Posted on: September 22, 2025, 11:32h.
Last updated on: September 22, 2025, 11:32h.
- Swiss lottery operator buying 62.3% of DFS giant
- Deal includes initial cash payment of $1.6 billion, placing enterprise value of $2.5 billion on PrizePicks
- That exceeds latest valuation estimate on PrizePicks
PrizePicks, which says it’s the largest daily fantasy sports (DFS) company in North America, is selling a 62.3% stake to lottery operator Allwyn for an initial cash payment of $1.6 billion, placing an enterprise value of $2.5 billion on the seller.
Rumors surfaced last month that Atlanta-based PrizePicks could be positioning itself for a sale with some market observers saying the company could pursue a valuation of at least $2 billion in a sale. Should privately held PrizePicks achieve certain financial performance objectives over the next three years, the cash consideration paid by Allwyn could increase by as much as $1 billion, potentially tagging the target with an enterprise value as high as $4.15 billion, according to a statement.
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.
Allwyn will finance the transaction, which is expected to close in the first half of 2026, with a mix of cash on hand and debt.
Allwyn May Be Eyeing Prediction Markets
PrizePicks’ potential foray into the fast-growing prediction markets space may have been a source of allure for Allwyn.
The DFS company has a filing with the National Futures Association (NFA). NFA registrations by gaming companies are relevant because the entity is deemed a “registered futures association” by the Commodities Futures Trading Commission (CFTC), which is the regulatory body to which operators of yes/no exchanges answer.
If PrizePicks earnestly pursues prediction markets, Allwyn is getting cost-effective exposure to that industry because Polymarket and Kalshi — the two largest operators of event contracts platforms — are said to be considering financing rounds that would value those companies at $9 billion and $5 billion, respectively.
Allwyn may have nabbed an attractive price on PrizePicks for more tangible, here-and-now reasons. In Arizona and Massachusetts — the two states that break out DFS-specific data — PrizePicks’ market share and revenue are soaring with the latter growing well in excess of rival Underdog Fantasy. PrizePicks is also positive on the basis of earnings before interest, taxes, depreciation, and amortization (EBITDA).
“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 Boosts US Footprint with PrizePicks Stake
Switzerland-based Allwyn is one Europe’s largest lottery operators, but its US exposure is largely confined to a relationship with the Illinois Lottery. That’s going to change in significant fashion via majority control of PrizePicks.
The DFS company operates in more than 45 states. It recently changed to a player vs. player (PVP) model to avoid regulatory issues in various states. Today, PrizePicks currently offers player vs. house DFS in just three states — North Carolina, Texas, and Virginia.
“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.
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