Allwyn International has struck a landmark agreement to buy a controlling stake in PrizePicks, marking its boldest move yet into the U.S. sports and entertainment market. The multinational lottery operator confirmed it will acquire roughly 62.3% of the Atlanta-based daily fantasy sports (DFS) company for $1.6 billion in cash, giving PrizePicks an upfront enterprise value of $2.5 billion. If future performance targets are met, the total valuation could climb to $4.15 billion.

The transaction, which represents Allwyn’s largest-ever acquisition, is expected to close in the first half of 2026 pending regulatory approvals. Financing will be drawn from a mix of existing cash and debt facilities.

Strengthening Allwyn’s U.S. Presence

The purchase extends Allwyn’s reach beyond its current U.S. operations, which include managing the Illinois Lottery. The deal follows a wave of expansion moves for the company, including the takeover of the U.K.’s National Lottery, a 70% stake in Instant Win Gaming in 2024, and a strategic partnership with Formula 1 earlier this year.

Karel Komarek, founder and chairman of Allwyn, explained the significance of the transaction: “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.”

Robert Chvátal, Allwyn’s CEO, added that the deal represents “Allwyn’s biggest in the United States to date,” emphasizing that 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’ Rapid Growth and Innovation

Founded in 2015 by Adam Wexler and Jay Deuskar, PrizePicks has built a strong reputation as North America’s leading DFS platform. Unlike traditional formats, the platform allows fans to make over/under predictions on player statistics, simplifying the fantasy experience. It has also pioneered peer-to-peer tournament-style contests and introduced free-to-play games, attracting millions of monthly active users across more than 45 jurisdictions.

The company reported adjusted EBITDA of $339 million in the 12 months ending June 2025, reflecting more than 60% revenue growth year over year. This strong financial performance has helped cement its standing as one of the fastest-growing gaming operators in the United States.

Mike Ybarra, CEO of PrizePicks, expressed enthusiasm about the next phase of growth: “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.”

Co-founder Adam Wexler echoed the sentiment, noting that the original goal was to make fantasy sports more accessible. “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.”

Looking Beyond Daily Fantasy

While DFS remains the company’s foundation, PrizePicks executives signaled ambitions to broaden its scope. Ybarra revealed that early conversations with Allwyn aligned on the goal of building more than a DFS product: “We don’t want to be a bolt-on to another company. We want to be meaningful. We’ll essentially run the United States business for Allwyn. That’s significant. That gives us a lot of accountability.”

Both Ybarra and Deuskar highlighted the company’s long-term ambition to transition from a fantasy sports operator to a full entertainment platform. Potential expansions could include predictions related to cultural events, music, film, or other live experiences. “Jay and Adam have always had a vision to take prediction beyond sports,” Ybarra explained, emphasizing the broader entertainment potential.

PrizePicks also continues to explore emerging opportunities in prediction markets. Although regulatory uncertainties remain, Ybarra acknowledged the space as “a big opportunity,” adding that the company is closely monitoring developments across U.S. states.

Leadership Continuity and Future Plans

Despite the ownership change, PrizePicks will remain a standalone brand within the Allwyn portfolio. Ybarra will continue as CEO, supported by the existing leadership team, most of whom will retain significant ownership stakes. Wexler will maintain his role on the board of directors, ensuring alignment with the founding vision.

Stepan Dlouhy, Allwyn’s chief investment officer, positioned the deal as part of a deliberate expansion strategy: “The United States gaming and entertainment market has always been a compelling opportunity, and our focus has been on finding the right entry points. We took the first step in 2023 with the acquisition of the operator of the Illinois Lottery and were pleased to subsequently acquire a majority stake in IWG in 2024. Today, we announce the next major milestone on our journey.”

For both companies, the agreement represents a pivotal opportunity to reshape casual entertainment worldwide. Or as Ybarra put it, combining PrizePicks’ innovation with Allwyn’s scale sets them on course to “be the No. 1 gaming company in the world.”