Friday , January 22 2021

ROUNDUP: Traffic on the lottery market: Internet provider Tipp24 takes Lotto24 | message

LONDON / HAMBURG (dpa-AFX) – The billion dollar lottery market in the German market also faces legal risk movements. Internet provider lottery Zeal Network (ZEAL Network SE) from London (Tipp24) wants to take on a rival in Hamburg Lotto24. As Zeal announced in London on Monday, companies want to accelerate the growth of online lottery brokerage.

According to him, the combined group of companies will be based on Lotto24 market positions. Zeal wants to create a digital lottery group, which currently has more than 5 million customers worldwide. The German second lottery model Tipp24 should be discontinued.

The background is also an unclear legal situation: Tipp24 belongs to the so-called Zweitlotterien, which does not have a license to buy in Germany, but in another EU country. These suppliers are therefore not regulated in Germany. They work in a legitimate gray area, but are actually allowed.

With this in mind, Zell said that the modified business model would reduce “regulatory risks” in the medium term. Zelsky boss Helmut Becker said the company would “reunite” with Lotto24. Lotto24 was created by dividing today's German Zeal business.

The proposed acquisition will significantly strengthen the German lottery market and increase the flow of funds to federal and non-profit organizations, Salz said. Discussions have already begun with the responsible authority for the supervision of German players about the future license as a commercial gaming agent for the expanded company.

Lotto24 considers itself number 1 in online lotteries in Germany. The company is an authorized ticket broker from clients to state-owned lottery companies and the German TV lottery and receives a commission for this.

The federal states have long tried to reform the control of the gambling market. This is a new state gambling business. The main point in the negotiations is the future of the state lottery monopoly and the regulation of the boom of gambling on the Internet.

The state lottery market in Germany has been declining over the years. Thus, the state passes high tax revenues. Surplus lottery companies, for example, promote programs in sports, in defense of historical sites or in social areas.

Gambling, however, is increasingly migrating to the Internet – in relation to online second lotteries. This can be seen, for example, in the analysis of the Handelsblatt Research Institute for Westlotto, presented in the fall of 2017.

Zeal is planning a stock exchange offer for the business. In particular, the company offers its share in exchange for every 1.6 shares in Lotto24. Lotto24 has announced a review of this proposal. In principle, Zeal sees a strategically significant partner for the further development of Lotto24. Some major shareholders of Lotto24 have already committed themselves to accepting the offer, so Zeal already has obligations on 65 percent of the shares.

The German gambling market is a billion-dollar market. The legal market includes lotteries and sports betting offers at 16 state-owned lottery companies, casinos, gaming machines and pubs, as well as honorary offers for horse bets; The black market includes gambling that does not have a German license, but is licensed from another EU member state – in addition to sports betting on the Internet, online casinos and online poker. / She / hoe / dp / jha

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