#USA #Atlanta #PrizePicks #DFS #Allwyn

Allwyn Acquires Majority Stake in PrizePicks

In an exciting development for the gaming and entertainment industry, Allwyn International AG, a prominent lottery-led gaming company, has officially announced its acquisition of a majority stake in PrizePicks, the largest daily fantasy sports (DFS) operator in North America. This strategic move positions Allwyn to significantly expand its footprint in the U.S. sports and entertainment sector, creating a powerful alliance aimed at enhancing fan engagement and innovation.

Transaction Overview

Allwyn has committed to purchasing approximately 62.3% of PrizePicks for an initial cash consideration of USD 1.6 billion, which values the company at an enterprise worth of USD 2.5 billion. Furthermore, if PrizePicks meets specific performance metrics over the following three years, this enterprise value could escalate to a maximum of USD 4.15 billion, showcasing Allwyn’s confidence in PrizePicks' growth potential.

PrizePicks, established in 2015, has quickly dominated the DFS arena, driven by pioneering product innovation and a deep commitment to engaging its player community. The platform offers fans various ways to interact with their favorite sports, including unique free-to-play games and peer-to-peer tournaments that allow competitors to test their skills against each other. With millions of active users across over 45 jurisdictions in the U.S., PrizePicks has garnered a devoted fanbase and impressive annual revenue growth.

Strategic Implications for Allwyn

For Allwyn, this acquisition is a remarkable opportunity to broaden its operations in the U.S., where it currently manages the Illinois Lottery. The company envisions PrizePicks as a crucial addition to its values surrounding responsible gaming and community upliftment. As part of Allwyn’s ongoing strategy to evolve into a leading global gaming entertainment entity, this acquisition aligns perfectly with the brand’s goals.

The partnership will empower PrizePicks to leverage Allwyn's extensive resources to accelerate growth and foster innovation, thereby appealing to a wider fan base than ever before.

PrizePicks Leadership

Under the acquisition agreement, PrizePicks will continue operating as a standalone brand, with its current CEO Mike Ybarra and leadership team maintaining their roles and a significant ownership stake. This continuity is expected to be beneficial, as the executive team boasts strong backgrounds in the gaming and entertainment sectors, enhancing their capability to connect with and expand their communities. No changes are anticipated to the company’s strategic vision or operations, ensuring stability during this transitional phase.

Enhanced Growth Prospects

Looking ahead, Allwyn has high expectations for PrizePicks. The initial cash consideration reflects substantial confidence in PrizePicks’ existing performance metrics, as evidenced by its reported Adjusted EBITDA of USD 339 million for the year ending June 2025, along with over 60% year-on-year revenue growth.

Allwyn's final obligation for the acquisition will revolve around customary post-closing adjustments and achieving specific future performance benchmarks, pointing towards an aggressive growth trajectory aligned with the gaming industry's evolution.

Karel Komarek, Allwyn's Founder and Chairman, emphasized the importance of this acquisition, stating it will fuel Allwyn's expansion in the U.S. market, where digital entertainment is experiencing rapid growth. He highlighted PrizePicks' role in transforming fan engagement by making sports contests more thrilling and interactive.

Likely, this acquisition is set against a backdrop of Allwyn's other strategic maneuvers in North America, including acquiring significant stakes in prominent gaming enterprises in recent years. The integration of PrizePicks will undoubtedly bolster Allwyn's existing operations, contributing to a diversified portfolio that emphasizes innovative market approaches and community-centered initiatives.

Conclusion

As Allwyn embarks on this new journey, the prospect of shaping the future landscape of DFS and casual entertainment is particularly alluring. Combining Allwyn's robust infrastructure and strategic vision with PrizePicks' innovative approach positions both companies well for future growth, further solidifying their roles as transformative forces in the global entertainment arena. Stepping into a vibrant new era of sports interaction and engagement, Allwyn and PrizePicks are revolutionizing how fans connect with their favorite sports and athletes.