Lottoland agrees new risk management deal

Lottoland has agreed the gambling industry’s largest ever reinsurance transaction by announcing a new deal to cover potential pay-outs over the next two years.

The new deal, with undisclosed insurers, provides €120m of Insurance Linked Security (“ILS”) coverage alone and is the “cornerstone” of Lottoland’s risk management system, the operator said

It is Lottoland’s third two-year agreement with investors, after their previous two triggered a renewal option after one year due to Lottoland’s strong growth.

The firm said its risk-management system has been proven to be reliable, having successfully covered winnings to the tune of €838m, including the largest pay-out of €22m to a customer from Berlin.

Lottoland CEO, Nigel Birrell, said, “Our innovative approach to this market is really paying off. The ILS provides a fully reliable way to reinsure against big wins and we’re delighted to have this two year agreement in place which we have taken to the next level – the only solution in the industry which has proven fast and reliable pay-out of winnings.”

The insurance deal also covers Lottoland’s growing B2B arm which has recently been integrated into several operator’s sites, including William Hill Australia, Kindred Group and GiG.