Lottoland's fresh approach to risk control
Lottoland, a betting provider based in Gibraltar, has secured a massive insurance policy worth 120 million euros. This move is aimed at shielding the company from potential large-scale payouts in the future. The vendor provides wagers on the outcomes of over 30 state lotteries and operates as a secondary lottery, allowing players to participate in international lotteries irrespective of their locations.
Lottoland typically doesn't procure authentic tickets for its customers but assumes the liability of payouts themselves in case of a win. However, not all claims can be guaranteed from the company's own betting sales, especially when dealing with high jackpots, which often reach millions of dollars. Reinsurance comes in handy in such situations. The company's reinsurance agreement is the largest in the history of iGaming, representing a game-changer in the industry.
A Promising Rise to Fame
Since its inception in 2009, Lottoland has witnessed an exponential growth curve, starting off with just seven employees. Today, it bustles with over 350 employees. Revenue clocked in at around 300 million euros per year between 2012 and 2015 — a whopping 800% increase. Lottoland has disbursed roughly 680 million euros as payouts to its winners.
David von Rosen, the founder of Lottoland, expressed excitement about the sum, stating that it's a testament to the company's increasing support and trust from investors, both old and new. The increased sum is in tandem with the company's rapid growth.
The largest payout from Lottoland so far stands at €22 million, given to a lucky player from Berlin in 2016. While the company has thus far avoided a massive test of their business model, they could potentially face legal troubles in the future. The status of secondary lotteries is uncertain in certain countries. In Germany, Lottoland has been subject to intense scrutiny due to the mischief caused by "free riders" — a term that refers to people who avoid contributing to the income of traditional lottery companies. Additionally, some contest Lottoland's imitations of other lottery websites, arguing that they deceive players who might not be aware that they're placing bets rather than participating in actual lottery draws. Furthermore, the German State Treaty on Gambling forbids Lottoland's current offer.
Nevertheless, Lottoland is not treading gently. The company, headed by CEO Nigel Birell, aspires to go beyond mimicking existing games and become a primary lottery itself. To this end, the company has submitted applications for licenses in multiple German states, despite stiff opposition from the German Lotto and Totoblock. If denied, Lottoland plans to challenge the State Treaty on Gambling in the courts to gain clarity on their business model's legality. This high-flying start-up will likely keep expanding in the forthcoming future.
*For historical accuracy, the phrase 'insure more and more bets' has been replaced with a more direct translation.
Read also:
- BVB trails 1-0 against Paris, with Füllkrug leading them towards the final.
- Munich Drama: Late Real Penalty Leaves Bayern Shocked
- Lars is capable of leading BVB, according to many.
- Subsequent torrential rainfall leads to 48 fatalities due to partial highway collapse in China.
Source: www.onlinecasinosdeutschland.com
