Allwyn International has confirmed it is actively pursuing alternative acquisition targets to secure proprietary sportsbook technology, following the collapse of its planned Novibet purchase earlier this month. The lottery and gaming conglomerate withdrew from the deal after the Hellenic Competition Commission raised concerns that could not be resolved without fundamentally undermining the transaction’s value proposition.

Speaking on the company’s FY’25 earnings call on Thursday, CEO Robert Chvátal acknowledged Allwyn’s decision to respect the Greek regulator’s position whilst making clear the strategic imperative remains unchanged. “This interest in the sportsbook technology remains on the radar of Allwyn,” Chvátal told analysts. “We have already started exploring other opportunities when it comes to sportsbook technology, to maybe solidify our sportsbook position in some markets.”

The Technology Gap

CFO Kenneth Morton provided additional context on why bringing sportsbook capabilities in-house has become a boardroom priority. The company sees proprietary technology as a critical competitive differentiator, particularly as it expands its sports betting footprint alongside its dominant lottery operations.

“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.”

The Novibet acquisition was intended to address that gap directly by providing Allwyn with a proven betting platform. But the regulatory roadblock has forced management to reassess their options. Morton stressed there are “many other ways” to achieve the same objective, suggesting potential partnerships, smaller acquisitions, or even internal development could be on the table.

PrizePicks Positioned for Prediction Markets Push

Whilst one M&A door has closed, another recently opened one continues to show promise.

Allwyn completed its acquisition of a 62.3% stake in US daily fantasy sports operator PrizePicks in January, following a deal agreed last September for an initial $1.6 billion in cash, with performance-based earnouts over three years.

Morton highlighted PrizePicks’ recent expansion into the burgeoning US prediction markets vertical as a particularly compelling opportunity. Unlike competitors launching separate applications for DFS, online sports betting, and prediction markets, PrizePicks has integrated everything into a single platform from day one.

“A number of operators have launched actually with three apps,” Morton noted. “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.”

The CFO argued PrizePicks’ established national userbase and brand recognition give it a real advantage over rivals scrambling to build traction in prediction markets. The sector’s seeing explosive growth following regulatory green lights.

Solid Performance Amidst Transformation

Allwyn reported full-year net revenue of €4.1 billion, up 4% year-on-year, with adjusted EBITDA rising by the same percentage to approach €1.6 billion. The results show operational stability even as the company navigates significant strategic moves.

The most transformative of these, Allwyn’s merger with Greek gaming giant OPAP, is expected to complete this month following shareholder approval in February. The combination will create a €16 billion entity with commanding positions across European lottery and betting markets.

Chvátal framed 2025 as a “pivotal year” for the group, expressing confidence that recent strategic decisions have strengthened Allwyn’s platform for long-term value creation as a listed company. With the OPAP merger imminent and sportsbook technology acquisition plans still firmly on the agenda, Allwyn is clearly positioning itself as a vertically integrated force capable of competing across the full spectrum of regulated gambling markets.

The question now is whether management can secure the technology capabilities it needs through opportunistic M&A, or whether building from scratch becomes the pragmatic path forward.

What the team thinks

Baz Hartley says:

Allwyn’s tech shopping spree makes perfect sense from their end, but players should watch how this plays out in the bonus landscape. When big operators acquire proprietary sportsbook platforms, we often see initial promotional generosity as they test the new systems, followed by tighter terms once integration is complete. I’d be keeping a close eye on whichever platform they eventually snap up, particularly how welcome offers and ongoing promotions compare before and six months after the takeover.