Allwyn International is actively seeking new acquisition opportunities for a proprietary sports betting technology stack after its deal to acquire Novibet fell through. During the company’s FY25 earnings call on Thursday, CEO Robert Chvátal addressed the collapse of the Novibet acquisition, which had been announced earlier this month.
Allwyn decided to withdraw from the acquisition due to feedback from the Hellenic Competition Commission (HCC). According to sources, several proposed remedies could not preserve the deal's intended value.
The Novibet deal was intended to provide Allwyn with a proprietary sportsbook platform. Chvátal stated that the company respects the HCC's concerns and is already exploring alternative options. "This interest in the sportsbook technology remains on the radar of Allwyn," he remarked. "We have already started exploring other opportunities when it comes to sportsbook technology, to maybe solidify our sportsbook position in some markets of Allwyn."
The integration of sportsbook technology in-house is a top priority for Allwyn. CFO Kenneth Morton elaborated on this broader technology strategy, noting that proprietary technology is considered a crucial factor for long-term success. "We currently have on the lottery side pretty much everything that we think is important for the user experience and important for our long-term success in-house already, although not necessarily rolled out across the whole portfolio," Morton explained. "Sports betting is the one bit that we don’t currently have in-house, which we do think is strategically important. So we certainly see benefits to having it in-house, but as Robert said, there are many other ways that we can achieve that."
In a related strategy, Allwyn last September announced its plan to acquire a majority stake in the daily fantasy sports operator PrizePicks. The transaction involves acquiring a 62.3% stake for an initial cash consideration of $1.6 billion, with further payments depending on specific performance metrics over the next three years. PrizePicks has also expanded its offerings into the US prediction markets. With the acquisition finalized in January, Morton believes PrizePicks is well-positioned to make an impact in the prediction markets sector, benefiting from its large user base and established brand.
"PrizePicks isn’t in a world where it needs to acquire a lot of customers in order to either address churn or to expand into new geographies in order to capture the prediction markets opportunity," Morton stated.
He highlighted that PrizePicks' integration of DFS, sports betting, and prediction markets into a single app enhances customer acquisition potential. "A number of operators have launched actually with three apps, so DFS, OSB and predictions in separate apps," Morton said. "Essentially, to some extent you’re having to acquire the same customer three times. That’s not the case for PrizePicks. On day one they went live with predictions within their DFS app, which is obviously better for the user experience, but it’s also much better from the customer acquisition cost perspective."
Allwyn reported a 4% increase in net revenue year-on-year in its FY25 results, reaching €4.1 billion, while adjusted EBITDA also rose by 4%, nearing €1.6 billion. The company anticipates completing its merger with OPAP this month, following shareholder approval received in February. The merger is set to create a combined entity valued at €16 billion.
Chvátal described 2025 as a pivotal year for Allwyn, expressing optimism about the company's trajectory. "The significant steps taken this year further strengthen our platform and position us well to deliver sustainable long-term value as a listed company," he asserted.
