Allwyn Acquires Majority Stake in PrizePicks

European lottery company Allwyn International has inked a deal for the purchase of a controlling stake in New York-based daily fantasy sports (DFS) operator PrizePicks for as much as $4.15 billion. The agreement, announced on Monday, significantly expands Allwyn's US operations, which, until now, had been confined to running the Illinois Lottery.

Under the terms of the deal, Allwyn will purchase a 62.3% stake in PrizePicks for an initial cash payment of $1.6 billion. The enterprise value of the company stands at $2.5 billion at closing, though the deal could cost the full $4.15 billion if the company meets performance targets within the subsequent three years.

The deal will close in the first half of 2026, subject to required regulatory authorizations and other usual conditions.

PrizePicks, founded in 2015, operates in 45 US states and has created a customer base of millions. The company reported adjusted EBITDA of $339 million for the 12 months ended June 2025, along with more than a 60% annual increase in revenues.

PrizePicks CEO Mike Ybarra and the executive team will remain in place, leading the brand as a subsidiary operating independently for Allwyn. Company co-founder Adam Wexler will also continue as a member of the company's board of directors and stated that the financial investment by Allwyn will accelerate PrizePicks' growth strategy.

Shifts to peer-to-peer

The acquisition comes shortly after PrizePicks completed a major change in its operations by abandoning its against-the-house DFS product in favor of a peer-to-peer model. This shift, finalized in August, applies across Canada, Washintgon DC, and the 45 U.S. states where it currently operates, 10 of which can currently only use the Streak free-to-play product. 

Previously branded as PrizePicks Arena in jurisdictions where the transition was already underway, the new peer-to-peer system has now replaced the old format entirely. “We are excited to offer players a more social and engaging DFS product that sets the standard for future innovation in the DFS industry,” said a spokesperson for PrizePicks. 

The gameplay remains similar, with users selecting between two and six athletes and predicting whether they will exceed or fall short of statistical projections.  However, instead of wagering against the operator, entries form sets whereby the best-scoring lineup walks away with the prize.

Players also receive pay-outs even without winning the group, depending on the entry size and whether they take the safe Flex option or the riskier Power option.

The move arrives amid increased interest from regulators. A few states have concluded that pick 'em-style DFS constitutes sports betting. This summer, California Attorney General Rob Bonta issued a non-binding opinion finding DFS gambling to violate the state statute.

The company proactively switched over to the peer-to-peer model prior to the court's decision, so the product aligns with one resilient enough for rising litigation.