European lottery and gaming operator Allwyn International has confirmed the acquisition financing details for its landmark deal to acquire a majority stake in
European lottery and gaming operator Allwyn International has confirmed the acquisition financing details for its landmark deal to acquire a majority stake in US Daily Fantasy Sports (DFS) leader PrizePicks. In a trading update issued on Monday, Allwyn announced it has secured a $1.64 billion Term Loan B facility. The proceeds will be used primarily to fund the initial $1.6 billion cash consideration for the 62.3% stake in PrizePicks, as well as covering associated fees and expenses related to the Allwyn PrizePicks acquisition.
The acquisition, first announced in September, marks Allwyn’s significant entry into the competitive US DFS market. The deal values PrizePicks initially at an enterprise value of $2.5 billion, with potential earn outs increasing this to $4.15 billion based on future performance. The European lottery group confirmed the transaction remains on track to close in the first quarter of 2026, subject to customary closing conditions. PrizePicks will continue to operate as a standalone brand within Allwyn, led by its current management team.
Alongside the acquisition financing news, Allwyn provided a brief Q3 trading update ahead of its full results release on 30 October. The company acknowledged a challenging September for its sports betting operations, citing “exceptionally” customer friendly sports results that negatively impacted margins across the industry.
However, Allwyn downplayed the long term significance, stating that such margin variations “average out over time.” The group emphasized that its diversification across lottery and other verticals helped mitigate the impact and that other underlying business trends remained “positive.” This resilience highlights the strength of Allwyn’s core lottery and gaming business model.
The PrizePicks acquisition is a cornerstone of Allwyn’s aggressive global expansion and digital transformation strategy. It follows several other major moves in recent months designed to reshape the lottery and gaming business into a more digitally focused global leader. These include the blockbuster merger agreement with Greek operator OPAP, the sale of non core land based casino assets, taking full control of Stoiximan, and the launch of the new Allwyn Digital division under Kresimir Spajic. Securing the $1.64 billion term loan demonstrates Allwyn’s ability to access significant capital to execute this ambitious M&A led growth plan.
Securing the $1.64 billion term loan for the Allwyn PrizePicks acquisition is a critical operational step, demonstrating the financial markets’ confidence in Allwyn’s strategy and its ability to execute large scale, cross border M&A. This acquisition financing package allows the European lottery giant to comfortably cover the substantial upfront cash requirement for the PrizePicks deal without overly straining its existing balance sheet. It solidifies Allwyn’s major push into the high growth US DFS market, providing a significant, profitable digital asset to complement its existing lottery operations and its newly formed Allwyn Digital division. The successful arrangement of this Term Loan B underlines the company’s transformation into a major player in the global lottery and gaming business M&A landscape.
The brief Q3 trading update, acknowledging the hit from customer friendly sports results, serves as a timely reminder of the inherent volatility in the sports betting vertical. While Allwyn rightly points out that its diversified model, heavily weighted towards the more stable European lottery segment, mitigates this impact, the margin pressure highlights the importance of scale and operational efficiency, factors driving its recent M&A activity like the OPAP merger. The PrizePicks acquisition further diversifies its revenue streams, adding a fast growing, digitally native US asset that operates under a different competitive and regulatory dynamic compared to its core European businesses. This strategic diversification, funded by significant debt, is key to Allwyn’s long term value creation narrative.
Ultimately, the successful acquisition financing for the PrizePicks deal reinforces Allwyn’s position as one of the most dynamic and acquisitive players in the global lottery and gaming business. While the Q3 margin headwinds are a minor footnote, the ability to secure substantial debt funding for a major US expansion speaks volumes about the market’s belief in the company’s vision. The focus will now shift to the smooth integration of PrizePicks and the execution of the broader digital transformation strategy under the Allwyn Digital banner, aiming to leverage this new US DFS market entry for sustained growth.
