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Jumbo Interactive granted German lottery licenses
Friday July 12,2013 : AUSSIE ONLINE LOTTERY SUPPLIER EYES THE GERMAN MARKET
Jumbo Interactive granted German lottery licenses
The Australian online lottery provider Jumbo Interactive (perhaps better known for its Australian website Oz Lotteries) is apparently actively pursuing opportunities overseas, in particular the U.S., the U.K. and Germany, where it has just been awarded a five year licence in all 16 lander (provinces).
According to a statement issued to Proactive Investors Australia this week, the company is optimistic that based on growth rates in neighbouring countries, the German Internet lottery market could reach A$2 billion in value within five years.
Under the licence, Jumbo can sell the EuroJackpot which is the largest lottery game in Germany with a minimum jackpot of Euro 10 million and a maximum of Euro 90 million.
With thirteen years' experience in the business, Jumbo claims it is well positioned to succeed in a growing German market, where - as is the case in Australia - the company will earn a commission based on tickets sold, requiring an investment of A$2 million to A$3 million to establish a beachhead and a customer database of regular players.
This will be funded from Jumbo’s existing cash reserves and future net cash income.
Hopefully a German venture will produce profitability somewhat faster than was the case in Australia, where it took Jumbo around two years to achieve this happy state from the 1.5 million clients it has on its accounts.
To date, Jumbo has signed agreements with three German states - Schleswig-Holstein, Baden Weurttemberg and Berlin - and it is working on the others.
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