International lottery operator Allwyn and Greek gaming company OPAP have reached a merger agreement to create a new entity valued at approximately 16 billion euros (18.6 billion US dollars), becoming the world's second largest listed gaming entertainment company. After the merger, Allwyn will hold 78.5% of the economic interests and OPAP will hold 21.5%. The transaction is expected to be completed in the first half of 2026, subject to approval by the Greek Gaming Commission. The new company will operate under the Allwyn brand, retain its listing status on the Athens Stock Exchange, and plans to be listed on global exchanges such as London or New York. From the first quarter of 2026, OPAP will change its consumer brand to Allwyn and transfer its business to a Greek subsidiary, with the legal address moving to Luxembourg, and the final merged entity will move to Allwyn's headquarters in Switzerland.
Merging Background and Transaction Structure
Allwyn International and the OPAP board have approved the merger agreement, with the new company valued at approximately 16 billion euros. This merger is based on the partnership between the two parties since 2013, with Allwyn currently holding 51.78% of OPAP shares. After the merger, the equity structure will be 78.5% for Allwyn and 21.5% for OPAP.
After the transaction is completed, the new entity will operate under the unified Allwyn brand, integrating resources and market advantages of both sides to enhance global competitiveness.
Timeline and Completion Conditions
The merger is planned to be completed in the first half of 2026, subject to multiple transaction conditions, including regulatory approval from the Greek Gaming Commission. Both parties are currently advancing the approval process to ensure the transaction is compliant.
Starting from the first quarter of 2026, OPAP will begin changing its consumer brand from OPAP to Allwyn, achieving a unified brand transition.
Company Structure and Legal Arrangements
According to the agreement, OPAP will transfer its business to a newly established Greek subsidiary and move its legal domicile to Luxembourg. Allwyn will acquire shares issued by the new company LuxCo in exchange for assets and liabilities.
The final merged company will be headquartered in Switzerland, utilizing Allwyn's existing management infrastructure and strategic location.
Management and Governance Structure
Allwyn's current CEO Robert Chvatal will serve as CEO of the merged company, with Chief Financial Officer Kenneth Morton retaining his position. The current OPAP management team, led by CEO Jan Karas and CFO Pavel Mucha, will continue to be responsible for operations in Greece and Cyprus.
Allwyn's controlling shareholder Karel Komarek will serve as chairman of the board, which will consist of eight members, including six current Allwyn directors and two newly appointed independent directors.
Listing Plans and Capital Strategy
The merged company will continue to trade on the main board of the Athens Stock Exchange, while also planning to list on global exchanges such as London or New York. This strategy aims to enhance company liquidity, broaden the investor base, and open the doors to the equity capital markets for future growth.
Public listing will provide the company with more financing channels, supporting international expansion and business innovation.
Business Integration and Synergistic Effects
The merger will create significant synergistic effects, with an expected compound annual growth rate of EBITDA reaching double digits from 2024 to 2026, higher than OPAP's performance when operating independently. Integration will cover digital technology, proprietary content, and artificial intelligence capabilities, reducing dependence on third parties.
The new company will be able to deploy group-wide expertise, unified brand strategy, and internal technology to accelerate innovation and product time to market.
Market Position and Industry Impact
The merged entity will become the world's second largest listed gaming entertainment company, strengthening its competitive position in the lottery and gaming markets. The business portfolio will cover multiple jurisdictions, utilizing regional advantages to achieve global market diversification.
The company intends to capitalize on key industry trends through digitalization and content innovation to drive growth.
Strategic Planning and Growth Expectations
Allwyn's CEO Chvatal stated that the merger is the "natural next milestone" in the company's development, aiming for faster and further growth. OPAP's CEO Karas emphasized that the merger will create a leading gaming company, deepening existing partnerships.
The company expects to achieve operational efficiency improvements and revenue growth through integration, fully leveraging each market's expertise.
Industry Background and Related Dynamics
This merger is the latest move in Allwyn's growth strategy, following the recent acquisition of a majority stake in daily fantasy sports operator PrizePicks. The company has also established Allwyn Digital, led by the former CEO of Betfred USA, to strengthen digital development.
Following the takeover of the UK National Lottery last year, Allwyn has completed technological upgrades, including software updates for 43,500 retail partners.
Future Outlook and Potential Acquisitions
Following the merger, the company may consider acquiring Betano, with Allwyn already holding 36.75% of its shares as of April 2022, while OPAP holds the majority of the equity. This potential acquisition could be the next step in the post-merger expansion strategy.
The company's goal is to build a world-leading global gaming entertainment company, with this merger driving the realization of this vision.
