Unique, cash generating business model

ZEAL Network SE, Hamburg, Germany (hereinafter also referred to as ‘ZEAL’ or ‘the Company’), is the parent of an e-commerce group of companies that create online lottery experiences for its customers. Founded in Germany in 1999, ZEAL was initially set up as a lottery broker. In 2005, Tipp24 AG (as it was then called) was floated on the Frankfurt stock exchange.

In 2009, the Group changed its focus from lottery brokerage to lottery betting and later moved its registered office to London in 2014.

In May 2019, ZEAL completed the takeover of LOTTO24 AG. It transitioned its former Tipp24 secondary lottery business to a German online lottery brokerage business in October 2019 and has since become the leading German online provider of state and other lottery products once again. In the same month, it relocated its registered office back to Germany.

In 2020, ZEAL expanded its product portfolio with the addition of its own charity lottery ‘freiheit+’. A further charity lottery ‘Die Deutsche Traumhauslotterie’ was added in January 2022.

As of June 2023, ZEAL also offers virtual slot machine games (‘games’) on the portals of LOTTO24 AG (LOTTO24, Tipp24).

Our Germany segment

The Germany segment comprises the Group’s domestic business activities: the online brokerage of lotteries, the running of charity lotteries and the operation of games. Its cost base includes direct operational costs as well as the Group’s shared costs. In this segment, we broker lottery products via the Internet (lotto24.de, tipp24.de) and receive brokerage commissions from the lottery operators. We can therefore generate income without having to assume ourselves the book-making risk for the products of the German Association of State Lottery Companies (‘Deutscher Lotto- und Totoblock’ – DLTB). Amongst other things, we offer our customers the possibility to participate in the lottery products
‘LOTTO 6aus49’, ‘Spiel 77’, ‘Super 6’, ‘Eurojackpot’, ‘GlücksSpirale’, ‘Keno’, lottery clubs, instant lotteries and ‘Deutsche Fernsehlotterie’, which are all well positioned on the market. On behalf of, and in the name of, our customers, we enter into gaming agreements with the respective lottery operator. In addition, we enable our customers to participate in two charity lotteries for the promotion of educational projects, which we offer together with BildungsChancen gGmbH:

  • ‘freiheit+’ under the Tipp24 brand since March 2020 and also under the LOTTO24 brand since November 2020.
  • ‘Die Deutsche Traumhauslotterie’, launched in January 2022. As of June 2023, we also offer games on our portals (LOTTO24, Tipp24).

As of June 2023, we also offer games on our portals (LOTTO24, Tipp24).

Our ‘Other’ segment

The Other segment comprises the remaining elements of our business, including our online lottery operation on behalf of the national organisation for the blind in Spain, ONCE, and our investments in start-ups under ZEAL Ventures.

ZEAL Ventures continues to pursue new lottery-related, start-up investments using a risk-managed portfolio approach. We have made several start-up investments, which we are closely monitoring and supporting where necessary while continuing to pursue additional investment opportunities. Our objective is to learn from these companies, generate profits and/or integrate exciting business ideas into the ZEAL Group.

Our strategy

ZEAL’s strategic targets are:

  • Continue to scale our business model in Germany and further expand our strong market position.
  • Establish new lotteries and games.
  • Continue to develop our Spanish business via customer growth and an expanded partnership portfolio.
  • Identify gaming and lottery innovations in order to gain relevant market knowledge and test new product ideas, thus enabling us to tap further target groups, and in future to
    profit from the sale of investments.

Our vision

Based on the medium to long-term assumption of an online share of 50 to 70% of the total German lottery market (DLTB plus charity lotteries, GKL and other regulated lotteries) of around €10 billion, this would also result in an online lottery market potential of €5 to 7 billion. As our objective is to further expand our own market share to 50%, our long-term billings potential would therefore lie at around the €2.5 to €3.5 billion mark.