Lottery Giant Allwyn Emerges as Leading Suitor to Acquire PrizePicks, Report Says
The European lottery and gaming behemoth Allwyn has emerged as the frontrunner to acquire the daily fantasy sports operator PrizePicks, in a deal that could be valued at around $2 billion, according to a report from the industry newsletter Earnings+More. Citing multiple sources, the report suggests that talks are either in their final stages or have already concluded, positioning the private European company to make a major entry into the U.S. fantasy sports market.
A Strategic Pivot Ahead of a Potential Sale
The rumored acquisition comes just after PrizePicks made a significant strategic pivot in its business model. The company recently announced it would cease all of its popular “against-the-house” pick’em games, shifting its entire operation to a peer-to-peer (P2P) “Arena” format.
According to the company, the decision was not a reaction to external pressures but was driven entirely by user demand and the success of the Arena format. PrizePicks stated it has seen “incredible adoption of Arena in states that we have switched and this decision was made based off the popularity of the game.” This positions the nationwide rollout as a product-led evolution aimed at providing a more social and engaging experience.
While PrizePicks frames the move as a response to user demand, the transition also has the notable effect of placing the company on a more legally defensible footing. The previous “against-the-house” model had drawn scrutiny from state regulators, whereas the P2P format, where users compete against each other, is generally considered more aligned with traditional fantasy sports laws.
Why PrizePicks is an Attractive Target
PrizePicks has positioned itself as a highly desirable asset in the current M&A landscape for several key reasons:
- Market Position: The company is one of the largest and most recognizable brands in the North American daily fantasy sports market.
- High Valuation: While the final price is unknown, a potential $2 billion valuation would make it one of the most significant deals in the DFS space.
- Proactive Regulatory Strategy: In addition to its shift to a P2P model, PrizePicks has been actively securing licenses and bolstering its compliance team, moves that signal a commitment to operating within a regulated framework.
Allwyn’s U.S. Ambitions
For Allwyn, the acquisition would be a transformative move, providing an immediate and significant foothold in the U.S. digital gaming market. The company is a major player in the European lottery and gaming sectors, operating in countries like the Czech Republic, Austria, and Greece. In February 2024, it also took over the operation of the UK’s National Lottery.
An acquisition of PrizePicks would align with Allwyn’s recent history of corporate activity and its clear ambition to expand its digital operations. The potential deal would instantly make it a major force in the U.S. market, leveraging PrizePicks’ established brand and user base to build its presence.
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