Lottery Giant Allwyn Buys Majority Of PrizePicks In Record Fantasy Acquisition

Allwyn Entertainment, which runs the Illinois and UK lotteries, has agreed to buy PrizePicks in a deal that could value the daily fantasy giant at more than $4 billion — by far the largest acquisition in U.S. fantasy sports history.

In a press release Monday, Allwyn revealed that it will pay an initial $1.6 billion for a 62.3% stake in PrizePicks. That would value its full business at $2.5 billion.

However, the deal also includes conditional payments based on whether PrizePicks meets “certain performance metrics.” Those metrics were not disclosed, but the extra payments would be up to $1 billion, which would put the total payment at $2.6 billion for 62.3% of PrizePicks. That would suggest a valuation of $4.15 billion for the entire PrizePicks business.

The deal is expected to close in the first half of 2026.

“This acquisition will continue to drive Allwyn’s momentum and expand our business in the United States,” Allwyn Founder and Chair Karel Komarek said in a statement. “PrizePicks has established its credentials as an industry pioneer, revolutionizing 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.” 

PrizePicks management team stays on

The remaining 37.7% of PrizePicks will continue to be held by the company’s existing leadership team, which will also continue to run the operation as an arm of Allwyn. 

Mike Ybarra, who will remain CEO of PrizePicks, said in a statement, “Today marks the start of an exciting new chapter for PrizePicks and our growing community of players. There has never been a more electrifying time to shape the future of fan-first entertainment.

“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.”

The press release noted that the deal will give PrizePicks “the support to expand and innovate faster,” though specific expansion plans were not outlined.

PrizePicks went fully peer-to-peer in August

PrizePicks and Underdog have been the two main players in the world of “DFS 2.0,” which involves “pick ‘em” style games where users can predict whether a player will go over or under a certain statistical benchmark.

“From day one, we set out to create a more accessible style of fantasy sports that could appeal to casual players,” PrizePicks Founder Adam Wexler said. “As the industry evolved, PrizePicks was the first to go all-in on the simplest prediction model and take it to scale, reshaping how fans engage with fantasy sports. Now, with Allwyn’s backing, we’ll accelerate our vision and bring our games to even more players on a much bigger stage.”

PrizePicks previously offered these games in an against-the-house model, which some regulators warned was too close to sports betting.

However, in August, PrizePicks stopped offering games against the house, pivoting to peer-to-peer only. This move was seen by some as a precursor to a sale after reports last year that the business had hired bankers to explore buyout options.

The business is delivering big profits on a unit economics basis, meaning each new customer generates more revenue than the costs it takes to serve them. In the acquisition press release, Allwyn said PrizePicks generated adjusted EBITDA – a measure of profitability designed for unit economics – of $339 million in the year leading up to June 30 2025. That’s around three quarters of DraftKings’ adjusted EBITDA in the same period, though as a non-standardized measure, comparisons may not be truly like-for-like.

Allwyn also said PrizePicks had “strong cash flow generation,” suggesting it may also be delivering notable profit in more concrete terms.

A new space for Allwyn

The move is a new step for Allwyn into the world of daily fantasy sports and may be part of a wider sports expansion in the U.S. 

The Czech Republic-based company, which generates billions in revenue, is best known for its lotteries, especially in Europe. Though it offers sports betting in some countries, that vertical made up less than 10% of the company’s revenue in the six months ending June 30 2025, with the vast majority of that coming from Greece and Cyprus.

It recently pushed into the U.S. but continued to focus on lotteries. The company acquired Camelot, which runs the Illinois lottery, in 2023 and Instant Win Gaming (IWG), which offers online scratchcards, last year.

However, it hinted at a move into the U.S. fantasy or sports betting world when it hired Kresimir Spajic, formerly of Betfred, to lead its new digital arm. Allwyn said Spajjic would be responsible for “advancing Allwyn’s iGaming, sportsbook, and digital product capabilities,” suggesting sports growth in the U.S. may be on the cards.

Allwyn CEO Robert Chvatal noted that the PrizePicks deal was the company’s biggest statement in the U.S. market so far.

“This is a significant European investment, and Allwyn’s biggest in the United States to date,” he said in a statement. “PrizePicks is an entrepreneurial company that is empowering a new generation of fans who want to engage with their favorite sports and athletes, not just spectate. PrizePicks has created an intuitive platform that simplifies the process of making skilled predictions.

“I look forward to partnering with Mike and the PrizePicks team to support the growth of the business.” 

Allwyn Chief Investment Officer Stepan Dlouhy also hinted that the deal may not be the lottery heavyweight’s last in the U.S.

“The acquisition of PrizePicks underscores our ability to execute on our ambitious investment strategy,” he said in a statement. “The United States gaming and entertainment market has always been a compelling opportunity, and our focus has been on finding the right entry points. We took the first step in 2023 with the acquisition of the operator of the Illinois lottery and were pleased to subsequently acquire a majority stake in IWG, which has a strong footprint in the United States, in 2024. 

“Today, we announce the next major milestone on our journey. PrizePicks fits perfectly into our vision of shaping the future of mass market casual digital entertainment and is poised for further strong growth.”

PrizePicks prediction market application

PrizePicks’ expansion plans may include dipping its toe into the world of prediction markets.

The business has a pending application to join the National Futures Association (NFA), a trade body for companies in the swaps industry, which includes prediction markets.

That application has been pending since May 28.

NFA membership is required for a business to become registered with the Commodity Futures Trading Commission (CFTC) as a futures commission merchant (FCM), which would be allowed to offer access to markets created by a registered exchange.

Rival daily fantasy provider Underdog already offers prediction markets through a deal with Crypto.com, in which Underdog is considered a “technology provider” and therefore has been able to operate without NFA membership.

Sleeper is another fantasy app with a pending NFA application. Last week, lawyers representing Sleeper wrote a letter to the Office of Inspector General, the organization that oversees other federal bodies, accusing the CFTC of breaking the law by “refusing to approve” its application to become an FCM.

The letter claims that the NFA was “prepared to approve” Sleeper’s application in August, but “CFTC staff instructed” employees at the NFA not to do so. It is not clear whether PrizePicks may be facing a similar hold-up.