Tipp24 AG restructures business
- Lottery product brokerage pooled in UK
- AG's Executive Board to focus on development of new business in Germany and Europe
Tipp24 AG plans to restructure its business fields as of 1 January 2009. This will include pooling the majority of its activities in connection with brokering or offering lottery products with MyLotto24 Ltd. and its subsidiaries. MyLotto24 Ltd. has been operating in the UK since 2007.
This move concerns the brokerage of state-run German lottery products, the offerings of subsidiaries Ventura24 in Spain and Puntogiocco24 in Italy, as well as the current activities of the British subsidiaries. However, Tipp24 AG will continue to broker the German class lotteries NKL and SKL.
By pooling its gaming activities with MyLotto24 in the UK, the Group is laying the foundations for a positive development of its foreign business. Tipp24 AG is also drawing the consequences from the German State Treaty on Gaming, which it believes contravenes valid law. The second stage of this Treaty comes into effect on 1 January 2009 and bans the brokerage of state-run lotteries via the Internet.
Tipp24 AG hopes that after the legal situation has been settled in its favour it can begin its activities from Germany again as swiftly as possible.
The Executive Board of Tipp24 AG has decided to focus in future on the expansion of its Tipp24Games division and to identify and acquire new business models in Germany and Europe.
Jens Schumann, Chairman of the Executive Board of Tipp24 AG, states: "The pooling of our European lottery business is a further step towards developing the European market. At the same time, we shall continue to pursue legal action against the State Treaty on Gaming, as its content is untenable. Its underlying claim that lotteries are addictive has still not been proven by any studies. It is unacceptable that successful, modern companies should have the basis for their business removed in such a way. Moreover, we firmly believe that there are already plans to allow the state-run lottery companies to market their products via the Internet in the near future."
The listed company Tipp24 AG has been operating profitably since 2002 and contributed well over 250 million euros to German tax revenues in the years 2007 and 2008 alone. The company employs 170 people in Germany.
Tipp24 was established in 1999 and is now the market leader for lottery products in the Internet on the basis of billings. The company succeeded in achieving impressive growth rates right from the start. Almost all state lottery products are supplied. It only takes a few mouse clicks to buy a lottery ticket -round the clock, quickly and reliably. The ticket receipt is kept safely, winners are notified about their prizes automatically by text message and e-mail and prizes are credited automatically. Subsidiaries of Tipp24 (http://www.tipp24.com) are Ventura24 in Spain (http://www.ventura24.es), Puntogioco24 (http://www.puntogioco24.it) in Italy and MyLotto24 (http://www.mylotto24.co.uk) in the UK.
Shares in Tipp24 AG have been traded at the Frankfurt Stock Exchange since 2005.