(Corrects name to Ramy Ibrahim, not Ibrahim Ajami, in paragraphs 13-14)

By Sabrina Valle and Jason Hovet

Allwyn Acquires Majority Stake in PrizePicks for $1.6 Billion

NEW YORK/PRAGUE (Reuters) -European lottery giant Allwyn officially announced on Monday its intentions to acquire a majority stake in PrizePicks, a prominent U.S. daily fantasy sports operator, in a deal that values the Atlanta-based company at a substantial $1.6 billion.

Strategic Expansion into the U.S. Gaming Market

This acquisition represents a major strategic step for Allwyn as it seeks to diversify its operations beyond traditional lottery businesses and enhance its footprint within the rapidly evolving U.S. gaming sector. The transaction is expected to finalize in the first half of 2026, marking Allwyn’s entry into the lucrative daily fantasy sports arena.

PrizePicks: A Platform for Growth

PrizePicks CEO Mike Ybarra shared insights on how this strategic partnership with Allwyn will bolster the company’s expansion plans across the United States. He emphasized, “We are currently operational in 45 states and I anticipate that we will achieve coverage in all 50 states, resulting in a broader acceptance and regulation of our services in the United States.”

Allwyn’s Expanding Portfolio

Allwyn is backed by Czech billionaire Karel Komarek’s KKCG investment group and has seen rapid growth and diversification in recent years, particularly into online gaming. Notably, Allwyn took over the management of the UK’s National Lottery last year and operates various lotteries in countries including Italy, Austria, Greece, and its home country, the Czech Republic. Earlier this year, it also announced a collaboration with Formula One.

Investment in Online Gaming

In addition to its new stake in PrizePicks, Allwyn holds a 36.75% stake in Kaizen Gaming, the parent company of the Betano brand, and reached a definitive agreement to acquire a 51% stake in the Greek online betting firm Novibet by December 2024. In North America, Allwyn is managing the Illinois State Lottery through its subsidiary, Allwyn North America.

Concerns Over Problem Gambling

Amid the flourishing U.S. gaming landscape, where online platforms are significantly shaping gambling behavior, a Reuters investigation highlighted the troubling surge in problem gambling cases, particularly among younger demographics. Some states have begun inquiries or levied fines against operators regarding compliance and consumer protection issues.

A Shift in Revenue Generation

Despite the news, it remains that approximately 90% of Allwyn’s revenue still stems from traditional lottery sources. However, the PrizePicks transaction marks a strategic pivot towards high-growth, tech-savvy platforms in the gaming industry.

The Future of U.S. Gaming

This announcement arrives at a time of rapid expansion in the U.S. gaming sector, following the Supreme Court’s 2018 decision to repeal PASPA, effectively lifting the federal prohibition on sports betting. While sports betting has rapidly proliferated, online casino gaming (iCasino) remains legal in only a few states.

Market Expansion Insights

Ramy Ibrahim, a banker at Moelis & Co., who advised PrizePicks, suggested that the iCasino segment could potentially double the size of the regulated online gaming marketplace, given its prospects for higher engagement and broader appeal compared to traditional sports betting.