Lottoland sells Jumbo Interactive stake after just two months
Bet-on-lotteries operator understood to see limited future growth opportunities from investment
Lottoland has sold its 6% ownership stake in Australian lottery re-seller, Jumbo Interactive, just two months after making the investment.
The ASX-listed Jumbo Interactive informed investors of the sale on Monday, with Lottoland divesting around 3.1m shares at AU$2.55 a share, for a total transaction value of $7.9m (£4.6m).
The sale price reflected a small increase on the original investment made by Lottoland.
The bet-on-lotteries operator made no public comment on the reasons behind the sale, but EGR Intel understands the company sees little opportunity for growth at Jumbo Interactive, with the firm reliant on re-selling tickets from the government-licensed lottery operator Tatts Group.
Lottoland has criticised in the past the “limited and antiquated” offering of the monopoly operator.
Following the sale, Lottoland will continue to focus on its own products in the Australian market where it launched in January last year.
The firm has since secured naming rights to the stadium of the NRLS’ Manly Sea Eagles, signed a B2B partnership with William Hill Australia, and this morning announced the title sponsorship of the Mitchell Street Mile in Darwin.