Allwyn’s Acquisition of PrizePicks: A Strategic Move in the US Fantasy Sports Arena
In a bold step toward establishing a significant presence in the American daily fantasy sports (DFS) market, European lottery powerhouse Allwyn International has announced its intention to acquire a majority interest in PrizePicks, a prominent DFS operator.
The acquisition, revealed on Monday, marks a crucial moment in Allwyn’s ongoing transformation, which includes launching a digital division under the leadership of Kresimir Spajic, former CEO of Betfred US. This initiative demonstrates Allwyn’s commitment to innovating beyond traditional lottery operations, which also encompass managing the National Lottery in the UK, an endeavor that saw a major technological upgrade last August.
By purchasing a 62.3% stake in PrizePicks for an initial cash outlay of $1.6 billion—indicating an initial enterprise valuation of $2.5 billion with the potential to rise to $4.15 billion—Allwyn is positioning itself to tap into the burgeoning US DFS market. The deal is set to finalize in the first half of 2026, pending the satisfaction of necessary closing conditions.
Current leadership at PrizePicks, including CEO Mike Ybarra, will continue to steer the company as an independent entity within Allwyn, preserving most ownership stakes. This is a strategic choice that allows the brand to maintain its unique operational culture and focus.
PrizePicks: A Rising Star in DFS
Founded in 2015, PrizePicks operates across 45 states and is quickly gaining momentum as one of the fastest-growing entities in the DFS sector. The company distinguishes itself from traditional platforms by allowing users to make predictions on individual players’ stats rather than drafting entire teams. This user-friendly approach has facilitated its entry back into several regulated markets, bolstering its long-term sustainability.
As of June 2025, PrizePicks reported an impressive adjusted EBITDA of $339 million, with revenue growth surpassing 60% year-over-year—a testament to its rising popularity and operational efficiency.
The journey towards this acquisition began in July 2024 when PrizePicks engaged investment firm Moelis & Co. to explore merger and acquisition opportunities. Co-founder Adam Wexler has expressed optimism about the future, stating that Allwyn’s investment will greatly enhance the company’s growth trajectory.
With this acquisition, Wexler envisions rapid expansion for PrizePicks, stating, “With Allwyn’s partnership, we can amplify our vision, reaching even more players on a grander platform.”
A New Era for PrizePicks
CEO Mike Ybarra describes this moment as the beginning of an exhilarating new chapter for PrizePicks and its community of players. He believes that joining forces with Allwyn—an organization known for its emphasis on innovation—will further enhance the interactive nature of their games, making them more engaging and rewarding for fans.
Allwyn’s CEO, Robert Chvatal, sees this undertaking as the company’s most significant investment in the U.S. market to date. He believes that PrizePicks embodies an entrepreneurial spirit that resonates with a new generation of sports enthusiasts eager for deeper engagement beyond mere observation.
As both companies embark on this collaborative journey, they aim to refine and expand a platform that simplifies skilled prediction-making—a move that could reshape the landscape of daily fantasy sports in America.