For an initial cash payment of $1.6 billion, PrizePicks, which claims to be the biggest daily fantasy sports (DFS) company in North America, is selling lottery operator Allwyn a 62.3% share in the company, giving the seller an enterprise value of $2.5 billion.
Last month, there were rumors that PrizePicks, a firm based in Atlanta, might be preparing to sell. According to some market watchers, the company may seek a price of at least $2 billion. According to a release, Allwyn's cash consideration might rise by up to $1 billion if privately held PrizePicks meet specific financial performance goals over the next three years, potentially hitting the target with an enterprise value as high as $4.15 billion.
"PrizePicks will operate as a standalone brand within Allwyn, led by its CEO Mike Ybarra and the existing leadership team who will be retaining the majority of their existing ownership interest,” according to the statement.
The deal, which is anticipated to completion in the first half of 2026, will be financed by Allwyn using a combination of debt and cash on hand.
Allwyn might be interested in forecasting markets
Perhaps Allwyn was drawn to PrizePicks' possible entry into the rapidly expanding prediction markets market.
The National Futures Association (NFA) maintains a file with the DFS firm. Gaming businesses' NFA registrations are significant because the Commodities Futures Trading Commission (CFTC), the regulatory authority that yes/no exchange operators report to, views the organization as a "registered futures association."
Because Polymarket and Kalshi, the two biggest operators of event contracts platforms, are reportedly considering financing rounds that would value those companies at $9 billion and $5 billion, respectively, Allwyn is getting cost-effective exposure to the prediction markets industry if PrizePicks pursues them seriously.
Allwyn might have gotten a good deal on PrizePicks for more immediate, concrete reasons. PrizePicks' market share and revenue are skyrocketing in Arizona and Massachusetts, the two states that release DFS-specific data, with the latter outpacing rival Underdog Fantasy by a significant margin. In terms of earnings before interest, taxes, depreciation, and amortization (EBITDA), PrizePicks is likewise profitable.
“PrizePicks generated Adjusted EBITDA2 of USD 339 million in the 12 months to June 2025, achieving revenue growth of over 60% year-on-year and delivering strong cash flow generation over the same period,” according to the statement.
Allwyn Increases US Presence with PrizePicks Stake
Based in Switzerland Although Allwyn is one of the biggest lottery operators in Europe, its exposure in the US is mostly limited to its partnership with the Illinois Lottery. The majority control of PrizePicks will significantly alter that.
Over forty-five states are served by the DFS organization. In order to avoid legal problems in certain areas, it recently switched to a player vs. player (PVP) paradigm. Player vs. house DFS is presently available on PrizePicks in just three states: Virginia, Texas, and North Carolina.
“This is a significant European investment, and Allwyn’s biggest in the United States to date. 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,” said Allwyn CEO Robert Chvatal in the statement.
