Allwyn to acquire majority stake in PrizePicks for $1.6bn
Allwyn is set to purchase a 62.3% stake in the DFS operator as it looks to expand US presence.
Key points:
– Allwyn has signed a deal to acquire 62.3% of PrizePicks for $1.6bn
– The transaction implies an upfront enterprise value of $2.5bn for PrizePicks
– Allwyn has set its sights on the US market with this transaction, venturing onwards from its existing lottery operations in Illinois
Operator Allwyn is set to acquire a 62.3% stake in daily fantasy sports (DFS) organisation PrizePicks for an initial cash consideration of $1.6bn.
This transaction, advised by Moelis & Company, will see Allwyn become the majority shareholder of the daily fantasy sports giant, highlighting an upfront enterprise value of $2.5bn for PrizePicks
Allwyn originated in the Czech republic and now also runs the UK lottery, having acquired Camelot. In North America, it runs the Illinois lottery.
Indeed, this latest update comes as Allwyn seeks to further expand its presence in the US, with PrizePicks having established an influential position within the North American DFS landscape since its inception in 2015. Should PrizePicks perform well during the next three years, subject to the meeting of certain metrics, an additional cash consideration could be triggered as part of this acquisition agreement – raising PrizePicks’ implied enterprise value to $4.15bn.
Structurally, PrizePicks is set to continue as a standalone subsidiary brand of the wider Allwyn organisation – with current CEO Mike Ybarra (appointed in August 2024) retaining operational control of the company alongside his existing leadership team.
Over the years, PrizePicks has received plenty of opposition from tribes and other commercial operators in the US. Nevertheless, despite opposition, PrizePicks has helped break the historical duopoly of DFS by FanDuel and DraftKings in the US market in recent years, with Allwyn citing high-growth potential and synergy between the DFS and lottery sectors, with regard to developing a loyal and interactive player base as key influencers behind this merger.
Robert Chvatal, Allwyn CEO, said: “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.”
Pertaining to the inception of the deal, Allwyn has taken a long-term view of the US market, with the decision to enter the DFS space driven by PrizePicks’ younger, passionate demographic of players that are following a growing trend of taking an active role of participation within sports entertainment and sports betting. Indeed, as the demographic for lottery players is historically older, this latest acquisition could indicate something of a pivot towards covering the younger base of the sports betting market now proliferating within the fast-developing North American landscape.
Adam Wexler, PrizePicks Founder: “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.”
Good to know: Despite recent regulatory scrutiny against DFS in California, specifically, the practice remains within a federally protected safe harbour from a wider US perspective
It has been a busy summer for PrizePicks, which appointed Todd Grossman as Director or Gaming Regulatory Compliance in July, shortly before becoming the first-ever DFS operator to become officially licensed within Puerto Rico.
Allwyn has not been without recent US news, itself, as after it took over Camelot’s Illinois-based lottery operations in 2023, the operator more recently saw the departure of its North American Chief Executive during early Q3. Elsewhere, the operator’s Q2 2025 financial report saw the company highlight a revenue figure of €2.27bn ($2.67bn), up 6% year-on-year.
Also speaking on this new deal, 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.”
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