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The lottery and gaming company will make an initial cash payment of $1.6 billion for the controlling interest. The deal structure includes performance-based earnouts that could increase PrizePicks’ total valuation beyond $4 billion over the next three years.
Under the acquisition terms, PrizePicks’ selling shareholders may receive additional payments up to $1 billion in 2029, contingent on the company meeting predetermined performance targets between 2026 and 2028.
Strategic Expansion Beyond Traditional Lottery Operations
The acquisition marks Allwyn’s largest investment in the United States market and represents a significant expansion beyond its core lottery business into sports and entertainment gaming.
PrizePicks, established in 2015, has captured substantial market share in daily fantasy sports through its distinctive approach to player engagement. The platform operates in more than 45 jurisdictions and has demonstrated consistent revenue growth while maintaining profitability and building a community of millions of active users.
The company’s innovative contest formats include free-to-play options and peer-to-peer tournament structures that allow participants to compete directly against one another rather than traditional house-edge models.
“The acquisition of PrizePicks underscores our ability to execute on our ambitious investment strategy,” said Stepan Dlouhy, Allwyn’s chief investment officer. “The United States gaming and entertainment market has always been a compelling opportunity, and our focus has been on finding the right entry points.”
Operational Continuity and Growth Plans
PrizePicks will maintain its independent brand identity and current management structure following the transaction’s completion. CEO Mike Ybarra will continue leading operations, while co-founder Adam Wexler will remain on the company’s board of directors.
Allwyn plans to apply its global resources and operational expertise to accelerate PrizePicks’ expansion initiatives, enabling the platform to reach additional markets and diversify its product offerings.
The transaction requires regulatory approvals and is expected to close during the first half of 2026.
Recent Corporate Developments
The PrizePicks acquisition follows several strategic moves by Allwyn to reshape its portfolio. In July, the company divested its casino operations in Germany and Australia while completing the purchase of the remaining 15.51% minority stake in Stoiximan, the sports betting and iGaming operator serving Greece and Cyprus markets.
PrizePicks has recently obtained two new operating licenses, positioning the company for continued expansion across regulated US markets. The platform’s peer-to-peer fantasy contest model has emerged as a key differentiator, attracting diverse player demographics and setting it apart from traditional daily fantasy sports competitors.
The acquisition aligns with Allwyn’s international growth strategy and strengthens its presence in the North American gaming market through targeted acquisitions and strategic partnerships.
