PrizePicks Valued at $2.5B in Sale to Allwyn as Gaming Traces Blur

Swiss gaming big Allwyn has reached an settlement to purchase a majority stake in PrizePicks in a deal that values the day by day fantasy platform at $2.5 billion.

The transfer comes with the U.S. gaming business in chaos; it’s turn into more durable and more durable to outline what sports activities playing is, or the way it must be regulated.

Prediction market Kalshi is promoting that it “makes legal sports betting possible in all 50 states,” working outdoors of the business’s conventional regulation and tax constructions. Competitor Polymarket is launching quickly in America. Operators that have been conventional fantasy sports activities manufacturers are trying their hand at extra conventional gaming, and likewise planning prediction markets of their very own. Online lotteries are spreading.

The tumult has offered potential new upside for teams like PrizePicks. Founded in 2015, the model has grown into what it claims to be the most important day by day fantasy sports activities operator in North America, providing product in 45 states. PrizePicks has adjusted EBITDA of $339 million within the 12 months ending in June 2025, in keeping with a news release, a 60% bounce from the prior 12 months.  

Allwyn has agreed to buy 62.3% of the corporate for $1.6 billion in money, the 2 sides introduced Monday. Should PrizePicks obtain “certain performance metrics over the next three years,” the announcement stated, Allwyn may owe extra money at an implied enterprise worth of $4.15 billion. Those benchmarks weren’t offered.

The uncertainty in sports activities betting is similar to the rise of day by day fantasy sports activities (DFS) a couple of decade in the past. Once FanDuel and DraftKings, initially DFS-only, pivoted their consideration and their advertising and marketing {dollars} to sports activities betting, it opened the door for a collection of smaller operators to fill the void. Those firms adopted the playbook set by their predecessors, providing DFS contests in lots of states that didn’t have authorized sports activities betting, permitting them to construct market share and buyer bases in populous states like California, Texas and Florida.

Underdog, a PrizePicks competitor and one other a kind of DFS upstarts, lately accomplished a brand new funding spherical that valued the corporate at $1.23 billion. In addition to its core day by day fantasy product, Underdog is now providing sports activities betting in just a few U.S. states and lately partnered with Crypto.com to supply prediction markets in its app.

Both Underdog and PrizePicks have membership pending with the National Futures Association following functions filed earlier this 12 months.

Based in Lucerne, Switzerland, Allwyn’s portfolio spans lottery video games, scratch-offs, iGaming, sports activities betting and retail casinos. Last 12 months it acquired a 70% stake in on-line lottery model Instant Win Gaming, and introduced a deal to purchase a controlling curiosity in gaming operator Novibet. The firm, majority owned by KKCG, was reportedly valued at $13.2 billion (€11.2 billion) in a minority stake sale earlier this month.

This funding, its largest within the U.S., is anticipated to shut within the first half of 2026. PrizePicks will function as a standalone model inside Allwyn—present CEO Mike Ybarra will stay in place, and co-founder Adam Wexler will stay on the corporate board. PrizePicks management will retain “the majority of their existing ownership interest,” the announcement stated.