Lottoland is reviewing options to further its pursuit of a London public listing, according to City news sources.
The Gibraltar-based online lottery brokerage is reported to have hired Peel Hunt as its strategic financial advisor, charged with leading its bookbuild should the company proceed with its desired London IPO.
Founded in 2013 by German digital entrepreneur David von Rosen, Lottoland is reported to be eyeing a £1 billion valuation listing on a London-based exchange.
Since 2014, Lottoland has hedged the results of global lotteries, allowing its customers to play on individual lottery draws (Italy’s SuperEnalotto, Lottery, US MegaMillions, Irish Lotto) regardless of national laws.
During 2019, Lottoland revealed that it had secured its 10 millionth customer, with the company further stating that it had surpassed £300 million in annual revenues.
Despite its growth, Lottoland has been at the centre of notable high court disputes by governments and gambling regulators against ‘synthetic lotteries’ hedging results on public lottery outcomes.
In 2018, Lottoland won its long-term dispute against Tabcorp Holdings, as the Australian Communications and Media Authority (ACMA) found that its lottery betting services did not infringe on Tabcorp’s national lottery draws.
However, in the same year Lottoland lost its legal challenge against UKGC and DCMS for hedging the results of the EuroMillions jackpot – as the UK High Court stated that no licensed gambling firm could take bets on the outcome of National Lottery results subject to rules of the 2005 Gambling Act.
Reviewing its options, Lottoland may become the latest igaming incumbent to undertake an IPO listing through a combined merger with a Special Purpose Acquisition Vehicle (SPAC).