Allwyn Seeks New Sportsbook M&A Opportunities After Novibet Deal Collapses

(AsiaGameHub) –   Allwyn International is looking into other acquisition possibilities for a proprietary sports betting technology platform after its Novibet deal fell through.

During Allwyn’s FY25 earnings call on Thursday, CEO Robert Chvátal fielded questions about the breakdown of the company’s proposed Novibet acquisition, which had been announced earlier this month.

Allwyn pulled out of the acquisition after receiving feedback from the Hellenic Competition Commission (HCC), with iGB learning that several potential remedies that were examined could not preserve the deal’s value.

A key element of the transaction was to supply Allwyn with a proprietary sportsbook platform, though Chvátal stated that Allwyn respected the HCC’s concerns.

He indicated that the group had already begun examining alternative options. “This interest in sportsbook technology remains on Allwyn’s radar,” Chvátal commented.

“We have already begun investigating other opportunities regarding sportsbook technology, potentially to strengthen our sportsbook position in certain Allwyn markets.”

Making sportsbook technology internal is a priority for Allwyn

Allwyn CFO Kenneth Morton provided additional details on the company’s broader technology strategy, noting that a major priority was to internalize its sportsbook technology.

According to Morton, the company views proprietary technology as an “important differentiating factor and long-term driver of success.”

“We currently have nearly everything we consider important for user experience and our long-term success already in-house on the lottery side, though it hasn’t necessarily been deployed across our entire portfolio,” Morton stated.

“Sports betting is the one area we don’t currently have in-house, which we believe is strategically important. So we definitely see advantages to bringing it in-house, but as Robert mentioned, there are many other approaches we can take to accomplish that.”

PrizePicks’ advantages in customer acquisition

In September last year, Allwyn agreed to purchase a majority stake in daily fantasy sports (DFS) operator PrizePicks.

The agreement to acquire a 62.3% stake in PrizePicks involved an initial cash payment of $1.6 billion, with further payments contingent on specific performance metrics over the subsequent three years.

PrizePicks has also broadened its offerings beyond existing products by entering the expanding US prediction markets sector.

With Allwyn’s acquisition finalized in January this year, Morton believes PrizePicks is well-positioned to gain traction in the prediction markets sector due to its extensive national user base and recognizable brand.

“PrizePicks doesn’t operate in a situation where it must acquire numerous customers to either tackle churn or expand into new regions to seize the prediction markets opportunity,” Morton explained.

“We can’t provide specifics, but I would say that PrizePicks is definitely better positioned than other companies in the broader North American gaming entertainment space in that respect.”

Morton noted that PrizePicks’ capability to integrate its DFS, sports betting, and prediction markets offerings within a single app was essential from a customer acquisition standpoint.

“Several operators have actually launched with three separate apps for DFS, OSB, and predictions,” Morton continued. “Essentially, to some degree you’re forced to acquire the same customer three times over.

“That’s not true for PrizePicks. From day one they launched predictions within their DFS app, which is clearly better for user experience, but also significantly better from a customer acquisition cost perspective.”

Allwyn’s net revenue saw modest growth in FY25

Allwyn’s net revenue increased by 4% year-over-year in its FY25 results to €4.1 billion, while adjusted EBITDA also grew 4%, approaching €1.6 billion.

Allwyn anticipates finalizing its merger with OPAP this month following shareholder approval in February. The merger is projected to create a combined entity valued at €16 billion.

Chvátal characterized 2025 as a “pivotal year” for Allwyn, voicing his confidence in the company’s prospects.

“The major steps taken this year further reinforce our platform and position us favorably to deliver sustainable long-term value as a publicly traded company,” Chvátal stated.