Allwyn Expands Into Sports Betting Market with Major Stake Acquisition in $2.5 Billion PrizePicks

Allwyn, the Swiss lottery operator, is making a strategic move into the high-stakes world of wagering by purchasing a 62.3% stake in PrizePicks, North Americas largest daily fantasy sports company. This $1.6 billion initial cash investment, which brings the acclaimed company to an enterprise valuation of $2.5 billion, signals Allwyns massive expansion into the competitive landscape of sports betting. The deal, which reportedly exceeds previous valuation estimates for PrizePicks, positions the operator to capture a significant share of the rapidly growing market for digital sports betting and fantasy gaming.

What’s in the Deal?

• Ownership Structure: After the acquisition, PrizePicks will operate as an independent brand under Allwyn, with Mike Ybarra continuing as CEO.
• Additional Cash Consideration: The payment could increase by up to $1 billion if PrizePicks achieves specific financial performance targets within three years, raising its potential enterprise value to approximately $4.15 billion.
• Transaction Financing: Allwyn will fund the purchase through a combination of cash reserves and debt, anticipating closure in the first half of 2026.

Allwyn’s Interest in PrizePicks

One of the main attractions for Allwyn is PrizePicks’ potential expansion into the prediction markets sector. PrizePicks is already registered with the National Futures Association (NFA), indicating its serious approach towards branching into regulated markets.

If this move proves successful, Allwyn gets economical exposure to an emerging industry, especially as major players like Polymarket and Kalshi are reportedly eyeing substantial financing rounds suggesting valuations of up to $9 billion and $5 billion respectively.

PrizePicks’ Current Market Performance

In the heavily scrutinised DFS market, PrizePicks has made a name for itself, particularly in states like Arizona and Massachusetts where its market share and revenue are outpacing rivals like Underdog Fantasy. As a sign of its robust performance, PrizePicks reported an adjusted EBITDA of USD 339 million in the last 12 months ending in June 2025, boasting over 60% year-on-year revenue growth.

Strategic Importance to Allwyn

This acquisition marks a significant expansion for Allwyn, which has primarily operated in Europe. With PrizePicks operating across more than 45 states in the US, this strategic move broadens Allwyn’s footprint immensely and positions it favorably in the competitive gaming landscape.

Currently, PrizePicks has altered its offerings to a player vs. player (PVP) model to navigate regulatory hurdles, with only three states — North Carolina, Texas, and Virginia — still permitting player vs. house DFS formats.

Robert Chvatal, CEO of Allwyn stated, “This investment is Allwyn’s largest in the United States to date, and PrizePicks exemplifies innovation by engaging a new generation of sports fans.”

Summary

The acquisition of a majority stake in PrizePicks by Allwyn represents not only a substantial financial transaction but also a strategic pivot towards leveraging the growing DFS and prediction markets. This deal underscores the increasing convergence between traditional lottery operators and the burgeoning online gaming sector, positioning both entities for future growth and innovation.