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Lottery operator Allwyn International AG announced Monday it will buy a $1.6 billion majority stake in PrizePicks, the fast-rising North American daily fantasy sports platform. The deal, steered by Freshfields US LLP for Allwyn and Cooley LLP for PrizePicks, grants Allwyn a 62.3% ownership stake, marking its bold leap into the U.S. sports and entertainment arena.

With PrizePicks valued at an upfront $2.5 billion—and projected to soar to $4.15 billion within three years if performance milestones are met—this acquisition positions the Switzerland-based Allwyn as a heavyweight player beyond lotteries.

Shared Vision, Expanding Horizons

“Allwyn and PrizePicks share a belief in technology, responsible play, and community impact,” Allwyn said in its announcement. “PrizePicks fits seamlessly into our expanding portfolio of casual entertainment as we pursue our vision to become the world’s leading gaming entertainment company.”

Founded in 2015 by Adam Wexler and Jay Deuskar, PrizePicks has built a fan base of millions, transforming fantasy sports into a more casual, accessible, and immersive experience. The app allows users to predict player performance in real time, competing in peer-to-peer contests and tournaments for cash prizes.

“Allwyn’s backing will allow us to scale faster and reach more fans,” said Wexler, who will continue serving as a director on the PrizePicks board.

Revolutionizing Fan Engagement

PrizePicks has been hailed as an industry pioneer, credited with simplifying fantasy sports into a prediction-driven model that resonates with casual fans. “They’ve revolutionized how fans engage with the athletes they love,” said Karel Komarek, Allwyn’s founder and chair.

Despite the acquisition, PrizePicks will continue to operate as a stand-alone brand, led by CEO Mike Ybarra and its current leadership team, who will maintain their ownership stakes.

A Testament to Growth

PrizePicks said the deal showcases the “relentless drive, creativity, and loyalty” of both its team and its players. With double-digit annual revenue growth and millions of monthly users, the company has emerged as one of fantasy sports’ most influential disruptors.

The blockbuster Allwyn to acquire majority stake in PrizePicks deal not only reshapes Allwyn’s portfolio but also signals the growing convergence of lotteries, gaming, and digital sports entertainment worldwide.

Allwyn is represented by Freshfields US LLP.