Multi-national lottery leader to enter United States sports and entertainment industry by purchasing approx. 62.3% of the nation’s largest daily fantasy sports platform. The transaction implies an upfront enterprise value of USD 2.5 billion for PrizePicks. Allwyn and PrizePicks will combine strengths to accelerate innovation and fan engagement
Allwyn International AG, the lottery-led gaming entertainment company, and PrizePicks, the largest daily fantasy sports operator in North America, today announced that they have entered into a definitive agreement for Allwyn to acquire a majority stake in PrizePicks. Allwyn has agreed to purchase an approximately 62.3% stake in PrizePicks for an expected initial cash consideration of USD 1.6 billion, implying an upfront enterprise value of USD 2.5 billion. If PrizePicks achieves certain performance metrics over the next three years, additional cash consideration under the agreement could raise the implied enterprise value to a maximum of USD 4.15 billion.
Since it was founded in 2015, PrizePicks has become the leader in DFS through industry-leading product innovation and a deep commitment to its player community. PrizePicks has offered fans new ways to engage with their favourite sports – including free-to-play games and a peer-to-peer tournament-style offering, which enables fans to test their skills against other players. It has attracted a passionate fanbase of millions of monthly active users across more than 45 United States jurisdictions and has become one of the fastest-growing DFS operators in the country. The company has consistently delivered high double-digit annual revenue growth and strong profitability.
For Allwyn, the transaction is a unique opportunity to enter the strategically important sports and entertainment industry in the United States, expanding its business in the country beyond its existing operation of the Illinois Lottery. With a shared belief in the power of technology and commitment to responsible play and community impact, PrizePicks is highly complementary to Allwyn’s expanding portfolio in casual entertainment – in line with its vision to become the world’s leading gaming entertainment company.
With Allwyn’s scale and resources, PrizePicks will have the support to expand and innovate faster, reaching more fans than ever before.
PrizePicks will operate as a standalone brand within Allwyn, led by its CEO Mike Ybarra and the existing leadership team who will be retaining the majority of their existing ownership interest. The company’s executive team brings deep expertise from the video game and entertainment industries, with a proven track record of building products that resonate with player communities. Adam Wexler, PrizePicks’ co-founder, will continue to serve as a member of the PrizePicks Board of Directors.
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