Published on: September 22, 2025, 11:32h.
Updated on: September 22, 2025, 11:32h.
- Swiss lottery company acquiring 62.3% stake in DFS leader
- Transaction includes an upfront cash payment of $1.6 billion, valuing PrizePicks at $2.5 billion
- This valuation exceeds recent estimates for PrizePicks
PrizePicks, touted as the largest daily fantasy sports (DFS) entity in North America, is divesting a 62.3% interest to lottery operator Allwyn for an initial cash outlay of $1.6 billion, setting an enterprise valuation of $2.5 billion for the company.
Speculations emerged last month regarding PrizePicks’ potential sale. Market analysts suggested the company might aim for a valuation of at least $2 billion. If PrizePicks meets predetermined financial benchmarks within the next three years, the cash amount from Allwyn could increase by up to $1 billion, raising the company’s enterprise value to as much as $4.15 billion, as per company statements.
“PrizePicks will function as a distinct brand under Allwyn, led by CEO Mike Ybarra and the current leadership team, who will maintain the majority of their ownership stakes,” the statement indicated.
Allwyn plans to fund this transaction, expected to finalize in the first half of 2026, through a combination of cash reserves and debt.
Allwyn’s Strategic Interest in Prediction Markets
PrizePicks’ possible entry into the burgeoning prediction markets could have heightened Allwyn’s interest in the acquisition.
The DFS operator has submitted a registration with the National Futures Association (NFA), which is significant since the NFA is recognized as a “registered futures association” by the Commodity Futures Trading Commission (CFTC), the governing body overseeing yes/no exchange operators.
If PrizePicks actively pursues prediction markets, Allwyn gains cost-effective entry into this growing sector, as top event contract platforms like Polymarket and Kalshi are reportedly looking for financing rounds that could value them at $9 billion and $5 billion, respectively.
Allwyn may have secured a favorable deal on PrizePicks for various compelling reasons. In Arizona and Massachusetts, the two states that provide DFS-specific statistics, PrizePicks is enjoying significant revenue growth outpacing competitors like Underdog Fantasy. The company also has a positive EBITDA outlook.
“PrizePicks recorded an Adjusted EBITDA of USD 339 million in the 12 months leading up to June 2025, achieving over 60% year-on-year revenue growth while generating strong cash flow throughout the same period,” the statement affirmed.
Allwyn Expands Its US Footprint with PrizePicks Acquisition
Allwyn, based in Switzerland and one of Europe’s leading lottery operators, has primarily had exposure in the US through its partnership with the Illinois Lottery. This situation is set to transform significantly with its majority ownership of PrizePicks.
The DFS entity operates in over 45 states and recently transitioned to a player versus player (PVP) model to sidestep regulatory hurdles in many areas; at present, it offers a player versus house DFS model only in three states: North Carolina, Texas, and Virginia.
“This marks a significant European investment and is Allwyn’s largest venture in the United States to date. PrizePicks is a forward-thinking company empowering a new generation of sports fans who wish to actively engage with their favorite teams and athletes,” stated Allwyn CEO Robert Chvatal in the announcement.