• European lottery giant Allwyn has agreed to acquire a 62.3% majority stake in US daily fantasy sports ( DFS) operator PrizePicks.
• The deal involves an initial cash payment of $1.6 billion, valuing PrizePicks at an enterprise value of $2.5 billion upfront.
• The total valuation could rise to as much as $4.15 billion based on earn-out clauses tied to the company’s future performance.
• The acquisition is a landmark move for Allwyn, providing it with a major, profitable entry into the high-growth US digital sports market.
• PrizePicks’ current leadership team, including CEO Mike Ybarra, will remain in place to run the brand as a standalone business within the Allwyn group.

Allwyn International, the pan-European lottery powerhouse and new operator of the UK National Lottery, has made a blockbuster entry into the American market, agreeing to acquire a majority stake in the fast-growing daily fantasy sports operator, PrizePicks.

The deal, announced on Monday, will see Allwyn pay $1.6 billion in cash for a 62.3% share of the company. It represents one of the most significant transatlantic M&A transactions in the iGaming and fantasy sports sector this year.

The Financials: A Multi-Billion Dollar Bet

The terms of the acquisition reflect PrizePicks’ impressive growth and profitability. The initial $1.6 billion cash consideration gives the company an upfront enterprise value of $2.5 billion. However, the deal also includes significant performance-based earn-outs over the next three years, which could push the total valuation to as high as $4.15 billion.

This high price tag is supported by PrizePicks’ strong financial performance. In the 12 months leading up to June 2025, the company generated an adjusted EBITDA of $339 million, with its year-on-year revenue growth exceeding 60%.

Allwyn’s Digital Transformation Accelerates

The acquisition is the most significant move yet in Allwyn’s recently declared strategy to pivot towards digital gaming. It follows the high-profile hiring of former Betfred US chief Kresimir Spajic to lead a newly created “Allwyn Digital” division. The PrizePicks deal provides this new unit with an immediate, large-scale, and profitable asset in the world’s most dynamic sports market.

This is Allwyn’s first major foray into the US gaming space, beyond its existing management contract for the Illinois Lottery.

Continuity and Growth

Under the terms of the agreement, which is expected to close in the first half of 2026, PrizePicks’ current and successful leadership team will remain in place. CEO Mike Ybarra will continue to run the business as a standalone entity within the wider Allwyn group, and co-founder Adam Wexler will remain on the board.

“ Today marks the start of an exciting new chapter for PrizePicks,” said Ybarra. “ By joining forces with Allwyn, a like-minded and disruptive company… we will accelerate our mission to make our games more interactive, engaging and rewarding for fans everywhere.”

Allwyn CEO Robert Chvatal added: “ PrizePicks is an entrepreneurial company that is empowering a new generation of fans who want to engage with their favourite sports and athletes, not just spectate.” The deal provides the lottery giant with a powerful and immediate foothold in the lucrative US digital sports market.