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TIPP24 TO REINVEST IN GERMAN LOTTERY BUSINESS
Has the prospect of a liberalised German market prompted the move?
Industry observers are speculating that Tipp24.com's return to the German lottery brokerage market is rooted in indications that the market may be liberalised in the future following anti-monopolistic rulings by the European Court of Justice recently.
The Hamburg-based online gaming operator announced this week that it is preparing to re-enter the German lottery brokerage market after selling the remainder of its outstanding shares for over Euro 9 million. A company statement advises that the proceeds will be used to rebuild its online brokerage of State-run lotteries in Germany’ by partnering with lottery companies in the nation’s Federal States.
“Following the European Court Of Justice’s rulings, we are now setting a clear sign for the reestablishment of our brokerage business in Germany,” said chief executive Hans Cornehl. “We aim to resume our former very successful cooperation with lottery companies and begin brokering the state-run Lotto once again via the Internet."
Tipp24 brokered stakes of around Euro 1.5 billion in the past and revealed that it decided to sell treasury shares in order to finance its reestablishment in the country rather than use funds from its UK minority holdings until ‘the respective legal questions have been settled’.
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