Merkur targets Poland with Totolotek acquisition

Gauselman Group’s Merkur Sportwetten subsidiary has acquired the Polish betting business Totolotek SA from Intralot.

The share purchase agreement has already been concluded for an undisclosed sum, with both parties now awaiting merger clearance.

Merkur said the deal would allow it to enter the Polish market and expand in Europe.

Totolotek is one of the top-three omni-channel betting companies in Poland, according to a company statement, with 560 employees, 260 retail points, and online and mobile sites.

“Sports betting is extremely popular in Poland and for many football fans it’s an essential part of a good match,” said Niko Steinkrauß, CEO of Merkur Sportwetten.

“The acquisition of Totolotek is an important part of our growth strategy to open up the Polish market and thereby gain another core market in Europe alongside Germany, Austria, Denmark and Belgium.”

Intralot said the sale was part of its strategy to focus on core markets including the US.

“In my view, this transaction will create value for all involved parties,” said Intralot CFO Andreas Chryssos.

Operators and industry trade groups have criticised Poland’s punitive 12% turnover tax, but active operators have made it work by passing the charges onto their customers.

Totolotek CEO Adam Lamentowicz added: “We are delighted to have gained a strong strategic partner with Merkur Sportwetten, and the Gauselmann Group behind it.

“With its experience and financial strength as well as its innovative products for stationary trade and the online and mobile sector, it will help Totolotek achieve further growth.”