Lottery giant Allwyn has announced plans to acquire a 62.3% stake in US daily fantasy sports (DFS) operator PrizePicks. The deal, worth an initial $1.6 billion, values PrizePicks at an enterprise value of $2.5 billion and marks Allwyn’s biggest US investment to date.
Transaction Structure and Potential Upside
The agreement, advised by Moelis & Company, provides Allwyn with a majority shareholding in PrizePicks, which will continue to operate as a standalone subsidiary. Current CEO Mike Ybarra and his leadership team will remain in place, ensuring continuity as the company scales.
An earn-out mechanism has been built into the deal: if PrizePicks achieves performance targets over the next three years, additional payments could lift its valuation to as high as $4.15 billion.
Strengthening Allwyn’s US Position
Allwyn, originally founded in the Czech Republic and now operator of the UK National Lottery through its acquisition of Camelot, already runs the Illinois Lottery in North America. This latest move underscores its strategy to deepen its presence in the US gaming market, diversifying beyond lotteries into digital-first entertainment verticals.
CEO Robert Chvátal described the deal as a “significant European investment” and emphasized PrizePicks’ ability to connect with a younger, more engaged demographic compared to traditional lottery players. This strategic pivot aligns with Allwyn’s long-term vision of bridging the gap between skill-based games, DFS, and lottery products.
PrizePicks’ Market Disruption
Since its launch in 2015, PrizePicks has disrupted the US fantasy sports landscape, breaking through the historical duopoly of FanDuel and DraftKings. Its simplified “pick’em” model has made DFS more accessible to casual players, allowing the platform to rapidly build market share and brand recognition.
Despite facing regulatory pushback in certain states, including recent scrutiny in California, PrizePicks has maintained growth momentum. In July, the operator became the first DFS company to be officially licensed in Puerto Rico, further broadening its regulatory footprint.
PrizePicks Founder Adam Wexler highlighted the acquisition as an opportunity to accelerate growth: “From day one, we set out to create a more accessible style of fantasy sports that could appeal to casual players. Now, with Allwyn’s backing, we’ll bring our games to even more players on a much bigger stage.”
Industry Context and Future Outlook
The DFS sector has emerged as a high-growth niche in the wider US sports betting ecosystem, particularly appealing to younger audiences seeking interactive engagement with their favorite sports. For Allwyn, the acquisition provides entry into a complementary segment that can cross-pollinate with its lottery expertise, particularly in building loyal, recurring customer bases.
The deal also comes at a time when Allwyn is undergoing internal changes, including the recent departure of its North American CEO, and reporting strong financials with Q2 2025 revenue up 6% year-on-year to €2.27 billion ($2.67 billion). By aligning with PrizePicks, Allwyn positions itself at the forefront of the convergence between lotteries, fantasy sports, and broader iGaming.
Sources: Gambling Insider, Next.io
