Insurance Linked Securities (ILS) agreement ensures Lottoland’s large payouts, giving their customers access to the world’s biggest jackpots.
Online lottery betting leaders Lottoland have announced a new two-year long term agreement for their jackpot insurance (‘Fortuna 2’).
The original deal, which triggered a renewal option after one year due to Lottoland’s strong growth, was titled ‘Fortuna’ and was completed in April 2015, providing Lottoland with a lottery winning risk collateralized reinsurance transaction – the first ILS to be domiciled in Gibraltar.
The new Fortuna 2 transaction, again fully collateralized through Trust Accounts and Letters of Credit, provides more than €100m of annual coverage – including reinstatements – protecting Lottoland against large payouts and giving their players access to the largest lottery jackpots in the world.
Customers at Lottoland can bet on the outcome of the world’s biggest lotteries to win all the same prizes, including the jackpot. There are 29 lotteries available to choose from, including the likes of the EuroMillions, US MegaMillions, US PowerBall, Spain’s El Gordo, and a host of others from across Australia and Europe.
Lottoland’s ILS has already proven its reliability, covering two major winnings. All investors showed their confidence in Lottoland by participating in the new transaction, while some have even increased their investment. This applies also to the Lloyd’s of London cover where several syndicates have also increased their commitment to Lottoland on the strength of the jackpot insurance.
Other operators can also benefit from Lottoland’s proven lottery insurance solution thanks to Lottoland’s B2B arm Lottoland Solutions. Lottoland Solutions guarantees all winnings pay outs with their fully collateralized jackpot insurance and offers a lottery betting interface that is easy to integrate into existing websites.
Lottoland CEO, Nigel Birrell, said, “Securing the ILS for another two years shows the benefit for both parties. Our progressive approach to financial services is really paying off.
“The ILS provides a fully reliable and cost-effective way to reinsure against big wins and we’re delighted to have this agreement in place – the only solution in the industry which has proven fast and reliable pay-out of winnings. It also provides us with the freedom to grow our exciting and innovative product offering – something that can now also be extended to other operators thanks to our B2B business Lottoland Solutions.”
Gibraltar’s Minster for Finance and Gaming, Albert Isola MP, also congratulated Lottoland on the deal, saying “The success of this innovative ILS structure in the Gaming community is confirmed by its renewal for a further 2 year period with the same investors supporting the vehicle once again.
“Lottoland and its investors deserve our congratulations for leading the way in their launch of this second ILS which we welcome.”