PrizePicks sells 62.3% stake to Allwyn in $4.15 billion sports betting deal
Daily fantasy sports platform PrizePicks has sold a 62.3% stake to lottery operator Allwyn in a deal worth up to $4.15 billion. The upfront payment of $1.6 billion values the company at $2.5 billion, with potential for an additional $1 billion if financial targets are met over three years. The agreement marks a major milestone for the fast-growing firm, which has seen its market value double since late 2023.
PrizePicks was founded with early backing from poker legend Phil Hellmuth. In 2020, he joined a consortium that invested $850,000 in the company, also serving as an advisor to then-CEO Adam Wexler. Hellmuth later gifted Wexler a Tourbillon watch worth at least $100,000 to celebrate the majority stake sale.
The platform's rapid expansion has been driven by daily fantasy sports growth, new state market entries, and strategic partnerships. On Super Bowl Sunday, its mobile app became the second-most downloaded sports gaming app. PrizePicks has also expanded into yes/no betting contracts through deals with prediction markets Kalshi and Polymarket.
Since Allwyn's initial investment in September 2023, PrizePicks' valuation has climbed from $1.6 billion to around $3.2 billion by early 2026. Revenue from mobile betting and new state regulations has fuelled growth, though some markets remain challenging due to regulatory hurdles. Hellmuth, meanwhile, also profited from a separate 2020 investment in dMY Technology Group, which merged with Rush Street Interactive—his shares sold for $1.65 million in July 2024.
The Allwyn deal secures PrizePicks' position as a major player in U.S. sports betting and fantasy markets. If performance targets are met, the company's valuation could reach $4.15 billion. The transaction reflects broader industry trends, including deregulation, mobile app adoption, and the convergence of fantasy sports with traditional betting.
