Allwyn buys majority stake in PrizePicks for $2.5bn

Summary

Allwyn International AG is acquiring a 62.3% stake in PrizePicks — the leading daily fantasy sports (DFS) operator in North America — for $1.6bn up front. The deal includes performance-based consideration that could push the implied enterprise value up to $4.15bn if agreed targets are met over the next three years. Despite the headline saying $2.5bn, the core transaction figure disclosed for the majority stake is $1.6bn with potential earn-outs increasing total value.

PrizePicks, founded in 2015, has grown rapidly with millions of monthly active users across 45+ US jurisdictions, strong profitability and high double-digit annual revenue growth. For the 12 months to June 2025 it generated Adjusted EBITDA of $339m and revenue growth of over 60% year-on-year.

PrizePicks will continue to operate as a standalone brand under CEO Mike Ybarra and the existing leadership team, who will retain significant ownership. The transaction is expected to close in the first half of 2026, subject to regulatory approvals, and Allwyn plans to fund the purchase via a mix of cash and debt.

Key Points

Allwyn is buying 62.3% of PrizePicks for $1.6bn, with potential earn-outs raising implied value to as much as $4.15bn.
PrizePicks is a leader in DFS with millions of monthly active users and presence in over 45 US jurisdictions.
The company reported Adjusted EBITDA of $339m for the 12 months to June 2025 and >60% revenue growth YoY.
PrizePicks will remain a standalone brand led by CEO Mike Ybarra; founders and execs keep significant ownership and board roles.
Allwyn sees this as a strategic entry into the US sports and casual entertainment market, building on prior US investments (Illinois Lottery operator, IWG stake).
Deal closing is subject to regulatory approvals and expected in H1 2026; financing will be via cash and debt.
Allwyn highlights shared focus on product innovation, responsible play and community impact as rationale for the fit.

Context and Relevance

This acquisition marks one of Allwyn’s largest US moves to date and signals European capital backing for the rapidly expanding US DFS and casual sports-entertainment space. It underscores continued consolidation and investment in fan-first, tech-driven gaming products that prioritise simple, accessible engagement models. For operators, investors and regulators, the deal is a noteworthy indicator of where growth and scale are being chased: monetisable engagement, rapid user growth and strong cash generation.

Author style

Punchy: This is a big strategic play — Allwyn’s move accelerates its US ambitions and shines a light on PrizePicks as a fast-growing, profitable platform. Read the details if you track M&A, sports-tech or evolving consumer gaming models.

Why should I read this?

Short answer: because this changes the landscape. If you follow gaming, sports betting, or digital entertainment, this is the kind of deal that reshapes who controls distribution and product innovation in the US casual-sports market. We skimmed the puff and pulled out the figures and dates so you don’t have to — closing expected H1 2026, $1.6bn up front for 62.3% (plus earn-outs), and strong recent EBITDA and growth numbers. Worth a quick read if you care about where fan-focused gaming is headed.

Source

Source: https://g3newswire.com/allwyn-buys-majority-stake-in-prizepicks-for-2-5bn/