European lottery operator Allwyn announced it will buy a 62% majority stake in U.S.-based daily fantasy sports company PrizePicks in a deal valuing the firm at $1.6 billion. The acquisition marks a major step in Allwyn’s efforts to move beyond traditional lottery games and tap into the fast-growing U.S. digital gaming market.
The deal, set to close in the first half of 2026, positions PrizePicks as Allwyn’s flagship platform in the U.S. PrizePicks CEO Mike Ybarra said Allwyn’s backing would help accelerate nationwide growth: “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.”
Allwyn, part of Czech billionaire Karel Komarek’s KKCG investment group, has been diversifying aggressively. Beyond running lotteries in the UK, Italy, Austria, Greece, and the Czech Republic, it holds stakes in Kaizen Gaming (Betano brand) and Novibet, and manages the Illinois State Lottery through its U.S. arm. Earlier this year, it also announced a partnership with Formula One.
The PrizePicks acquisition reflects a push into higher-growth digital sectors, even as 90% of Allwyn’s revenues still come from lotteries. The transaction structure includes performance-based milestones that could raise PrizePicks’ enterprise value from $2.5 billion to $4.15 billion over three years.
Industry analysts note the move comes amid rapid U.S. gaming expansion since the 2018 repeal of PASPA, which legalized sports betting. Unlike sports betting, daily fantasy sports (DFS) are classified as a “game of skill,” allowing PrizePicks to operate in more states. The company is also exploring non-sports prediction markets, such as music and entertainment awards, and is investing in AI tools to enhance user decision-making.
Still, regulators have raised concerns about consumer protection as gamified platforms drive higher engagement, especially among younger users. Some U.S. states have imposed fines or opened inquiries into compliance practices. Bankers advising on the deal highlighted that iCasino (online casino gaming), still restricted to a handful of states, could eventually double the size of the regulated market if more states legalize it.
Allwyn plans to finance the PrizePicks stake with cash and debt, signaling its commitment to becoming a more diversified global gaming powerhouse.