PrizePicks valued at $2.5bn as Allwyn takes 62% stake for $1.6bn
Further earnouts could give the US DFS operator a maximum enterprise value of $4.15bn, as Allwyn says acquisition will be "highly complementary" to existing business
Allwyn has acquired a 62.3% stake in US DFS operator PrizePicks for an initial cash consideration of $1.6bn, valuing the Atlanta, Georgia-based business at $2.5bn (£1.85bn).
Allywn, the pan-European lottery, sports betting and igaming operator, said additional cash could be paid out based on PrizePicks hitting certain performance indicators over the next three years.
Should those targets be hit, the agreement could value PrizePicks at an implied enterprise value of $4.15bn. That would come with around $1bn in performance-related payments.
The transaction is expected to close in H1 2026, subject to standard closing conditions.
Founded in 2015, PrizePicks delivered adjusted EBITDA of $339m in the 12 months ending June 2025, with revenue up 60% year on year.
PrizePicks will continue to operator as a standalone brand under the Allwyn umbrella, with current CEO Mike Ybarra being retained.
Ybarra’s senior leadership team will also remain in situ while retaining the majority of their existing ownership interest.
PrizePicks’ founder Adam Wexler, who was replaced as CEO by Ybarra in August 2024, will remain on the PrizePicks board.
The transaction will significantly ramp up Allwyn’s presence in the US, where it currently runs the Illinois Lottery.
Allwyn said the addition of PrizePicks was “highly complementary” and would play a key role in its aspirations to become the “world’s leading gaming entertainment company”.
“With Allwyn’s scale and resources, PrizePicks will have the support to expand and innovate faster, reaching more fans than ever before,” the business noted.
Allwyn’s move for PrizePicks comes after it took a majority stake in Greek operator Novibet in December.
The firm also owns OPAP, and by extension Stoiximan, while it also holds a stake in Brazilian market leader Betano.
Allwyn was valued at €11.2bn in August after its owner, KKCG, sold a 4.27% stake in the business to Czech VC fund J&T Arch for €500m.
Earlier this year, PrizePicks turned off its against-the-house offering across the US, instead switching to a peer-to-peer model in its live jurisdictions.
Freshfields US provided legal advice to Allwyn during the process. PrizePicks retain Moelis & Company as its financial adviser and Cooley as legal counsel.
Robert Chvátal, Allwyn CEO, said: “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.
“PrizePicks has created an intuitive platform that simplifies the process of making skilled predictions. I look forward to partnering with Mike and the PrizePicks team to support the growth of the business.”
Mike Ybarra, PrizePicks CEO, added: “Today marks the start of an exciting new chapter for PrizePicks and our growing community of players.
“There has never been a more electrifying time to shape the future of fan-first entertainment.
“By joining forces with Allwyn, a like-minded and disruptive company that shares our passion for bold product innovation, we will accelerate our mission to make our games more interactive, engaging and rewarding for fans everywhere.”