Key Points
- Allwyn reported net revenues of €1.25 billion in Q2 2026, amounting to a 27% YoY increase, while its adjusted EBITDA increased by 29% to €458 million.
- Excluding PrizePicks and Austrian gaming tax effects, organic revenue growth was just 5%, a figure Allwyn disclosed itself.
- UK profitability jumped sharply after the National Lottery technology transformation concluded, even as UK revenue grew only 2%.
Allwyn’s 27% Revenue Jump Masks a 5% Reality Without PrizePicks
There is little room for debate with a growth of 27% in revenues, which shows that things are going well with the company. In the second quarter of 2026, the net revenues of Allwyn reached €1.25 billion against €979 million in the same period last year. The adjusted EBITDA grew 29% to €458 million, while the margin increased from 36.3% to 36.8%. All these are good figures. However, there is another figure included in the same press release, which paints a completely different picture: when adjusting for the acquisition of PrizePicks and taking into account the rise in gaming tax rates in Austria, underlying revenue increased by only 5% year on year, while adjusted EBITDA grew by 9%. Both these figures were published by the company itself, which is important because if a company contradicts itself in headlines, it at least is being honest.
What the PrizePicks Acquisition Actually Changed?
The answer to where the growth came from is straightforward: North America. Allwyn completed its acquisition of a 62.3% stake in PrizePicks on 16 January 2026, paying $1.533 billion in closing consideration. Before that deal closed, North American net revenue was €54 million. In Q2 2026 it was €294 million, with adjusted EBITDA from the segment reaching €104 million. That is not organic momentum; that is what consolidating a business into your accounts looks like. PrizePicks itself, measured on a standalone constant currency basis, grew just 3% year-on-year during the quarter.
CEO Robert Chvátal put the best frame on it. “In North America we continue to rapidly develop PrizePicks’ offering, enabling players to combine PlayerPicks with a TeamPick within a single line-up, integrating prediction markets alongside DFS and helping to deepen engagement and expand the ways in which customers can play,” he said. The product development is genuine: Allwyn confirmed at deal close in January that PrizePicks had already launched regulated prediction markets and added TeamPicks and Culture Picks since the September 2025 announcement. Whether those additions push the standalone growth rate above 3% will be the number worth watching across the next two quarters.
Continental Europe Stable, Lotteries See Decrease
Net revenues in Continental Europe increased by 4% year-over-year to €731 million, and when excluding the rise in Austrian gaming tax, the figure amounts to a 6% gain. Allwyn noted that the second quarter marked the final period where Austrian gaming taxes will affect the year-over-year comparison. Lottery revenue across continental Europe fell 5% to €262 million, which the company attributed to strong jackpot cycles in the prior-year period rather than any structural shift in player behaviour. Jackpot variance moves lottery revenue in both directions and the explanation is credible. Sportsbook net profit increased 12% overall, with the FIFA World Cup tournament being mentioned as one of the key drivers of growth. Net gaming revenues increased 24%. Betano, run by Kaizen Gaming, where Allwyn owns a minority stake, posted an increase in total net sales by 26%, although the company’s portion of the net profit from Betano declined 3% to €61 million.
The UK Story: Small Revenue, Meaningful Profit Progress
UK net revenue grew 2% to €236 million. On the surface, that is underwhelming for a business that took over the National Lottery with promises of modernisation and growth. But the profit line tells a different story. UK adjusted EBITDA jumped from €6 million to €23 million, a significant step driven by the completion of the National Lottery’s long-running technology transformation. Chvátal pointed to product launches as evidence of forward momentum: “These included new or enhanced draw-based lottery games in Austria, the Czech Republic and the United Kingdom, where we are proud to be the first operator outside the US to offer Powerball, one of the world’s largest jackpot games.” Lottery revenue in the UK grew 2%, in contrast to the decline seen across continental Europe. Modest as 2% growth is, it at least points in the right direction for a business that has just completed a costly infrastructure overhaul.
A Leadership Change That Lands at the Wrong Moment
Ten days before the Q2 results were released, Allwyn UK confirmed on 19 August 2026 that the CEO Andria Vidler would be leaving on 7 September, with the interim replacement being the ex-WH managing director and online MD, Phil Walker. Vidler was the CEO of Allwyn UK from October 2023 and had managed the transfer of the National Lottery licence along with the technology program that followed. The Chairman of Allwyn UK, Justin King commented that it was the perfect time for the move: “With all the major transition milestones accomplished, it is the perfect time to look forward and build on the strong foundation we have established so far.” This is how Vidler put it as well. Walker’s profile is more commercial than operational and the search for the permanent CEO position is currently underway.
Next Steps?
Allwyn maintained its guidance for fiscal year 2026 of net revenue growth of mid to high 20% prior to €60 million of special items and an adjusted EBITDA margin of about 37%. Post second quarter end, Allwyn entered into an agreement to increase its ownership percentage in Next Lotto, a reseller of German state lotteries in the online space, from a minority to a controlling 64.53% stake. Chvátal closed the quarter on a consistent note: “We remain confident in our ability to deliver sustainable growth, strong cash generation and attractive shareholder returns over the long term.”
Expert Analysis
“27%” headline plays into the story that Allwyn wants to spin. A company that is preparing itself for an eventual London or even New York stock market listing after successfully completing a major merger with OPAP should have numbers that look impressive. The real question here, we believe, is how things will play out once the 1-year anniversary of PrizePicks consolidation comes around, and 27% becomes the benchmark instead of the shocker. In this case, a 5% organic growth rate is not enough to back up the story about mid-20s growth unless there is some sort of acceleration in PrizePicks growth or another acquisition happens. This 3% growth in stand-alone terms is not a disaster, but rather a warning sign. A $1.533 billion purchase needs to grow faster than 3% in stand-alone terms in order to justify the price paid for it, especially considering performance-based earn-outs that could boost the enterprise value up to $4.15 billion.
The UK CEO transition deserves more attention than it has received. Vidler delivered what Allwyn UK promised: the National Lottery technology transformation is done, and the margin benefit is now visible. Replacing her with an interim at the precise moment the UK business must shift from delivery to revenue growth is a structural gap. Allwyn UK contributes modest revenue and is recovering profit, but it carries the licence that defines the group’s public profile in its most scrutinised market. A business still hunting for a permanent leader is not best placed to accelerate. That is not a criticism of Walker, whose experience is genuine; it is a question of timing, and the timing is awkward.
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