Allwyn to acquire majority stake in PrizePicks, creating a new force in global entertainment

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Sep 22, 2025, 09:09 ET

Multi-national lottery leader to enter United States sports and entertainment industry by purchasing approx. 62.3% of the nation's largest daily fantasy sports platform

Transaction implies an upfront enterprise value of USD 2.5 billion for PrizePicks

Allwyn and PrizePicks will combine strengths to accelerate innovation and fan engagement

LUCERNE, Switzerland and ATLANTA, Sept. 22, 2025 /PRNewswire/ -- Allwyn International AG, the lottery-led gaming entertainment company, and PrizePicks, the largest daily fantasy sports ("DFS") operator in North America, today announced that they have entered into a definitive agreement for Allwyn to acquire a majority stake in PrizePicks. Allwyn has agreed to purchase an approximately 62.3% stake in PrizePicks for an expected initial cash consideration of USD 1.6 billion, implying an upfront enterprise value of USD 2.5 billion. If PrizePicks achieves certain performance metrics over the next three years, additional cash consideration under the agreement could raise the implied enterprise value to a maximum of USD 4.15 billion.

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.

Transaction Information

The expected initial cash consideration for Allwyn's acquisition of an interest of approximately 62.3% in PrizePicks is USD 1.6 billion, subject to customary post-closing adjustments and based on an expectation of nil cash and nil debt at closing^[1]. In addition, the selling shareholders of PrizePicks may receive further performance-contingent payments of up to approximately USD 1.0 billion in 2029, based on performance metrics during 2026-28, which could increase the implied enterprise value to a maximum of USD 4.15 billion. Minority shareholders will benefit from certain customary liquidity provisions five years post-closing.

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^[2] of USD 339 million 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% 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.

Additional Daily Fantasy Sports Information

Daily Fantasy Sports (DFS) are skill-based games that give fans opportunities to test their sports knowledge in structured contests governed by specific rules and regulations. Unlike sports betting, where outcomes depend on wagering against odds set by bookmakers, DFS requires players to use their expertise — from analysing player performance to understanding matchups — to build lineups and compete for prizes. This skills-driven format has become a popular way for fans to engage more deeply with the games they love, creating an interactive second screen experience that complements live sports. PrizePicks was built with this in mind, offering a simple, accessible platform that reflects how today's fans watch sports, consume entertainment and build community.

Notes to editors

Freshfields US LLP is providing legal advice to Allwyn on this transaction. For PrizePicks, Moelis & Company LLC is acting as financial adviser and Cooley LLP is acting as legal counsel.

About PrizePicks

‍PrizePicks is the largest daily fantasy sports operator in the United States. Headquartered in Atlanta, Georgia, PrizePicks offers innovative skill-based fantasy games that engage and excite sports fans nationwide. Operating in more than 45 jurisdictions and continuing to expand, PrizePicks is dedicated to enhancing the sports experience for all. For more information, visit www.prizepicks.com.

About Allwyn

Allwyn is a multi-national gaming entertainment company, lottery-led and with leading market positions and trusted brands across Europe and North America. Our purpose is to make play better for all by focusing on innovation, technology, player safety and returning more to good causes across a growing casual gaming entertainment portfolio.

Forward-Looking Statements

This announcement may include forward-looking statements regarding certain of our plans and our current goals, intentions, beliefs and expectations concerning, among other things, our future results of operation, financial condition, liquidity, prospects, growth, strategies, pending acquisitions or other transactions (including regarding the completion of the announced acquisition of a majority stake in PrizePicks), financing plans and the industries in which we operate. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Generally, but not always, words such as "may," "could," "should," "will," "expect," "intend," "estimate," "anticipate," "assume," "believe," "plan," "seek," "continue," "target," "goal," "would" or their negative variations or similar expressions identify forward-looking statements. By their nature, forward-looking statements are inherently subject to risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity and the development of the industries in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this announcement. In addition, even if our results of operations, financial condition and liquidity and the development of the industries in which we operate are consistent with the forward-looking statements contained in this document, those past results or developments may not be indicative of results or developments in future periods. You should carefully consider the risks and uncertainties described in the "Risk Factors" section of the annual report published by Allwyn International AG and other documents we publish on our website. Most of these factors are outside our control and are difficult to predict. We do not undertake any obligation to review, update or confirm expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this document.

^[1] Except for working capital, for which a customary adjustment mechanism will be applied.

^[2] Based on U.S. GAAP operating income and adjusted for non-recurring or non-operating items (USD 10m; includes legal and litigation costs and bonus normalisation; share-based compensation expense is not added back to calculate Adjusted EBITDA).  Adjusted EBITDA is not defined or recognised under IFRS or U.S. GAAP and should not be considered as a substitute for measures determined in accordance with IFRS or U.S. GAAP.  Other companies may calculate such measures differently or may use such measures for different purposes, and therefore you should exercise caution in comparing these measures as included in this announcement to such measures or other similar measures as reported by other companies.