Allwyn Reports 27% Q2 Revenue Growth and Majority Take in Next Lotto
Allwyn’s Q2 2026 net revenue climbed to €1.2bn, underpinned by its new majority holding in Germany’s Next Lotto and PrizePicks acquisition, with notable gains in sports betting and igaming segments.
Key Takeaways
- Allwyn Q2 2026 net revenue rose 27% year-on-year to €1.2bn.
- Majority control in Germany’s Next Lotto was secured, increasing Allwyn’s stake to 65%.
- Sports betting and igaming revenues saw double-digit growth across continental Europe.
- Allwyn UK completed a £450m tech overhaul and moved back to positive adjusted EBITDA.
- The group reaffirmed its 2026 growth guidance and announced a €0.20/share dividend.
Allwyn saw a significant 27% year-on-year rise in Q2 2026 net revenue, reaching €1.2bn, following the acquisition of PrizePicks and the move to a majority control in Next Lotto. This regional and vertical expansion helped offset local tax increases in Austria and adverse jackpot cycles.
Q2 Key Performance: Double-Digit Growth in Digital Segments
Net revenue for Q2 2026 landed at €1.2bn (approximately £1.03bn), with consolidated gross gaming revenue (GGR) up 6% to €2.3bn. The underlying growth was fuelled primarily by digital verticals: continental European sports betting climbed 12% year-on-year, while igaming surged by 24%. Conversely, lottery net revenue for the region declined 5% during the period.
In Germany, Allwyn grew its shareholding in the prominent lottery reseller Next Lotto from 42.04% to 65%. This takeover in July grants Allwyn majority control, bolstering its foothold in a key European lottery market.
Allwyn’s UK and North American Operations
In the United Kingdom, where Allwyn operates The National Lottery, Q2 net revenue rose 2% year-on-year to €236m. The division returned to positive adjusted EBITDA after overcoming recent operational challenges. Earlier in 2026, Allwyn UK completed a significant technology transformation project valued at £450m. Leadership changes followed, with former William Hill executive Phil Walker stepping in as interim CEO in place of Andria Vidler.
North American operations reported Q2 revenue of €294m, driven by both the Illinois Lottery and the newly acquired PrizePicks daily fantasy sports business, which delivered a revenue contribution approaching €250m.
Next Lotto Acquisition: Strengthening Allwyn’s Lottery Portfolio
Allwyn’s July acquisition of a 65% stake in German lottery reseller Next Lotto represents a strategic move within continental Europe. Previously holding a 42.04% position, Allwyn’s new status as majority owner expands its influence in the German lottery distribution market. The integration is part of a broader effort to diversify and solidify revenue streams across regulated European jurisdictions.
Strategic Stakes and Digital Expansion in Sports Betting and iGaming
Allwyn holds a 36.75% stake in Betano, the flagship online brand of Kaizen Gaming. For Q2 2026, Betano posted a 26% increase in total revenue, rising to €972m. Adjusted EBITDA also increased by 24%, reaching €257m. Allwyn’s share of Betano’s performance resulted in dividend payments totalling €351m for the quarter.
CEO Robert Chvátal commented on these gains:
"Growth was supported by continued expansion of the digital channel and excellent performance in sports betting and igaming, with sports betting benefiting from the 2026 FIFA World Cup."
Financials, Leverage, and 2026 Outlook
At group level, adjusted EBITDA advanced 29% year-on-year to €458m. The company reaffirmed its full-year 2026 guidance, projecting net revenue growth in the mid-to-high 20% range. Net debt stood at €6.7bn, equal to 3.5 times last twelve months (LTM) adjusted EBITDA.
Allwyn also announced a €0.20 per share dividend, scheduled for payment on 12 November. The group’s cash flow was further boosted by robust digital operations and enhanced profitability in major segments, particularly following the technology overhaul at The National Lottery.
Chvátal summarised the group’s position moving forward:
"Looking ahead, overall trading remains in line with our expectations, and we are pleased to re-affirm our group outlook for 2026. We remain confident in our ability to deliver sustainable growth, strong cash generation and attractive shareholder returns over the long term."
Deal Activity in Lottery and iGaming: Implications for B2B Partners
The acquisition activity and rising digital revenue at Allwyn in Q2 signal a continued shift towards sports betting and igaming, with attention to regulated markets in Europe and North America. Technology upgrades and changes in executive leadership underscore an organisational pivot to resilience and competitiveness following market-specific challenges. Suppliers and partners may find new collaboration opportunities as Allwyn consolidates its positions in lottery, sports, and digital gaming verticals.
For further industry updates, see recent transactions in the lottery and digital gaming sectors.
Frequently Asked Questions
How much did Allwyn’s net revenue grow in Q2 2026?
Allwyn reported a 27% year-on-year increase in Q2 2026 net revenue, reaching €1.2bn, with key contributions from PrizePicks and digital segments.
What percentage of Next Lotto does Allwyn now own?
Allwyn raised its stake in Next Lotto from 42.04% to 65% in July, attaining majority control in the German lottery reseller.
Which segments drove Allwyn’s revenue growth in continental Europe?
Sports betting and igaming drove revenue growth, with year-on-year increases of 12% and 24% respectively, while lottery net revenue declined 5%.
What operational changes occurred in Allwyn UK in 2026?
Allwyn UK completed a £450m technology transformation and returned to positive adjusted EBITDA, with Phil Walker named interim CEO replacing Andria Vidler.
How did Allwyn’s investment in Betano perform in Q2?
Betano’s Q2 2026 revenue climbed 26% to €972m and paid Allwyn €351m in dividends, as adjusted EBITDA grew 24% to €257m.
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About the author
Marcus Webb
Industry Deals Correspondent
Marcus Webb covers the deal flow of the gambling industry — operator strategy, M&A, market entries, and product launches from sportsbook rebrands to full platform migrations. The reports name the companies, valuations, and jurisdictions exactly as disclosed and separate the announcement from its market impact. When a group consolidates a brand or a challenger launches into a new state, Marcus Webb explains who gains, who pays, and what closes next quarter.
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