Allwyn details financing plans for $1.6 billion PrizePicks acquisition

Summary

Allwyn International has launched a USD 1.64 billion Term Loan B to fund its acquisition of a 62.3% majority stake in PrizePicks, with an initial cash consideration of USD 1.6 billion. The deal values PrizePicks at an enterprise value of USD 2.5 billion today, with contingent earn-outs potentially lifting that to USD 4.15 billion if performance targets are met over the next three years. PrizePicks will operate as a standalone brand under Allwyn, with CEO Mike Ybarra and the current leadership remaining in place and retaining most of their ownership. Subject to closing conditions, completion is expected in Q1 next year.

Separately, Allwyn issued a Q3 trading update noting a tough September for sports betting margins due to unusually customer-friendly results, though it described the impact as temporary and mitigated by diversification into lottery and other verticals. The company has also been busy with other strategic moves, including a planned merger with OPAP and divestments and acquisitions around its casino and Stoiximan interests, plus the launch of an Allwyn Digital division.

Key Points

Allwyn has arranged a USD 1.64 billion Term Loan B to finance the PrizePicks deal and associated fees.
The company will acquire a 62.3% majority stake in PrizePicks for an initial USD 1.6 billion cash consideration.
PrizePicks’ implied enterprise value is USD 2.5 billion today, with potential upside to USD 4.15 billion tied to future performance metrics.
PrizePicks will remain a standalone brand; CEO Mike Ybarra and the leadership team will continue to run the business and keep most of their ownership.
Deal completion is targeted for Q1 next year, subject to customary closing conditions.
Allwyn reported a challenging September for sports betting margins but flagged underlying trends as positive and noted diversification limits downside risk.
The acquisition sits alongside other major Allwyn moves: the OPAP merger, casino asset sales, full acquisition of Stoiximan minority stakes and the formation of Allwyn Digital.

Context and relevance

This transaction marks a major strategic push by Allwyn into the US daily fantasy sports (DFS) market and signals continued consolidation and inward investment into US sports-betting adjacent businesses. The sizeable loan package and contingent valuation upside show how buyers are structuring large cross-border deals in the current M&A climate — mixing up-front cash with performance-linked payments. For competitors, investors and regulators, the deal alters competitive dynamics and valuation benchmarks in DFS and sports-betting tech.

Author’s take

Punchy: This isn’t just another cheque — it’s a statement. Allwyn is using heavy leverage plus earn-outs to capture a big slice of the US DFS market while keeping PrizePicks’ team intact. If you’re tracking market consolidation or valuations in sports betting and fantasy sports, the structure and potential upsides here are worth a close look.

Why should I read this?

Short version — big money, big move, big implications. Allwyn’s financing and valuation terms tell you how serious it is about the US market and where price-setting for prized tech assets is heading. We’ve skimmed the detail so you don’t have to: read this if you care about M&A trends, US expansion plays or the future of DFS.

Source

Source: https://igamingbusiness.com/finance/allwyn-financing-prizepicks-acquisition/