European lottery powerhouse Allwyn is making a bold move into the U.S. fantasy sports market. The company announced that it will acquire a 62% majority stake in PrizePicks, an Atlanta-based daily fantasy sports operator, in a deal valuing the business at $1.6 billion. The transaction is expected to close in the first half of 2026.
The acquisition represents a pivotal step in Allwyn’s strategy to diversify beyond traditional lottery operations and tap into the fast-growing U.S. gaming ecosystem. For PrizePicks, the partnership provides capital, credibility, and international reach to scale its business further.
A Platform for Expansion
PrizePicks, led by CEO Mike Ybarra, currently operates in 45 states. With Allwyn’s backing, Ybarra predicts nationwide coverage and mainstream acceptance in the coming years. Beyond fantasy sports, the company is positioning itself as a broader entertainment platform, extending into cultural prediction markets, entertainment events, and AI-powered user tools.
Daily fantasy sports occupy a unique space in the U.S. gaming landscape. Unlike traditional sports betting, fantasy contests are legally recognized as games of skill, allowing PrizePicks to operate in more jurisdictions. This regulatory positioning has made it one of the most resilient entry points into America’s fragmented gaming market.
Allwyn’s Diversification Play
Allwyn, the flagship company of Czech billionaire Karel Komarek’s KKCG group, has been aggressively diversifying:
- Took over the running of the UK National Lottery in 2024.
- Operates lotteries in Italy, Austria, Greece, and the Czech Republic.
- Holds a 36.75% stake in Kaizen Gaming (Betano brand).
- Acquired a 51% stake in Novibet, the Greek betting firm.
- Expanded into the U.S. through Allwyn North America, which manages the Illinois State Lottery.
- Announced a partnership with Formula One earlier this year.
Despite this broad portfolio, 90% of Allwyn’s revenue still comes from lottery operations. The PrizePicks deal is a clear signal that the group is seeking tech-enabled, high-growth platforms that go beyond traditional models.
Market Context
The U.S. gaming industry has been transformed since the Supreme Court struck down PASPA in 2018, which legalized sports betting at the state level. Sportsbooks have spread rapidly, but iCasino gaming remains limited to a handful of states. Analysts suggest that iCasino could eventually double the size of the regulated online market, given its higher engagement levels and broader demographic appeal compared to sports betting.
PrizePicks is also exploring non-sports prediction markets — such as music awards and entertainment events — to broaden appeal. Combined with investments in AI-based decision tools, this could position the company as more than just a sports platform.
The Financial Structure
Under the agreement, Allwyn will initially acquire a 62% stake in PrizePicks. The deal sets an enterprise value of $2.5 billion, but if PrizePicks achieves performance targets over the next three years, the implied valuation could climb to $4.15 billion.
This structure reflects both the rapid growth potential of the U.S. fantasy sports space and the risk profile of a still-evolving regulatory environment.
Risks and Opportunities
While PrizePicks is positioned for growth, the U.S. gaming sector is under increased scrutiny. The gamified design of online platforms has sparked concerns over problem gambling, particularly among younger users. Several states have already launched compliance investigations and imposed fines on operators. Balancing aggressive expansion with regulatory trust will be critical.
For Allwyn, the acquisition is about scale, diversification, and future-proofing. For PrizePicks, it’s about securing the resources to transform from a fantasy sports operator into a mainstream digital entertainment brand.
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