Lottery Giant Allwyn Purchases Majority Of PrizePicks In Record Fantasy Acquisition

In a deal that might value the daily fantasy powerhouse at over $4 billion, Allwyn Entertainment, the company that operates the lotteries in Illinois and the UK, has agreed to purchase PrizePicks. This is by far the biggest acquisition in the history of American fantasy sports.

The initial payment of $1.6 billion for a 62.3% share in PrizePicks was disclosed by Allwyn in a press release on Monday. Its entire business would be worth $2.5 billion.

But the agreement also stipulates that PrizePicks will only get compensation if it satisfies “certain performance metrics.” Although those figures were not made public, the other payouts might total up to $1 billion, making the total payment for 62.3% of PrizePicks $2.6 billion. That implies that the entire PrizePicks company is worth $4.15 billion.

The first half of 2026 is when the deal is anticipated to close.

Karel Komarek, the founder and chair of Allwyn, said in a statement that the acquisition will “continue to drive Allwyn’s momentum and expand our business in the United States.” “PrizePicks has established its credentials as an industry pioneer, transforming the way fans engage with the sportsmen they love, making the contests more engaging and immersive.

“We are thrilled to collaborate with PrizePicks to help mould this emerging area of casual entertainment.”

The management staff of PrizePicks remains on
The remaining 37.7% of PrizePicks will continue to be held by the company’s existing leadership team, who will also continue to administer the operation as an arm of Allwyn.

In a statement, PrizePicks CEO Mike Ybarra said, “Today is the beginning of an exciting new chapter for PrizePicks and our expanding player community. The opportunity to influence the direction of fan-first entertainment has never been more exciting.

“We will accelerate our mission to make our games more interactive, engaging, and rewarding for fans worldwide by partnering with Allwyn, a disruptive and like-minded company that shares our passion for bold product innovation.”

Although precise expansion plans were not provided, the news statement stated that the agreement will provide PrizePicks with “the support to expand and innovate faster.”

Courtesy: https://www.covers.com, https://www.casino.org, https://pechanga.net