It has been a whirlwind 24 hours for fantasy sports specialist PrizePicks, which confirmed it is taking a first step into the contentious world of event contracts in the face of a $1.5 billion buyout by lottery giant Allwyn.
On a landmark day, PrizePicks announced it was partnering with Polymarket, the cryptocurrency-based prediction platform which has just received clearance to re-enter the US trading arena from the Commodity Futures Trading Commission (CFTC).
The collaboration will see PrizePicks integrate Polymarket’s events contracts into its app, giving users access to prediction markets stretching across sport, entertainment and other real-world events such as the US presidential election.
Allwyn Secures $1.5bn Funding For PrizePicks Deal
With the Polymarket news barely digested, Allwyn International revealed it had completed successful syndication of acquisition financing for PrizePicks.
The multi-national lottery and gaming operator views PrizePicks as a prime asset as it pursues a strategy to expand its interests across the US.
In September, Allwyn announced it was to pay around $1.6 billion for a 62.3% majority stake in the fantasy sports operator, and the necessary funding is now in place.
It is a major play by Allwyn which runs national lotteries across the UK, Austria, Greece and Cyprus, its home market in the Czech Republic and the Illinois Lottery in the US.
It has also secured several global partnerships to increase brand awareness, particularly in Formula 1 where it is official partner of 2025 Constructors’ Champions McLaren.
Kenneth Morton, Allwyn’s Chief Financial officer, said: “I am very pleased to have successfully syndicated our largest offering to date in the USD institutional term loan B market, demonstrating continued investor support for the Allwyn credit and confidence in our outlook.
“We are looking forward to the closing of the planned PrizePicks acquisition, an exciting step in our growth strategy and expansion of our footprint in the US market.”
Controversy Over Sport Events Contracts
Events contracts have been around for a few years, with Polymarket opening for digital business in 2020 and great rival Kalshi launching in 2021.
It wasn’t until last year’s US presidential election that interest from the public exploded though, and when Kalshi began offering regular sports contracts in January with the federal approval of the CFTC, the gambling industry suddenly felt under threat.
From that moment it was difficult to envisage what would happen next to prediction markets in the US.
A whole raft of court actions have followed, with state regulators claiming that offering events contracts around sport is gambling by another name and should be subject to state regulation and tax levies.
Not only has Kalshi walked through most challenges so far without a legal scratch and earned an honourable mention on South Park along the way, the CFTC has also approved Polymarket’s return to trade in the US.
While sports betting companies were generally reluctant to associate themselves with events contract trading, the last couple of months has seen a big change in attitude.
In August, Flutter announced that CME Group and FanDuel had partnered to develop an innovative event contracts platform.
A few weeks later DraftKings acquired Railbird, a federally licensed exchange, and in last week’s Q3 2025 earnings call, CEO and co-founder Jason Robins confirmed the upcoming launch of sports prediction markets by the leading sportsbook.
PrizePicks Enters The Predictions Market
Mike Ybarra, CEO of PrizePicks, hailed his firm’s groundbreaking partnership with Polymarket.
“As the No 1 daily fantasy sports operator in the US, PrizePicks is thrilled to partner with Polymarket, a trailblazer in the prediction space, to open up new experiences for our millions of existing members and introduce our platform to millions of new customers,” he said.
“By entering the US predictions market, PrizePicks will create greater competition, drive innovation and deliver even more value directly to members.
“Together with Polymarket, we’ll continue to focus on product, innovation, and exceeding our customers’ expectations.”
Shayne Coplan, founder and CEO of Polymarket, said: “PrizePicks has built one of the nation’s most exciting sports communities, and we are excited to help bring prediction markets into that world.
“As we prepare to return to the US, this partnership shows how prediction markets can enhance fandom while setting a new standard for interactive, regulated sports engagement.”
