Allwyn, the multinational lottery and gaming company, has struck its biggest US investment to date by agreeing to acquire a controlling interest in PrizePicks, the largest daily fantasy sports (DFS) operator in North America. Speaking to SiGMA News, a spokesperson said that, for now, Allwyn’s fantasy sports offerings will remain focused on the U.S. market, at least in the short term.
The investment is part of Allwyn’s strategy to expand beyond lotteries and into the sports and entertainment market in the United States, where the company already operates the Illinois Lottery. Asked why Allwyn believes fantasy sports is the right growth avenue, the spokesperson explained that the sector has become a growing niche over the years, appealing to an increasingly broad audience.
Under the deal, that Robert Chvátal, Allwyn’s chief executive, called “a significant European investment, and Allwyn’s biggest in the United States to date,” the company will purchase approximately 62.3% of PrizePicks for an expected initial cash consideration of $1.6bn, giving the business an upfront enterprise value of $2.5bn. The agreement also includes performance-based payments that could lift the total valuation to as much as $4.15bn over the next three years.
Betting on fantasy sports
Founded in 2015 and based in Atlanta, PrizePicks has grown to become a leader in daily fantasy sports, with millions of monthly active users across more than 45 US jurisdictions, according to the company press release. Robert Chvátal explained: “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.”
For Allwyn, the acquisition represents a calculated move into a sector that has been attracting younger, digitally native audiences. Karel Komarek, the company’s founder and chair, commented: “This acquisition will continue to drive Allwyn’s momentum and expand our business in the United States. PrizePicks has established its credentials as an industry pioneer, revolutionising the way fans engage with the athletes they love, making the contests more thrilling and immersive.”
A wider push into global entertainment
Allwyn has spent the past two years broadening its portfolio. In 2024, it acquired a 70% stake in Instant Win Gaming, a supplier of digital lottery games, and earlier this year announced a deal to buy into Novibet, the online sports betting and gaming operator. It has also inked global partnerships with Formula 1 and McLaren.
For Allwyn, which has long dominated traditional lotteries across Europe, the purchase of PrizePicks is part of a bid to reposition itself as a diversified gaming and entertainment powerhouse seeking to capture new audiences.
The US daily fantasy sports market is now one of the most dynamic parts of the industry, drawing millions of players who use their sporting knowledge to compete in contests rather than placing conventional bets. PrizePicks’ success reflects that shift in behaviour, and Allwyn’s backing is expected to give the platform fresh firepower to compete against established rivals.
Industry consolidation and expansion
PrizePicks has been expanding at pace, recording adjusted EBITDA of $339m in the 12 months to June 2025, with revenue growth of more than 60% year-on-year. Its CEO, Mike Ybarra, said: “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.”
PrizePicks’ founder, Adam Wexler, also welcomed the deal, saying: “From day one, we set out to create a more accessible style of fantasy sports that could appeal to casual players. As the industry evolved, PrizePicks was the first to go all-in on the simplest prediction model and take it to scale, reshaping how fans engage with fantasy sports. Now, with Allwyn’s backing, we’ll accelerate our vision and bring our games to even more players on a much bigger stage.”
The transaction, expected to close in the first half of 2026, will be financed through a mix of cash and debt. Minority shareholders will retain stakes with liquidity provisions set for five years after completion.
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