Atlanta-based PrizePicks sells majority stake for $1.6B to lottery operator
Fantasy sports giant PrizePicks announced Monday it agreed to sell a majority stake for $1.6 billion to a Swiss lottery operator.
PrizePicks, which is undergoing expansion to its Atlanta headquarters, agreed to sell a more than 60% stake to Allwyn International AG, according to a news release. The companies say the deal will provide PrizePicks the resources to continue its meteoric growth while expanding Allwyn’s U.S. footprint.
PrizePicks CEO Mike Ybarra and other existing C-suite members will remain in place as part of the transaction, which was first reported by The Wall Street Journal. The controlling interest sale will also not slow the company’s growth commitments to Atlanta, which include expanding its workforce here by 1,000 employees by 2031, a spokesperson told The Atlanta Journal-Constitution.
“By joining forces with Allwyn, a like-minded and disruptive company that shares our passion for bold product innovation, we will accelerate our mission to make our games more interactive, engaging and rewarding for fans everywhere,” Ybarra said in the release.
A successful startup that sprang out of Atlanta Tech Village, PrizePicks created one of the most downloaded free sports apps and is a major player in the daily fantasy sports market. While sports betting and gambling is illegal in Georgia, daily fantasy sites like PrizePicks say they are considered games of skill — not chance — and are permitted under Peach State law.
PrizePicks in December held a ribbon-cutting for its newly relocated and expanded headquarters within the Star Metals high-rise in West Midtown. Gov. Brian Kemp, who has previously opposed legalizing sports betting, spoke at the PrizePicks’ ceremony, saying the company’s rise reflects two fast-growing Georgia industries: technology and sports.
Lucerne, Switzerland-based Allwyn operates lotteries across Europe and North America, but its sole U.S. market is the Illinois Lottery. Karel Komarek, Allwyn founder and chair, said the PrizePicks stake acquisition is his company’s largest U.S. investment to date.
“PrizePicks has established its credentials as an industry pioneer, revolutionizing the way fans engage with the athletes they love, making the contests more thrilling and immersive,” Komarek said in the release. “We are excited to work with PrizePicks to shape the future of this new frontier in casual entertainment.”
The sale effectively values PrizePicks at $2.5 billion, but that evaluation could increase further. Allwyn said if PrizePicks meets certain undisclosed performance metrics over the next three years, additional cash considerations could increase PrizePicks’ value to nearly $4.2 billion.
PrizePicks has emerged as one of the most-downloaded daily fantasy sports apps since its founding in 2015. Its platform, which will remain a standalone brand within Allwyn, is currently available in 45 states.
Stepan Dlouhy, chief investment officer of Allwyn, said the company has been aggressively working to expand into the U.S. It acquired the operator of the Illinois lottery in 2023 and subsequently acquired a majority stake in co-working office space operator IWG last year.
“The United States gaming and entertainment market has always been a compelling opportunity, and our focus has been on finding the right entry points,” Dlouhy said in the release. “PrizePicks fits perfectly into our vision of shaping the future of mass market casual digital entertainment and is poised for further strong growth.”
Adam Wexler, PrizePicks’ co-founder and a Sandy Springs native, will continue to serve as a member of the PrizePicks board of directors. He said that with Allwyn’s backing that PrizePicks will “accelerate our vision and bring our games to even more players on a much bigger stage.”
In the release, PrizePicks said it reported $339 million in adjusted earnings before interest, taxes, depreciation and amortization in the 12 months ended in June, with revenue growth in that period of 60%.
The transaction is anticipated to close in the first half of 2026, and Allwyn will finance the purchase with cash and debt.
About the Author
Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives.
