New Global Lottery Operator Emerges as Allwyn and OPAP Form $18.6 Billion Industry Giant

Key Highlights regarding the strategic merger of the leading lottery operator:

Formation of one of the world’s biggest lottery operators
Potential share listings in London or New York
Allwyn will hold 78.5% of the new company

Lottery giant Allwyn and Greek gaming company OPAP are joining forces through an all-equity merger that values OPAP at a fantastic $18.56 billion. This deal is set to reshape the landscape of the global lottery sector, further solidifying Allwyn’s position as a formidable player.

business merger — Image by rawpixel from Pixabay

This merger significantly expands Allwyn’s current majority stake in OPAP, setting the stage for it to become one of the largest lottery providers worldwide. This growth aligns with Allwyn’s ongoing acquisition strategy, positioning it as a global leader in the lottery segment.

The merger represents a pivotal moment for both companies, combining strengths to create the second-largest listed gaming entertainment entity globally, with diverse, rapidly growing footholds across Europe and the United States. The foundations of this partnership date back to 2013 when KKCG, Allwyn’s controlling shareholder, initially acquired a stake in OPAP.

Before the finalisation of this merger, Allwyn already owned nearly 52% of OPAP. Following the transaction’s completion, Allwyn will control 78.5% of the newly established entity, which will operate under the Allwyn brand, while OPAP’s investors will retain a 21.5% stake.

Potential for Future Share Listings

Though Allwyn remains a privately held entity for now, the newly-formed company will continue to be listed on the Main Market of the Athens Stock Exchange, where it will likely emerge as one of Greece’s largest companies by market value. This may pave the way for a subsequent share listing in more sizable financial markets like London or New York. Allwyn contemplated going public in 2022 but opted against it due to market volatility.

The cancelled SPAC merger valued Allwyn at approximately $9.3 billion, a figure that has evidently increased significantly due to the current acquisition deal. Thanks to past lottery acquisitions, the company is more profitable and larger than it was three years ago.

According to the press release, the Combined Company is projected to be the second-largest listed lottery and gaming operator worldwide, in addition to being the biggest listed lottery entity, well-equipped to leverage vital trends in the industry.

Why Listing in New York Could be Beneficial

Allwyn has a presence in several jurisdictions, including Austria, Cyprus, the Czech Republic, Italy, and Greece. Moreover, it has been operating lotteries in Illinois, one of America’s most populated states, making it somewhat familiar to U.S. investors.

Most notably, last month, Allwyn reinforced its US presence by acquiring a 62.3% interest in the daily fantasy sports (DFS) firm PrizePicks for $1.6 billion. This strategic acquisition is expected to allow PrizePicks to operate in the fast-growing prediction markets regulated by the National Futures Association.

This means that should Allwyn list its shares in the U.S., investors eager for exposure to fast-evolving event contracts may find it appealing.

Interesting Facts about the Merger

The merger solidifies Allwyn’s strategy of seizing market opportunities in the gambling industry.
OPAP’s brand will transition to Allwyn during the first quarter of 2026.
The deal showcases the ongoing consolidation trends among gaming operators worldwide.
Allwyn’s swift expansion reflects positive investor sentiment towards the global lottery market.

In summary, the $18.6 billion merger of Allwyn and OPAP signifies a monumental shift in the global lottery landscape. The formation of a powerhouse that is strategically positioned for future expansion and possible IPOs will be watched closely by industry analysts and stakeholders alike.