Lotto land eyes jumbo

Lottoland eyes Jumbo bet
Today's AFR might explain the recent surge in the SP.
Edited by Sarah Thompson, Anthony Macdonald and Joyce Moullakis


February 22, 2016, 11:45pm

http://www.copyright link/content/dam/images/g/m/t/8/j/l/image.related.afrArticleLead.620x350.gmzu1y.png/1456121046537.jpg
With Jumbo's shares up by 40 per cent in the last year giving it a market cap of $55 million, it could be a big bite given Lottoland's modest local numbers.
After ruffling the feathers of gaming giant Tatts Group by offering a rival product, Gibraltar-based lotteries operator Lottoland is now tipped to be weighing a bid for licensed online retailer Jumbo Interactive.

Lottoland received a five-year Northern Territory wagering licence on Christmas Eve. It has been making big noises about muscling in on Tatts' turf by offering punters the chance to bet on the outcome of its Australian lotteries rather than purchasing an actual ticket for the draw.

Jumbo Interactive, which bundles together various lotteries draws, including those of Tatts, is an obvious fit for Lottoland given its existing footprint in the market with nearly 2 million customer accounts.

With Jumbo's shares up by 40 per cent in the last year giving it a market cap of $55 million, it could be a big bite given Lottoland's modest local numbers.

Street-Talk also understands Lottoland is poised to land a 'white label' deal with UK corporate bookmaker Ladbrokes which will offer Lottoland's products on Ladbrokes' Australian website and app.

Another British rival, William Hill, led by Tom Waterhouse in Australia, is also thought to be sizing up a similar arrangement with Lottoland. Tatts boss Robbie Cooke shrugged off the threat at its interim results last week but it is clear the incumbent has a new competitor to grapple with.

Cheers
Hot legs