JUMBO SECURES STAKE IN GERMAN LOTTERY MARKET
Written on the 12 July 2013
LOTTERY business Jumbo Interactive (ASX: JIN) has scored a lucrative deal in Germany, having been awarded licenses to sell lotteries across the country via web and mobile.
The licenses have been granted to the company’s German subsidiary Jumbo Interactive GmbH and extend across all 16 German states for an initial period of five years.
JIN CEO Mike Veverka (pictured) says the German Internet lottery market is expected to reach AU$2 billion in five years.
“Jumbo’s 13 years’ experience in growing internet lotteries in Australia, together with our industry-leading software platform places us in a good position as the German Internet lottery market opens up,” says Veverka.
“Jumbo now has all the licenses it needs to start selling across the entire country. Our team is working quickly to release the website before the end of 2013.”
The business model will reportedly be similar to Australia with a commission earned on tickets sold. The company plans to invest in marketing to establish a customer database of regular players.
Veverka expects the new venture will take up to three years to become profitable, with funding to be sourced from existing cash reserves.
JIN will sell the EuroJackpot, Lotto 6 from 49, Keno, Plus 5, Super 6, Spiel 77 and GlucksSpirale. The EuroJackpot is the largest game in Germany with a minimum jackpot of €10 million.
The company has opened an office in Munich and has appointed Gerhard Sparrer as country manager and managing director.
Last year JIN announced a long-term exclusive agreement with Sorteo Games to be the official internet and mobile retailer of Mexican lottery games.