Allwyn buys $1.6-billion stake in fantasy sports operator PrizePicks to expand in US
FILE PHOTO: A fifty pence piece is used to play a National Lottery scratch card in Harpenden, Britain, November 19, 2017. REUTERS/Peter Cziborra/File Photo
PRAGUE :International lottery operator Allwyn International will acquire a 62 per cent stake in American fantasy sports operator PrizePicks for an initial cash consideration of $1.6 billion, helping Allwyn to expand its footprint in the lucrative U.S. gaming market.
Under the deal, which is expected to close in the first half of 2026, PrizePicks' implied enterprise value could grow to $4.15 billion from $2.50 billion if it reaches certain performance metrics over the next three years.
Allwyn is the flagship of Czech billionaire Karel Komarek's KKCG investment group and has expanded quickly in recent years.
Last year, it took over the running of Britain's National Lottery. It also operates lotteries in Italy, Austria, Greece and the Czech Republic as well as interests in the United States. Earlier this year, Allwyn announced a partnership with Formula One.
"This acquisition will continue to drive Allwyn’s momentum and expand our business in the United States," Komarek said in a statement.
PrizePicks, founded a decade ago, counts millions of active monthly users across U.S. markets. It posted adjusted earnings or EBITDA of $339 million in the year to June, with revenue growth of over 60 per cent year-on-year and strong cash flow generation.
Allwyn said it expected to finance the purchase using both cash and debt.
Adam Wexler, PrizePicks’ co-founder, will continue to serve as a board member, Allwyn said.
