Sportech enters talks to acquire online lottery provider

Sportech has announced a strategic alliance with online lottery provider LOT.TO Systems, with a view to acquiring 100% for the company.

According to Sportech, the deal will provide mutual clients with a “broader suite of gaming opportunities” and “solidify Sportech’s global gaming services position”.

LOT.TO is a regulated UK-based firm, and offers lottery and betting games via its cloud-based ‘iLottery’ platform.

“The global gambling market is estimated to reach an annual turnover of US$ 635bn by 2020, with the lottery sector accounting for about 30% of that,” said Richard McGuire, executive chairman of Sportech.

“Our strategic alliance with LOT.TO will enhance our existing successful core lottery product and will help us to capitalise on the worldwide growth of lottery and lottery-style games and reach an ever-expanding digital audience.”

Last week, Sportech announced that its current CEO Andrew Gaughan would leave in February 2019 to “pursue other interests”, after only nine months in the role. Gaughan is the third CEO to depart Sportech inside of 12 months.

Andrew Lindley, co-founder of LOT.TO, called the combination of the two companies “hugely exciting”, highlighting the appeal of lotteries to a worldwide audience.

Lindley added: “Our clients can benefit from the combination of Sportech’s proven robust processing technology and hardware and our innovative iLottery platform in a single offering as well as the obvious synergies in sports betting platforms. Together, we can offer clients a truly world-class omni-channel solution that’s incredibly powerful.”