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LOTTO24 AG achieves double-digit revenue growth from lotteries in 2023
- Core business and customer base expanded, market share increased
- Lottery revenue up by almost eleven percent
- Billings and EBITDA increase by almost 17 and 29 percent respectively
- Annual General Meeting convened on August 27 – resolution on squeeze-out]
LOTTO24 AG, a subsidiary of ZEAL Network SE and the German market leader in online lotteries, today published its annual report for 2023. The company can look back on a strong sales and earnings performance. In the past financial year, the company increased its billings by 16.7 percent to € 885.0 million (2022: € 758.4 million). Lottery revenue also increased by 10.8 percent to € 115.4 million (2022: € 104.2 million). In addition, LOTTO24 AG reached an important milestone in its business development with the launch of its online games offering, thus taking a significant next step in expanding its market leadership.
“In 2023, we further expanded our position as market leader and our brand awareness. We are proud of the fact that the LOTTO24 brand in particular has developed into a real hotbed of winners, producing more record winners last year than any other lottery provider in Germany,” comments Andrea Behrendt, CFO of LOTTO24 AG. “Our strong sales and earnings performance and our market share, which has grown to 41.4 percent, show that we are on the right track. In addition, our own product innovations were well received by our customers in the past financial year. Thanks to the positive business development, we are optimistic about the coming financial years.”
Strong EBITDA growth despite investment and expansion of the product portfolio
LOTTO24 AG gained 597 thousand customers in the past financial year (2022: 703 thousand). The year-on-year decline can be attributed to the significantly negative jackpot situation. Due to the company’s strategic decision to invest in brand development through increased TV advertising, marketing expenses were 5.5% higher than in the previous year at € 34.8 million (2022: € 33.0 million).
Despite the increased investment in brand development and the launch of online games, the company recorded a very strong EBITDA growth of 28.8% to € 33.0 million (2022: € 25.6 million).
Successful start for online games
In June 2023, LOTTO24 AG launched virtual slot games via the web stores of its LOTTO24 and Tipp24 brands, generating billings of € 41.6 million in its first year. Revenue generated with online games amounted to € 39.6 million.
Outlook for 2024
For the 2024 financial year, LOTTO24 AG plans to further expand its market leadership as an online provider of lottery products in Germany. The company expects revenue in the 2024 financial year to be in the range of € 267 million to € 277 million and EBITDA in the range of € 40 million to € 45 million.
Squeeze-out of LOTTO24 AG
LOTTO24 AG has today shared the invitation to its Annual General Meeting. This will take place on August 27, 2024 as an in-person meeting in Hamburg. The Management Board and Supervisory Board will propose to the Annual General Meeting the payment of a dividend of € 0.04 per share (2022: € 17.00).
The agenda also includes a resolution on the squeeze-out of the company’s minority shareholders. The main shareholder of LOTTO24 AG, ZEAL Network SE, has specified its transfer request of March 2024 and informed the Management Board of LOTTO24 AG that it has set the cash compensation for the intended transfer of the shares of the minority shareholders of LOTTO24 AG at € 479.25 per share. The amount of the cash compensation was determined by ZEAL Network SE on the basis of a company valuation carried out by KPMG AG Wirtschaftsprüfungsgesellschaft. The appropriateness of the cash compensation was confirmed by the court-appointed expert auditor ADKL AG Wirtschaftsprüfungsgesellschaft. The main shareholder holds around 95.45 percent of the share capital and voting rights of LOTTO24 AG.
The post LOTTO24 AG achieves double-digit revenue growth from lotteries in 2023 appeared first on European Gaming Industry News.
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EGT’s “Bell Link 2” made its debut in Germany as a special wide-area installation
EGT’s “Bell Link 2” linked-progressive multigame made its German debut in all four sites of the Casino SH Group. The latest addition of the bestseller “Bell Link” series went live on October 1, 2024 as a very special wide-area linked-progressive edition, called the “Schleswig-Holstein Jackpot”.
A total of 16 premium G 50 J2 St cabinets located in Casino Schenefeld, Casino Kiel, Casino Lübeck and Casino Flensburg, are offering a first ever globally-linked GRAND level progressive jackpot with a guaranteed starting value of 100.000,00 EUR, which can be won in any casino, at any time and with any bet.
Additionally, the concept offers a locally-linked MAJOR level progressive jackpot and two bonus prizes in each individual casino, which also can be won at any time and any bet.
Emilia Tomachinska, Managing Director of the E-Systems GmbH, EGT’s distributor in the German speaking regions of Europe, commented: “I am very proud that Casino SH once again trusted us and we were able to launch this captivating product, which will hopefully be a great addition to their gaming floors. After 13 years, in which a number of EGT products have been constantly demonstrating a rock-solid performance, the time was finally right for a very special product like the “Schleswig-Holstein Jackpot”. I believe that this installation will further strengthen our fruitful partnership and I hope that it will open the door for even more interesting and high-potential collaborations like this in the future.”
Rainer Schepull, CEO of the Casino SH Group, shared: “We are very glad to have realized this idea together with our long-term partners E-Systems and EGT. Our cooperation with them has always been on the highest level, and with this project – from start to finish – they both proved their professionalism once again. The new ‘Schleswig-Holstein Jackpot’ immediately caught the attention of our visitors and now we can’t wait for our first 6-digits GRAND JACKPOT WINNER! We all here at the Casino SH Group are very excited to find out when, in which casino location and who will hit it!”
The post EGT’s “Bell Link 2” made its debut in Germany as a special wide-area installation appeared first on European Gaming Industry News.
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EGT Digital to showcase innovations at BEGE Expo 2024
At the highly anticipated BEGE Expo 2024, EGT Digital will highlight its diverse portfolio of top-performing products and exciting innovations. Visitors can explore these offerings at booth 4.0 alongside the latest advancements from EGT.
The company’s extensive gaming solutions include popular instant games and its bestsellers Bell Link, Clover Chance, High Cash, and Single Progressive Jackpot, featuring over 120 in-house developed slots. Attendees can experience renowned titles like Burning Goals, Amazons’ Battle, and Sugar Duke, as well as the upcoming 5×6 Fruity Shots. This cocktail-themed game includes multipliers ranging from x2 to x500 and introduces Toppling Reels for enhanced win opportunities.
EGT Digital’s “all-in-one” betting platform X-Nave will also be on display with its four modular solutions: Sport Product, Gaming Aggregator, CRM Engine, and Payment Gateway.
The Sport Product will debut its Customizable Tournament Page, designed to ensure effortless navigation and a personalized betting experience.
The Gaming Aggregator, offering over 12,000 titles, will present features like the Buy Bonus, Hot and Cold games category with live RTP insights, and tools for personalized content such as the Recommendation Engine and Casino as Widget.
The CRM Engine will showcase advanced player segmentation and AI/ML-driven tools for tailored game suggestions.
The Payment Gateway will emphasize its secure, player-focused design with options like deposit repeat, bonus selection, and two-factor authentication.
“We are delighted to participate in BEGE Expo once again,” commented Tsvetomira Drumeva, Head of Sales at EGT Digital. “During this 15th edition we will showcase a solid dose of innovations, sure to impress clients and partners in the region. We are also looking forward to the BEGE Awards, where EGT Digital is a finalist in numerous categories.”
EGT Digital’s commitment to innovation and excellence continues to position the company among the leaders in the iGaming industry.
The post EGT Digital to showcase innovations at BEGE Expo 2024 appeared first on European Gaming Industry News.
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Navigating Japan’s Evolving iGaming Landscape: Insights and Predictions with Sachiko West
Current State of the Market (2024)
How would you describe the current state of the iGaming market in Japan in 2024? Have there been any significant milestones or shifts this year?
Despite the uncertainty of how the future Police campaigns will change the iGaming landscape in Japan, the number of online casino users including sports bettors seems to be growing steadily, and more online casinos are entering the Japanese market. One thing in common within the industry is that companies no longer hire anyone based in Japan for the Japanese market.
What are the most popular types of games or gambling activities among Japanese players right now?
Social casino games are on the up. Besides Pachinko-type slots, Plinko, Crash and Hi-Lo are increasingly popular among casino players.
How has the regulatory environment evolved in 2024? Have there been any notable changes that impacted operators or consumers?
In 2024, the Japanese Police arrested more people than the previous years in relation to use of online casinos. Streamers have become a clear target as well as payment providers based in Japan. Encouraged by the current Prime Minister’s support, the Police declared in August that they would investigate more iGaming affiliates and online casino operators even outside Japan. The Police made over 100 arrests so far in 2024 in relation to use of online casinos.
With more risks associated with promoting online casinos, streamers command higher fees than ever. Some YouTubers are migrating to other platforms trying to avoid detection by the Police.
What role has mobile gaming played in shaping the iGaming market in Japan, and how does it compare to desktop or other platforms?
Japan is a mobile market. Over 70% of players play on a mobile phone. As they are also technology-driven people, the usability of the casino platform on mobile phones could be the key to acquire and retain players. Those operators who study the Japanese mobile players’ behaviour and preferences would have enjoyed better results in both casino and sports betting in 2024.
Have advancements in technology, such as blockchain or virtual reality, been widely adopted in Japan’s iGaming sector?
More and more people are shifting to using cryptocurrency when they play online casinos. The demographics of crypt users are also wider in Japan. User age could be up to 60.
Challenges and Opportunities
What do you see as the biggest challenges currently facing operators and other stakeholders in the Japanese market?
Japan is an affiliate-driven market. The affiliate/ streamer costs are expected to increase as the risks increase. As direct marketing i.e. through local media is limited, boosting brand awareness can be tricky. You have to come up with creative ideas and catch the right moment.
With increasing competition from both local and international operators, how are companies differentiating themselves to attract Japanese players?
To start with, operators tend to hire native Japanese speakers to make sure the site is fully localized and to meet the needs of Japanese users. Then the branding. They also tend to offer bonuses and promotions that are appealing to Japanese users.
Are there any notable examples of successful partnerships between operators and local entities or institutions in Japan?
Live streaming providers and fighting event organisers are known to work with operators well.
How do you think offshore and unlicensed operators affect the market landscape and trust among consumers?
Not many unlicensed operators are known or promoted in the Japanese market.
Looking Ahead to 2025
What key trends or developments do you expect to emerge in Japan’s iGaming market in 2025?
More new Japanese players via social media would play at online casinos in 2025. More deposits will be made in cryptocurrency.
Are there specific regulatory reforms or discussions that might significantly impact the market next year?
The Police investigation efforts might impact the market, depending on who is involved and when they happen.
With the market’s growth, do you foresee new entrants, both local and international, establishing a foothold in Japan?
I expect to see more newcomers in the Japanese market, as they have room for growth. Having said that, they might struggle in the competition unless they have strong branding and region-specific strategies.
How important is localization for operators planning to enter or expand in the Japanese iGaming market? What should they prioritize?
It is extremely important to have the site fully localized. It is the top priority. Some affiliates don’t even work with you unless your site is fully localized and provides good Japanese customer support.
What technological innovations do you believe will drive growth in the iGaming sector in Japan in 2025?
Any functionality that brings about a community feel and better usability for users.
Insights and Predictions
Do you think Japan will ever move towards a more unified or liberal regulatory framework for online gambling? If so, what might catalyze this change?
Land casinos have been legalized and one is expected to be built in Osaka by 2030. Unfortunately, there is no sign of this new move being extended to online gambling in the near future. The government is opposed to it.
What advice would you give to iGaming companies looking to launch in Japan or expand their presence in 2025?
Look out for any new on the Police investigations on operators based outside Japan and any arrest of affiliates. You make sure to have native Japanese speakers to oversee the latest developments.
How do you see Japanese consumers’ preferences evolving in terms of gameplay, payment systems, and interaction with platforms?
Players always liked everything fast, but now they like it faster. Expectation of faster service in payments, game loading, support’s response, etc is higher than ever.
They also tend to like the feeling of ‘belonging’ whether as in VIP, community chat, player-to player activities.
Broader Market Perspectives
Lastly, what excites you the most about the future of iGaming in Japan?
As Japanese people are more familiar with international sporting events with live streaming services, I believe that the sports betting market will grow in the future. There have been talks within the government to legalize sports betting, too.
The post Navigating Japan’s Evolving iGaming Landscape: Insights and Predictions with Sachiko West appeared first on European Gaming Industry News.
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