Allwyn International continues its M&A run announcing that it has agreed terms to acquire PrizePicks, the largest daily fantasy sports (DFS) operator in North America.
Deal terms see Allwyn acquire a majority 62.3% stake in PrizePicks for an initial cash consideration of $1.6bn. The deal values PrizePickis at $2.5bn, while further cash considerations could see valuation rise to $4.15bn- subject to certain conditions being met over the next three years.
The deal stands out as Allwyn biggest M&A play ever and a huge expansion of its US standing. Founded in 2015 by gaming entrepreneurs Adam Wexler and Jay Deuskar, PrizePicks is recognised as one of the leading DFS brands for major US sports, alongside competitor Underdog.
Of significance to its growth, the Atlanta-based company operated as an against-the-house fantasy sports product for many years before launching a peer-to-peer tournament-style offering where players tested their skills against each other.
The company’s products have gained a lot of traction with customers, offering an experience similar to a betting exchange or sportsbook without being a direct betting product.
The DFS brand is present in more than 45 US jurisdictions, and attracts millions of monthly active users and is noted for delivering “high double-digit annual revenue growth alongside strong profitability”.
Karel Komarek Chairman of Allwyn International, said: “This acquisition will continue to drive Allwyn’s momentum and expand our business in the US. PrizePicks has established its credentials as an industry pioneer, revolutionising the way fans engage with the athletes they love, making the contests more thrilling and immersive. We are excited to work with PrizePicks to shape the future of this new frontier in casual entertainment.”
Power play on Lotto & DFS
The PrizePicks deal provides Allwyn its long-desired entry point into the wider US sports and entertainment sector, building on its existing managed contract of the Illinois Lottery.
The acquisition bolsters Allwyn’s objective to become the outright global leader in lottery entertainment (B2B/B2C). Ambitions are underpinned by a focus on technology, responsible play, and community impact as PrizePicks joins its stable of European brands including OPAP (Greece), Casinos Austria, LottoItalia and the Czech SAZKA.
Robert Chvatal: Allwyn International
Robert Chvatal, CEO of Allwyn International, commented: “This is a significant European investment, and Allwyn’s biggest in the US to date. PrizePicks is an entrepreneurial company that is empowering a new generation of fans who want to engage with their favourite sports and athletes, not just spectate.
“PrizePicks has created an intuitive platform that simplifies the process of making skilled predictions. I look forward to partnering with Mike and the PrizePicks team to support the growth of the business.”
Detailing first insights to SBC, Allwyn stated that its acquisition of PrizePicks should be viewed as a “standalone DFS play”. As it stands, dealmakers have no intention of applying a sportsbook platform to PrizePicks, with leadership focused instead on the “visible co-synergies that can be applied to both DFS and Lotteries, enhancing PrizePicks’ position as DFS’s most innovative player.”
Stepan Dlouhy, Allwyn Chief Investment Officer, added: “The acquisition of PrizePicks underscores our ability to execute on our ambitious investment strategy. The United States gaming and entertainment market has always been a compelling opportunity, and our focus has been on finding the right entry points.
The deal also marks Allwyn’s second strategic acquisition in North America, following its purchase of a 70% stake in Instant Win Games (IWG) last year, further strengthening its long-term ambitions in the US market.
PrizePicks opens the Western Front
PrizePicks will continue to operate as a standalone brand within the Allwyn portfolio.
Co-founder Adam Wexler will continue to serve on the Board of Directors, ensuring continuity with the company’s founding vision.
Mike Ybarra: PrizePicks
Mike Ybarra, CEO of PrizePicks, said: “Today marks the start of an exciting new chapter for PrizePicks and our growing community of players.
“There has never been a more electrifying time to shape the future of fan-first entertainment. By joining forces with Allwyn, a like-minded and disruptive company that shares our passion for bold product innovation, we will accelerate our mission to make our games more interactive, engaging and rewarding for fans everywhere.”
The transaction represents Allwyn’s largest ever M&A investment and signals its intent to become a dominant force in international gaming and entertainment. For PrizePicks, the deal offers the backing of a global operator with the capacity to support its rapid growth trajectory and enhance its market-leading position in DFS.
