(Corrects name to Ramy Ibrahim, not Ibrahim Ajami, in paragraphs 13-14) By Sabrina Valle and Jason Hovet NEW YORK/PRAGUE (Reuters) -European lottery giant Allwyn said on Monday it will acquire a majority stake in U.S. fantasy sports operator PrizePicks in a deal that values the Atlanta-based company at $1.6 billion. The move is a significant […]
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Allwyn buys $1.6-billion stake in fantasy sports operator PrizePicks to expand in US
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(Corrects name to Ramy Ibrahim, not Ibrahim Ajami, in paragraphs 13-14)
By Sabrina Valle and Jason Hovet
NEW YORK/PRAGUE (Reuters) -European lottery giant Allwyn said on Monday it will acquire a majority stake in U.S. fantasy sports operator PrizePicks in a deal that values the Atlanta-based company at $1.6 billion.
The move is a significant step in Allwyn’s strategy to expand beyond traditional lottery operations and deepen its presence in the U.S. gaming market.
The transaction, which is expected to close in the first half of 2026, gives Allwyn a foothold in the fast-growing daily fantasy sports segment and positions PrizePicks as its primary platform for U.S. expansion.
PrizePicks CEO Mike Ybarra said the deal and Allwyn’s support will help the company expand in the U.S. and build a broader entertainment platform that can scale across sports, culture, and prediction markets.
“We are in 45 states now. It’s my prediction that we will be in 50 states across the board, and this will be broadly accepted and regulated in the United States,” Ybarra said in an interview.
Allwyn is the flagship of Czech billionaire Karel Komarek’s KKCG investment group and has expanded quickly in recent years, gradually diversifying into online gaming.
Last year, it took over the running of Britain’s National Lottery. It also operates lotteries in Italy, Austria, Greece and the Czech Republic as well as interests in the United States. Earlier this year, Allwyn announced a partnership with Formula One.
It holds a 36.75% stake in Kaizen Gaming, which operates the Betano brand, and in December 2024 agreed to acquire a 51% stake in Novibet, a Greek online betting firm. In the U.S., it manages the Illinois State Lottery through Allwyn North America.
EXPANSION
According to a Reuters investigation, the accessibility and gamified design of online platforms have contributed to a surge in problem gambling cases, particularly among younger users. Several U.S. states have launched inquiries or imposed fines on operators over compliance and consumer protection issues.
Roughly 90% of Allwyn’s revenue still comes from lottery operations, according to executives. The PrizePicks deal marks a shift toward higher-growth, tech-enabled platforms.
The deal comes as the U.S. gaming industry continues to expand in the U.S. following the Supreme Court’s 2018 repeal of PASPA, the federal ban on sports betting. While sports betting has expanded rapidly, iCasino – online casino gaming – remains legal in only a handful of states.
Ramy Ibrahim, a banker at Moelis & Co, which advised PrizePicks, said iCasino could eventually double the size of the regulated online gaming market, citing higher engagement and broader appeal compared to sports betting.
“There’s still a lot of game to play,” Ibrahim said. “California, Texas, Georgia, and New York haven’t gone live with iCasino yet. That’s the next big unlock.”
Unlike traditional sports betting, daily fantasy sports are considered a game of skill, a concept that allows it to operate in more jurisdictions. The CEO said the company is exploring non-sports prediction markets, such as music awards and entertainment events, and is investing in AI tools to help users make more informed picks.
Allwyn International will acquire a 62% stake in PrizePicks. Under the deal PrizePicks’ implied enterprise value could grow to $4.15 billion from $2.5 billion if it reaches certain performance metrics over the next three years.
Allwyn said it expected to finance the purchase using cash and debt.
(Reporting by Jason Hovet; Editing by Bernadette Baum and Stephen Coates)