Allwyn to Acquire Majority Stake in PrizePicks for $1.6 Billion

Transaction Details and Valuation

The acquisition implies an enterprise value of $2.5 billion upfront, with the potential to climb to $4.15 billion if PrizePicks meets performance milestones between 2026 and 2028.

The deal is expected to close in the first half of 2026, pending regulatory approvals. Allwyn will finance the purchase with a combination of cash and debt.

PrizePicks’ current leadership, led by CEO Mike Ybarra, will remain in place, and the company will continue to operate under its established brand.

Co-founder Adam Wexler will retain a board seat, ensuring continuity in the company’s direction. Minority shareholders will have access to customary liquidity provisions five years after closing.

PrizePicks’ Rapid Growth

Since its founding in 2015, PrizePicks has become North America’s largest DFS operator, offering accessible contests that have attracted millions of active users across more than 45 jurisdictions.

The company has expanded its portfolio beyond traditional pick’em contests, introducing peer-to-peer tournaments and free-to-play formats designed to broaden its fanbase.

The results have been striking: PrizePicks delivered adjusted EBITDA of $339 million in the 12 months to June 2025, with revenue growth exceeding 60% year-on-year. Its reputation for product simplicity and strong community engagement has positioned it as a clear leader in the DFS category.

For Allwyn, which already operates the Illinois Lottery and holds a majority stake in Instant Win Gaming, the deal provides a gateway into U.S. sports entertainment at scale. Founder and Chair Karel Komarek described the acquisition as a way to accelerate momentum and bring Allwyn closer to its ambition of becoming the world’s leading gaming entertainment company.

“This acquisition will continue to drive Allwyn’s momentum and expand our business in the United States,” Komarek said. “PrizePicks has established its credentials as an industry pioneer, revolutionising the way fans engage with the athletes they love.”

CEO Robert Chvatal added that the acquisition represents Allwyn’s largest U.S. investment to date, bringing digital, gaming, marketing, and advertising under a single vision to accelerate growth.

Strategic Fit and Market Context

The timing of the deal reflects Allwyn’s broader strategy to invest in fast-growing digital verticals. Following its 2024 acquisition of Instant Win Gaming and its ongoing effort to acquire Novibet, the company has sought to diversify beyond lotteries into skill-based, fan-driven formats. Global partnerships with Formula 1 and McLaren earlier this year further underline its ambition to blend gaming, entertainment, and sports.

PrizePicks’ simple prediction model and strong brand resonance align closely with this approach. The partnership is designed to give the DFS operator the resources to scale faster while offering Allwyn a foothold in a market that has grown rapidly in popularity alongside legalized sports betting.

Ybarra framed the deal as a milestone for the company’s community. “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,” he said.

Wexler emphasized that PrizePicks’ founding vision was to make fantasy sports accessible to casual players. With Allwyn’s backing, he said, the company will bring its model to an even larger stage.

If the deal clears regulatory hurdles, Allwyn will become one of the most influential players in the U.S. DFS ecosystem. For PrizePicks, access to Allwyn’s scale and resources could unlock new innovations and a wider audience. For the broader market, the acquisition signals that the DFS sector, long considered a niche alternative to sports betting, has matured into a multibillion-dollar business attracting major international investment.