How PrizePicks and a Digital Wave Are Changing Allwyn From the Inside Out

Key Points

• Allwyn achieved net gaming revenue of €1.12bn in Q1 2026 together with gross total revenue of €2.39bn and consolidated net revenue of €1.204bn with contributions from digital revenue and the PrizePicks transaction.
• Online net gaming revenue increased by 68% to €540m while lottery revenue fell by 5% to €487m.
• The adjusted EBITDA increased by 24% to €443m, and there were no changes to its annual guidance, and also there was an announced €150m stock buyback plan.

Lottery revenue used to be the most reliable part of Allwyn’s story. That is no longer the case. The Q1 2026 results show a company in the middle of real change, where digital gaming products are rushing to the front of the queue. Traditional lottery operations are not keeping pace. New acquisitions, growing online activity, and better player engagement have pushed digital channels close to taking the top spot in total net gaming revenue.

Online Revenue Races Ahead While Lottery Numbers Step Back

Online net gaming revenue climbed 68% to €540 million, taking a 48% share of total NGR and bringing digital almost level with the lottery as the group’s biggest contributor. Lottery NGR, on the other hand, fell 5% to €487 million.

• Daily Fantasy Sports (DFS): Generated €178 million in net revenue for the first time, entirely due to PrizePicks joining the group.
• iGaming: Put up the best organic performance, with net revenue up 29% to €147 million.
• Sports Betting: Increased 13% to €159 million.
• VLT and Casino: Rose 11% to €146 million.

Chief Executive Officer Robert Chvátal credited investment in innovation, a better player experience, and the work of bringing PrizePicks into the group.

North America Wakes Up as PrizePicks Joins the Family

The region that grew the most was North America. Net revenue there reached €239 million, up from €60 million in the same period last year, while adjusted EBITDA in the region rose to €75 million compared with €12 million in Q1 2025.

[PrizePicks] drove most of this, supported by strong player numbers and the operator’s return to New York under a proper licence. Total North American revenue hit €305 million, more than four times what it was a year ago. Khalid Reede Jones, the former head of the Virginia Lottery, took over to lead Allwyn’s North American operations.

Continental Europe still leads the pack in revenue earnings. Austria, the Czech Republic, Greece, Cyprus, Italy and Germany combined took in a healthy €754 million in net revenue a solid 5% gain on last year’s numbers.

Austria & the Czech Republic both did well last quarter, thanks to a surge in iGaming. Greece & Cyprus, on the other hand, only managed a 2% boost, largely because the previous period had included some record-breaking jackpots in the Tzoker lottery. Putting that all together, the combined Continental European revenue clocked in at €1.2 billion, up a respectable 7%.

The adjusted Ebitda in the region was pretty steady at €325 million, with a slight 3% uplift all the more impressive given the 1.7 percentage point hit taken from higher gaming taxes in Austria & those early losses Slovakia is still sorting out.

The UK Finally Finishes Its Long Technology Journey

UK net revenue rose 3% to €224 million, even as gaming activity and gross gaming revenue came down. A record EuroMillions jackpot boosted last year’s figures, making the comparison harder, and the business was also completing a major platform migration during this quarter.

Around 18 million player accounts were moved to a new digital platform during Q1. Net capital expenditure came down to €52 million from €58 million as a result. Total UK revenue fell 7% to €942 million. Tax payments and contributions to good causes totalled €718 million during the quarter. The platform transition weighed on UK EBITDA margins for now.

Allwyn drew attention to Betano, the sports betting and gaming brand run by Kaizen Gaming, in which Allwyn holds a 36.75% stake following the €16 billion OPAP-linked merger. Betano posted total revenue of €788 million in Q1, up 27% year-on-year. Income from the stake grew 43% to €60 million in net income. Betano covers Europe and Latin America and keeps growing as one of the most valuable parts of Allwyn’s portfolio outside the core lottery business.

Profits Stay Strong Even as Spending Increases

Adjusted EBITDA grew 24% to €443 million and the adjusted EBITDA margin improved to 36.8% from 36.1% a year ago. Stripping out PrizePicks, organic EBITDA growth came in at 11%. Operating EBITDA rose 11% to €336 million. After depreciation and amortisation, operating profit reached €379 million, which is 25% ahead of last year. Pre-tax profit grew 15% to €285 million.

Tax payments of €72 million left adjusted profit after tax at €213 million, an 18% rise. After removing non-controlling interests of €44 million, the share of profit for shareholders was €169 million, up 6%. Free cash flow, measured as adjusted EBITDA minus CAPEX, rose 30% to €391 million from €300 million a year before.

Guidance Stays Firm and the Buyback Gives Shareholders Something to Hold On To

Q1 2026 just wrapped up and it marked the first quarter that we got to see Allwyn AG in all its glory after that big corporate integration last time around. Despite all the changes, the management team chose to stick to the full-year 2026 targets they set hoping for a 20% net revenue increase and an adjusted EBITDA margin of about 37%.

Net debt and lease liabilities just about doubled to 5.35bn euros from 3.15bn euros. They’ve announced a new share buyback programme that’s capped at 150 million euros all part of a minimum dividend pledge of at least 1 euro per share.

Robert Chvátal had some words to say about the quarter, straight from the horse’s mouth:

“To be honest I’m still on cloud 9 about this quarter – we’ve taken two great businesses & bashed them together to make a real player in the gaming world, with a lot more opportunities to grow and a platform that’s pretty much unique – and it’s all set to benefit our shareholders and help create some long term value”

He followed up with:

“Meanwhile, we have remained firmly focused on execution. The progress of our enlarged group this quarter demonstrates the breadth and strength of the Allwyn platform, with strong momentum in profitability and growth in continental Europe, the addition of PrizePicks in North America, the completion of the UK technology transformation, a strong contribution from Betano, and continued development of our digital and content capabilities.”

On growth, he said:

“Growth was driven by the digital channel, supported by our focus on innovation and enhancements to our proposition and player experience, as well as the acquisition of PrizePicks. Allwyn’s platform comprises leading lottery-led businesses across continental Europe, North America and the United Kingdom, together with market-leading growth assets, combining the resilience and cash generation of lottery-led operations with growth from digital channels, proprietary content, technology, online sports betting, iGaming and North American entertainment.”

He also added:

“We remain focused on leveraging this platform to deliver compounding growth, cash generation and long-term shareholder value, while maintaining disciplined capital allocation, responsible gaming standards and strong partnerships with regulators, governments and communities.”

Allwyn said events in the Middle East and Iran, trade tariffs, and broader macroeconomic conditions did not have a material effect on Q1 results.

Expert Review: What Comes After This Quarter?

Some key things to keep an eye on in the quarters ahead are whether online revenue finally overtakes lottery revenue for the first time, just how big a difference PrizePicks makes to their long-term profit, how fast they can grow in North America, and whether they can keep hold of that EBITDA margin through the integration phase. We’ll also be looking at Betano’s growth path, just how fast Europe’s taking to online, and how the new UK platform pans out in practice.