Zeal enters UK prize draw market through SevenCanyon acquisition

German lottery brokerage Zeal Network SE has announced its acquisition of a 96.5% stake in UK prize draw operator SevenCanyon Limited. 

The move marks Zeal’s entry into the UK, which it describes as Europe’s largest for digital prize draw products. SevenCanyon operates a portfolio of established UK digital prize draw websites such as 7days Performance, Redline Competitions and UK Carp Competitions. 

As of the announcement on Thursday, Zeal already held a 3.5% equity interest in SevenCanyon. The acquisition price for the outstanding shares is approximately £33.8 million, subject to post-completion adjustments.

Additionally, an earn-out payment of up to £4.8 million is payable within six months post-completion.

Funding for the transaction was secured through a €40 million, seven-year term loan arranged by Deutsche Bank. 

Zeal has been hinting at plans to expand into new markets via the prize draw vertical , since its FY25 earnings call in March. Zeal CEO Dr Stefan Tweraser said at the time that Zeal had a “strong war chest” for investment opportunities. 

Interest in prize draws has been a staple of the Zeal brand for some time. Previous CEO Helmut Becker, emphasised the vertical’s attraction to younger players, in an interview with iGB last year.

“I do think generally speaking there’s an opportunity for more innovation in our industry,” he noted at the time. “There are ways to address the needs of those target groups and that’s through product innovation.” 

‘Preserving Zeal’s flexibility for further capital allocation’

Zeal executives characterised this latest acquisition as a strategic step toward both geographic and product diversification.

Tweraser commented: “SevenCanyon is one of the most successful prize draw operators in the UK – we have known them for years. With the acquisition, we hit the ground running in a highly attractive and growing market.”

CFO Andrea Behrendt highlighted SevenCanyon’s profitability, noting: “The business is highly profitable, and the purchase will mainly be financed through a new loan agreement, preserving Zeal’s flexibility for further capital allocation.”

Financials and the UK prize draw market

Zeal said the acquisition would be EBITDA-accretive, with SevenCanyon expected to contribute meaningfully to the group’s revenue and EBITDA post-consolidation.

The company reaffirmed its EBITDA guidance of between €70 million and €75 million for 2026, assuming a normal jackpot environment in Germany.

Revenue for Zeal for FY’25 was 2% higher than the €205 million to €215 million which was forecast in September. EBITDA hit €68.8 million, reaching the top end of the previously forecasted €63 million to €68 million. 

The company expressed confidence that the UK prize draw market would increasingly formalise regulatory frameworks, benefiting operators with established compliance expertise.

Currently the vertical is governed by a voluntary code put in place by the Department of Culture, Media and Sport (DCMS) in May.

“One of the key advantages in the UK is that prize draws are not currently subject to Remote Gaming Duty,” Jamie Pinner, a senior leader at DrawHouse, recently told iGB.

“That makes them a far more efficient revenue stream than sportsbook or casino products, at least for the time being.”  

A trade body to represent the prize draw industry was established in the UK last week.The Prize Competition Council (PCC) has sought to bring together operators to promote responsible standards, enhance player protections and encourage long-term development. 

Britain’s prize draw competition (PDC) market has generated an estimated £1.3 billion in annual revenue and attracts around 7.4 million active players, according to an April report by consultancy Rokker.