Key Moments:
- Allwyn has agreed to acquire a 62.3 percent stake in PrizePicks for $1.6 billion in cash.
- The transaction gives PrizePicks an upfront enterprise value of $2.5 billion, potentially increasing to $4.15 billion based on performance metrics over the next three years.
- The deal is expected to close in the first half of 2026, subject to customary post-closing adjustments.
Deal Overview
Allwyn International continues its global expansion by agreeing to acquire a majority stake in U.S. daily fantasy sports operator PrizePicks. The European-based gambling company will pay $1.6 billion in cash for a 62.3 percent stake. This sets an upfront enterprise value of $2.5 billion for PrizePicks. Additionally, if PrizePicks meets specific performance targets over the next three years, the total consideration could rise to $4.15 billion.
"Lottery-led gaming entertainment company" Allwyn is buying a majority stake in PrizePicks for $1.6B, which implies the latter is worth around $2.5B. I think that's like half a Kalshi now, or a third of a Polymarket, going off recent reporting on those prediction markets. pic.twitter.com/4WQaCN0lGj
— Geoff Zochodne (@GeoffZochodne) September 22, 2025
About PrizePicks
Founded in 2015, PrizePicks operates in 45 U.S. jurisdictions. It offers free-to-play and peer-to-peer tournament games where users compete directly with each other. The company has consistently posted high double-digit annual revenue growth, with adjusted EBITDA totaling $339 million for the 12 months ending June 2025. Revenue in that period increased by more than 60 percent year-on-year.
| Key Performance Metrics | Value | Timeframe |
|---|---|---|
| Adjusted EBITDA | $339 million | 12 months to June 2025 |
| Year-on-Year Revenue Growth | Over 60 percent | 12 months to June 2025 |
| Enterprise Value (upfront) | $2.5 billion | Upon deal signing |
Leadership and Strategic Direction
PrizePicks will continue as an independent brand under Allwyn. The CEO, Mike Ybarra, and his leadership team will retain the majority of their ownership interest. Adam Wexler, co-founder of PrizePicks, will remain on the PrizePicks Board of Directors.
Further Expansion in the United States
This transaction supports Allwyn’s goal to establish a stronger presence in the U.S. sports and entertainment market. It expands beyond its existing operations, including the Illinois Lottery. Allwyn recently acquired a 70 percent stake in Instant Win Gaming. It also plans to acquire a controlling interest in Novibet, an online sports betting operator.
Under the terms of the current agreement, the deal is subject to customary post-closing adjustments and is anticipated to finalize in the first half of 2026. PrizePicks’ selling shareholders may be eligible for up to $1 billion in performance-contingent payments in 2029, based on performance between 2026 and 2028.
Executive Commentary
All direct quotes below are presented exactly as stated in the original article:
Allwyn founder and chair Karel Komarek 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.”
CEO Robert Chvatal 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.”
Chief investment officer Stepan Dlouhy 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.”
Ybarra added: “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.”
Wexler 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.”
- Author
Daniel Williams
