#USA #Atlanta #Fantasy Sports #PrizePicks #Allwyn

Allwyn's Strategic Move into U.S. Entertainment with PrizePicks Acquisition

Allwyn International AG, a prominent force in global gaming, is set to make waves in the sports and entertainment sectors with its recent announcement of acquiring a significant share of PrizePicks, the leading daily fantasy sports (DFS) operator in North America. The deal involves Allwyn purchasing approximately 62.3% of PrizePicks for an initial cash outlay of $1.6 billion, valuing the enterprise at $2.5 billion. If PrizePicks meets performance targets over the next three years, the total value could rise to a staggering $4.15 billion. This acquisition not only bolsters Allwyn's portfolio but also marks a strategic entry into the U.S. market where sports entertainment is booming.

Founded in 2015, PrizePicks has leveraged its innovative spirit to become a dominant name in DFS, providing fans with novel ways to engage with their favorite sports. The platform’s unique features, such as free-to-play games and peer-to-peer tournaments, have attracted millions of active users across over 45 states, making it one of the fastest-growing entities in the industry.

For Allwyn, this acquisition is a compelling opportunity to expand beyond its current operations in the Illinois Lottery and into a rapidly evolving market where technology and sports intersect. Allwyn's vision is centered on enhancing player engagement and community impact, which resonates well with PrizePicks’ approach to entertainment. The synergies between the two companies position Allwyn to not only support PrizePicks' innovation but also to broaden its reach within the sports community.

With Allwyn's considerable resources, PrizePicks will gain the necessary backing to innovate and engage more fans at a quicker pace. The leadership of PrizePicks, led by CEO Mike Ybarra, will remain intact, ensuring continuity and expertise in guiding the company through the next stage of growth. The existing executive team, with its strong background in gaming and entertainment, is well-equipped to lead PrizePicks into this new frontier.

The anticipated close of this transaction is set for the first half of 2026, contingent upon regulatory approvals and customary checks. Allwyn plans to finance this acquisition through a mix of available cash and debt. The financial backbone of PrizePicks has proven robust, demonstrating an incredible 60% growth in revenue over the past year and generating an Adjusted EBITDA of $339 million.

Industry leaders within Allwyn expressed enthusiasm regarding this acquisition. Karel Komarek, Allwyn's founder and chair, remarked on the potential to reshape how fans interact with sports, emphasizing PrizePicks’ role as an innovator in making sports engagement more immersive. Robert Chvatal, the CEO of Allwyn, highlighted this acquisition as a pivotal step in Allwyn’s growth journey within the U.S., empowering fans to actively participate in sports rather than merely observing.

The PrizePicks platform encapsulates the essence of daily fantasy sports, providing a skill-driven environment where players can utilize their sports knowledge in competitive formats—distinctly different from traditional betting which relies heavily on chance. This unique structure promotes a deeper connection between fans, their sports, and the thrill of competition. Allwyn and PrizePicks share a vision of redefining casual entertainment, signaling an exciting chapter in the evolution of the industry as they embark together on this journey.

In conclusion, Allwyn's acquisition of PrizePicks is set to revolutionize the interaction between sports fans and their favorite games. With a commitment to fan engagement and technological advancement, this partnership is poised to lead the charge in the casual entertainment landscape for years to come.