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Allwyn is set to make its first entry into the US sports and entertainment market with its acquisition of a 62.3% stake in PrizePicks, North America’s largest daily fantasy sports operator. The deal, which has an initial cash payment of $1.6 billion, positions Allwyn as the majority shareholder in PrizePicks, highlighting an enterprise value of at least $2.5 billion for the company.
The agreement also includes provisions for performance-related payments that could increase PrizePicks’ total valuation to over $4 billion in the next three years.
The structure of the deal includes a secondary arrangement that allows PrizePicks’ selling shareholders to earn up to $1 billion in additional payments by 2029, contingent on the company meeting specific performance targets set between 2026 and 2028.
Since its establishment, this acquisition marks the Czech-based company’s most significant investment in the US and also its first major expansion beyond its traditional lottery operations. Allwyn currently operates the UK lottery after acquiring Camelot and manages the Illinois lottery in North America.
Deal to be closed in H1 2026
PrizePicks, which started in 2015, has become a leader in the daily fantasy sports world by introducing unique features like free-to-play contests and a peer-to-peer tournament model that allows fans to challenge each other directly.
Despite facing significant challenges during the Covid-19 pandemic, including near bankruptcy, the company has seen remarkable growth since then, even as it competes against giants like FanDuel and DraftKings.
In the year leading up to June 2025, PrizePicks reported an adjusted EBITDA of $339 million, with the platform now operating in over 45 jurisdictions. The deal with Allwyn is anticipated to be finalized in the first half of 2025, contingent upon securing the necessary regulatory approvals.
Allwyn 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.”
Karel Komarek, Allwyn Founder and Chair, also commented, stating, “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.”
No leadership or operational changes for PrizePicks
PrizePicks will continue to operate as an independent brand without any changes to its leadership team. CEO Mike Ybarra will continue to lead operations, and co-founder Adam Wexler will stay on the board, ensuring continuity during the transition.
According to the press release, Allywn’s extensive resources and experience are expected to boost PrizePicks’ growth, helping it to reach a wider audience and expand its offerings.
“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,” Ybarra stated on the deal.
Meanwhile, Allwyn has been active in restructuring its portfolio, recently announcing plans to divest its casino operations in Germany and Australia. The company also reached an agreement to acquire the remaining 15.51% minority stake in Stoiximan, an online sports betting and iGaming brand focused on Greece and Cyprus.
Despite these changes, Allwyn remains committed to its international growth strategy as it pushes to strengthen its presence in the US through key acquisitions and partnerships.
Source: NEXT.io
