Lottoland Grabs Up Large Chunk of Jumbo Interactive Shares
Gibraltar – based online lottery provider Lottoland is making waves again down under. According to reports in local media, a trade representing 7.1 percent of Jumbo Interactive issued equity was done by Petra Capital and Lottoland is believed to be the buyer. This is in line with Lottoland’s aim of making a serious impact on the lottery industry in Australia.
Having launched there in January 2016, the local lottery operators are viewing Lottoland’s aggressive expansion plans with concern. Much like Camelot in the UK the traditional monopoly-like lottery companies are realizing that private lottery operators like Lottoland that generated over €300m in revenues last year are a growing threat to their customer base. It had reached a point that National lottery operators in the UK and Australia are looking to legislators to impose restrictions on companies like Lottoland who currently are able to sell cheaper lottery tickets and offer larger prizes but are not obligated to give portion of revenues to charities that regular lotteries are obliged to do so. This according to critics gives them an unfair advantage.
What makes this latest move even more interesting is that Jumbo Interactive make most of their money from online lottery tickets it sells on the website OzLotteries operated under the license from Tatts Group. Jumbo Interactive is the ideal partner for an aggressive company like Lottoland who would be more than happy to gain market share of Jumbo’s 2 million customers.