Zeal approved to launch lottery brokerage via Tipp24 domains
Zeal Network has taken a step towards completing its acquisition of Lotto24 after the Lower Saxony Ministry of the Interior approved a request to launch lottery brokerage services via its Tipp24 domains.
The Ministry has granted Lotto24 a supplement to its existing brokerage permit covering the Tipp24. This means that players can buy tickets for Germany’s state lotteries via the Tipp24.de and dot.com sites.
This paves the way for Zeal to pivot Tipp24 away from lottery betting and into brokerage, a significant condition of its proposed acquisition of its former Lotto24 subsidiary.
“This is a key building block in our journey to reunite with Lotto24, transform ZEAL's core German business model and accelerate growth in the online lottery market in Germany and beyond,” Zeal chief executive Dr Helmut Becker said. “It is good news for customers, shareholders and the German Federal States and their lottery beneficiaries.
“We look forward to working in partnership with Germany's state lotteries and thank the authorities and the Gambling Council for their supportive and collaborative approach,” he added. “We encourage Lotto24 shareholders to continue tendering their shares and to join us on this exciting journey.”
The acquisition of Lott24, first announced in November 2018, aims to establish a business with more than 5m customers around the world, activities in a number of different international markets and billings of around €500m.
In January 60% of Zeal shareholders voted in favour of the transaction, despite rival lottery betting operator Lottoland stating its opposition to the deal. The offer document for Lotto24 shareholders was then published on January 31, with stakeholders able to exchange 1.604 shares in Lotto24 for one new Zeal share.
This acceptance period runs until April 10, with Zeal noting that it has already received tender commitments for major shareholders including Günther Group, Working Capital and Zeal co-founder Jens Schumann. These shareholders collectively hold 65% of shares and voting rights in Lotto24.