Lottoland Establishes Long Term Commitment in Australia with the Acquisition of a 7% Stake in Jumbo Interactive
Gibraltar- based lottery and betting operator, Lottoland Ltd., has recently expanded their presence in the gambling market in Australia. This was done with the acquisition of a minor stake in the Sydney- listed online gambling operator, Jumbo Interactive Ltd.
Last week, in a filing with the Australian Securities Exchange (ASX), Jumbo Interactive confirmed that Lottoland Ltd. had purchased a total of 3,117,224 shares in the company. This translated into a 7.07 per cent stake in the business.
On Friday, shares in Jumbo Interactive Ltd. closed at a price of AUD $2.44 per share. With that in mind, the deal can be estimated to be valued at around AUD $7.6 million. Share prices for Jumbo Interactive saw a spike following the news of the acquisition. Their shares hit a new 52- week high of AUD $2.47 in Sydney when Lottoland Ltd. announced the purchase.
The CEO of Lottoland Ltd., Nigel Birrel, said that the purchase is further proof that the company is committed to the Australian market in the long run.
He said, “This is another example of Lottoland long term commitment to the Australian market, building on the success of our first year we are looking at many opportunities to accelerate our growth.”
Jumbo has been in operation since 1999 and is authorised as an official online lottery reseller for OzLotteries.com. It operates under the supervision of NSW Lotteries, Tatts Group, and SA Lotteries.
The new deal certainly expands Lottoland’s presence in Australia. The company was first granted a gaming license to operate in Australia by the Northern Territory’s Racing Commission in January of 2016. Lottoland was to offer odds on the outcome of lotteries in the country.
The launch of Lottoland’s Australian venture happened to coincided with the Powerball jackpot in the USA. The prize money that year had snowballed to USD $1.6 billion. This event alone helped the company sign up around 250,000 new customers in Australia. All of whom signed upin the space of just 48 hours.
Lottoland Ltd. is a licensed wagering firm that was founded in May 2013. The company is headquartered in the offshore financial centre of Gibraltar.
Lottoland Ltd. is officially licensed by the Gibraltar Betting and Gaming Association and also fully licensed by the UK Gambling Commission (UKGC). According to the conditions of their license agreements, they have to ensure that funds are always available for them to pay out to their winning players. While smaller prize payments are made quickly and directly, larger payments take a bit longer.
The company forms part of a series of independent companies that includes EU Lotto Ltd.
They boast a diverse staff of more than 150 employees, who hail from 30 different countries. The company is also rapidly expanding, with staff numbers increasing by the weeks.
Lottoland is particularly known for its system that involves allowing players to bet on the outcome of a range of international and state lottery draws. They offer their players the chance to bet on the outcome of the world’s biggest lotteries. They are able to place wagers on a range of odds, such as selecting the draw, choosing the numbers and submitting lines. Additionally, they claim that the chances of a win are the same as the official lottery.
This includes bets on lotteries such as the EuroMillions and EuroJackpot. The company also offers odds on lotteries from the USA, such as the supersized MegaMillions and PowerBall draws. They also cover Irish Lotto, Polish Lotto, four lotteries from Australia and many others from Europe and beyond.
The company also offers their players a range of scratch cards. The top prizes for the scratch cards currently stands at GBP £1 million.
While Chris Tarrant, the British ‘Who Wants to be a Millionaire” host has served as the face of the company since 2014, Lottoland has attracted a lot of criticism for the nature of their advertising in recent months.
Jumbo Interactive Ltd.
Jumbo Interactive Ltd. is an Australian corporation that re-sells lottery games in the country. The company, which was founded in 1995, operates under an agreement with the Government Licensed Lottery Operator, Tatts Group Plc.
The company was originally set up as a software developer and an Internet Service Provider in Queensland, Australia. In 1999, the Company listed on the Australian Stock Exchange as Jumbomall.com. At the time they provided e-commerce services to merchants around the globe who wanted to sell products via the internet. Now, Jumbo Interactive is a publicly listed corporation on the Australian Stock Exchange (ASX: JIN).
The company shifted its focus once again towards Internet lotteries when the Interactive Gambling Act was passed by the Australian Parliament in 2001. They started their operation with smaller state- based charity lotteries. In 2005, they acquired TMS Global and shifted to national lottery games.
Jumbo Interactive operates ozlotteries.com, one of Australia’s largest e-commerce websites retailing Australian lotteries, such as Saturday Lotto, Oz Lotto and Powerball.
The business had operated a lottery network since 1984 in agreement with Tattersalls, but once their focus shifted towards the Internet, they developed the Oz Lotteries website. Even today the site is up and running. It is estimated that the website has served more than 1.5 million customers since it was set up.
Jumbo Interactive has agreements with 3 state lotteries in Australia. This includes lotteries in New South Wales, Victoria and South Australia.
In March 2013, Jumbo Interactive announced its expansion into Germany. They signed a license agreement to sell official German lottery games via the web and mobile in the state of Schleswig Holstein. During this period, Jumbo opened its first international office in Munich. By July 2014, Jumbo Interactive GmbH had successfully expanded licensing and sales to all 16 states of Germany.
Jumbo Interactive is a member of Asia Pacific Lottery Association (APLA), World Lottery Association (WLA), and North American Association of State and Provincial Lotteries (NASPL).
The company plays an important role in both the Australian and German lottery industries. They help to raise money for government and social initiatives such as education and health in both countries.