Allwyn to secure $1.6bn stake in DFS operator PrizePicks

• Allwyn is set to acquire a $1.6bn 62.3% stake in PrizePicks, with the initial cash consideration valuing the enterprise value at $2.5bn
• Based on performances and subsequent cash considerations, PrizePicks could potentially see its value shoot up to $4.15bn
• The deal should be completed in the first half of 2026, providing all regulatory and customary closing criteria are met

Allwyn, one of the foremost lottery operators in the world and a European major, has set out to buy a $1.6bn stake in US daily fantasy sports operator PrizePicks, one of the largest deals in the sector in 2025.

Allwyn pushes hard into new verticals with recent PrizePicks stake buyout proposal

This marks Allwyn’s ongoing commitment to continue diversifying its portfolio and try to push into sectors that are not affiliated with lottery games, following a major win for the operator in the United Kingdom, where it has become the operator behind the National Lottery.

However, this is a step away from Allwyn’s traditional stomping ground, which will give the company a good run for its money.

With the transaction yet to be concluded and due to close in H1 2026, Allwyn will begin to secure experience in the dynamic daily fantasy sports market at a time of rapid growth of the traditional sports betting market, and the emergence of alternative verticals, such as prediction markets.

This is not to say that Allwyn won’t explore those other verticals. In fact, PrizePicks CEO Mike Ybarra has welcomed the stake acquisition by Allwyn, noting that this deal would allow PrizePicks to expand on its portfolio and offers, and scale across sports, culture, and notably -prediction markets.

The exact size of the stake is pinned at 62.3% and the transaction is to be financed through cash. According to Allwyn, though, the value of PrizePicks may yet soar, with the current cash consideration of $1.6bn valuing the enterprise value at $2.5bn. The value may shoot up if certain criteria are met after that.

"If PrizePicks achieves certain performance metrics over the next three years, additional cash consideration under the agreement could raise the implied enterprise value to a maximum of $4.15 billion," the company said in a press statement.

PrizePicks to remain under the same leadership and operate as a standalone brand

The acquisition of the controlling stake would not divest powers from PrizePicks, however, and the company will continue to operate independently, and as a standalone brand from Allwyn. Ybarra will retain his leadership position.

PrizePicks Co-Founder Adam Wexler will also continue to serve on the company’s Board of Directors, indicating that Allwyn is trusting the current model in PrizePicks. In the meantime, Allwyn Founder and Chair Karel Komarek had this to say, commenting on the deal:

"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."

Ybarra was similarly pleased with the development, arguing that it marked the start of a new and exciting chapter for Prize Picks. Allwyn previously acquired Instant Win Gaming in 2024, buying a 70% stake in the company, and it is also looking to secure a controlling interest in Novibet.

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