success of the acquisition will depend on how effectively Allwyn integrates PrizePicks into its broader operations and whether it can leverage its global experience and resources to navigate the US market’s intricacies. As Allwyn ventures into this uncharted territory, the acquisition of PrizePicks represents both an opportunity and a risk, one that could redefine its position in the global gaming industry.
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