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German lottery firm's move into sportsbetting doing well
Jaxx AG, the German lottery firm that moved into the sportssbetting field two years ago, published positive results for June this week, showing record levels in profits and customer acquisition for the month, mainly from its sportsbetting activities.
The firm runs lotteries and has betting offices in Altenholz near Kiel, and reports that its success was aided by betting action on the Euro2008 football championships and the Deutsches Derby flat racing event in Hamburg, which yielded consolidated revenues of over Euro 10 million in June 2008.
“We benefited particularly by avoiding one particularly dreaded scenario, the favourites did not win either the European Championships or the Derby, and this enabled us to post a healthy profit,” said Stefan Hanel, the Finance Director of the company.
Jaxx bookmaking margins were well above the industry average because the overwhelming portion of its betting business is now generated outside of Germany and that country's restrictive gambling controls under the controversial State Treaty on Gaming. The Treaty does not apply to horse betting but Jaxx stated that it is gradually achieving greater independence from the German lottery market by the successful expansion of its betting business.
Net betting incomes were good in a company that has not previously generated gross profits of more than Euro 1.96 million in a single month from betting products. Carefully planned advertising had also succeeded in pushing new customer signups to higher levels, a company spokesman said.
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