Lottoland is one of the fast-growing secondary lottery service providers. Hence the company had decided to take out the insurance linked securities cover. The reason for the insurance is to cover the company in the event that one of their customers bets correctly on anyone of the lottery jackpots.
Lottoland offers players the chance to place bets online for the 30-various lottery draws that happen in different countries. The insurance that they have taken allows them to be able to pay out large jackpot winnings.
Recently they announced that they have renewed their insurance cover and also increased the cover amount. Their initial agreement was at €100 million. However, they increased the coverage to €120 million, and it is considered to be the biggest reinsurance agreement in the gambling industry. The increase is attributed to the growth in the bets that players are placing.
Biggest Payout so far
Thus far, the biggest payout that Lhas madehas made so far is €22 million to a lucky German player in 2016. The lucky winner is one out of the six million players that the lottery provider services. Since its launch in 2013, Lottoland paid a collective amount of €838 million.
Camelot complain on Lottoland
Camelot, a traditional lottery provider, has been questioning Lottoland’s business model. It claims that the brand is taking their share of the market. According to Camelot, the cut on their lottery revenue will affect the charitable causes that they support.
As a result of this complaint, in March the UK government decide to have a consultation for forbidding third party betting for draws on EuroMillions. It may also be the cause for Lottoland receiving a £150k penalty for using vague language in their marketing.
However, according to the Lottoland CEO, Nigel Birrell, this is a form of adulation because it means that they are doing something right. He also said that he accepts the competition from other brands that fall in the same category as their company.