According to City news outlets, Lottoland is considering its options for pursuing a London public listing.
According to sources, the Gibraltar-based online lottery brokerage has appointed Peel Hunt as its strategic financial adviser, who will be in charge of the bookbuild if the firm moves ahead with its proposed London IPO.
£1b valuation on a London-based exchange
Lottoland, which was founded in 2013 by German digital entrepreneur David von Rosen, is reportedly targeting a £1 billion valuation on a London-based exchange.
Lottoland has been hedging the outcomes of worldwide lotteries since 2014, encouraging its clients to participate in actual lottery draws (Italy’s SuperEnalotto, Lottery, US MegaMillions, Irish Lotto) independently of national rules.
In 2019, Lottoland confirmed that it had signed up its ten millionth client, as well as reporting that its annual sales had reached £300 million.
High court battles
Despite its rise, Lottoland has been at the centre of high court battles between governments and gambling regulators over so-called “synthetic lotteries” that hedge public lottery results.
The Australian Communications and Media Authority (ACMA) ruled that Lottoland’s lottery betting facilities did not infringe on Tabcorp Holdings’ national lottery drawings, resolving a long-running controversy.
However, Lottoland lost its legal challenge against UKGC and DCMS for hedging the EuroMillions jackpot results in the same year, when the UK High Court ruled that no approved gambling company could take bets on the outcome of National Lottery results according to the 2005 Gambling Act’s regulations.
After considering its options, Lottoland may become the next igaming company to go public through a merger with a Special Purpose Acquisition Vehicle (SPAC).