Start-up entrepreneur and seed investor acquires stake in Lottoland
Elicia Bravo Garcia joins as Chief Strategy Officer from Linklaters
Annual sales of €250 million (run rate)
Lotto is a $300 billion (USD) market
Lottoland, one of the leading private online lottery operators in Europe, has strengthened its shareholder base and management team. Felix Haas, business angel, seed investor and founder of TiberiumSun, amiando and IDnow, joins the company’s board. While Elicia Bravo Garcia – formerly of international law firm Linklaters – has taken over as Chief Strategy Officer of the Gibraltar-based company.
“We are delighted that two such renowned experts have joined Lottoland. The appointments underline our claim to be the world’s largest private provider of lottery and instant win games. We’re sure that Felix Haas’ experience and network with investors will help us continue to grow Lottoland,” said Nigel Birrell, CEO of Lottoland. “In Elicia Bravo Garcia, we now have a recognised expert in financing and M&A matters on board. This allows us to continue with our international growth plans. Meaning we now have the legal support that Lottoland needs in order to deal with regulatory issues and compliance measures.”
“Lotto is one of the last state-owned monopoly markets in Germany. This has resulted in an antiquated offering, declining player numbers and inadequate protection of players. It is high time that this market is open to competition. Lottoland has the potential to end this outdated monopoly. Through systematic digitization and constant innovation, Lottoland can return excitement to German player’s, offer a better product and enhance people’s lives,” said Felix Haas.
€250 million Turnover
Lottoland was founded in 2013 and has seen more than three million people use its products. The company now has a presence in 12 markets across four continents, with an annual turnover of €250 million (run rate). Lottoland operates in sustainable profitability.
The concept of Lottoland originated in Germany. However, due to a difficult regulatory situation in the country, Lottoland instead opted to settle on Gibraltar as its business location. The start-up currently has over 250 employees.
Players at Lottoland can take part in 28 lottery games from 14 different countries, including some of the biggest and best-known lottery games such as Lotto 6aus49, US PowerBall, EuroMillions and the Spanish El Gordo. As well as its lottery offering, digital scratchcards are also available to players. In the B2B side of its business, Lottoland markets its expertise in technology and risk management to private gambling companies.
Lotto: the $300 billion market
Every year, more than $300 billion (USD) is spent on lottery games worldwide. So far only a small percentage of this market takes place online – but this trend is growing rapidly. Lottoland is at the forefront of one of the fastest growing service industries in Europe, albeit one that remains highly regulated.
In Germany, there are 16 independent national lottery companies, organisers and suppliers of gambling. These companies have come together in German Lottery and Pools to regulate the market, such as the Wednesday and Saturday Lotto. Unlike slot machines, lotto is therefore still under a state monopoly.
All features of German gambling regulation is decided by a single panel, with all states having one representative. This is contrary to a ruling by the EU law according to the European Court.
“Lotto poses no risk of addiction. Therefore, a state monopoly is not required. A strictly controlled deregulation of the market would not only ensure more competition, but also provide more attractive products and better protection for players. However, the monopolistic incumbents fear only for their revenues: essentially avoiding competition at all costs. In reality though, this does neither the current owners nor the consumers a favour,” said Nigel Birrell.
About Felix Haas
Felix Haas is the founder of Amiando, IDnow and TiberiumSun – websites for computer games and entertainment news that see more than 285 million page views per month. As a business angel and seed investor, he is involved in more than 50 European and US start-ups. With Bits & Pretzels, he organises Germany’s biggest festival for founders.
About Elicia Bravo Garcia
Elicia Bravo Garcia has spent the past seven years working at leading international law firm, Linklaters LLP. While there, she was responsible for debt and equity transactions for emerging markets at the company’s headquarters in London, before working with the international finance group in Madrid. She is a qualified UK and NY lawyer and completed her MBA at INSEAD in 2016.
Lottoland is one of the leading private lottery providers in Europe, with gambling licences in Gibraltar, Great Britain, Australia and Ireland. With Lottoland, customers can play the world’s best lotteries, such as Germany’s Lotto 6aus49, EuroJackpot, EuroMillions, the Spanish Christmas lottery El Gordo, and America’s MegaMillions and PowerBall. As well as this, Lottoland also offers its own lottery products and instant lotteries. Lottoland itself is not a lottery organiser, but instead a bookmaker taking bets on the results of lotteries. The payment of all prizes is guaranteed by an insurance model.
Lottoland has set itself the goal of revolutionising lottery in the future though creating their own products, attracting younger audiences and modernising the lottery market. Lottoland advocates a strictly regulated and controlled opening of lottery markets. To learn more about Lottoland, visit: lottoland.com and corporate.lottoland.com.