In 2018 Lottoland obtained insurance that would protect the operation in the event that someone were to win a huge jackpot prize. As a result, Lottoland pays out big jackpot wins with insurance. They did this in order to revolutionize the lottery.
The overhaul of the risk management system means that Lottoland now has ₤120 in insurance if they need it for a payout. According to the company, there is no other insurance policy in the history of the industry that is worth this much.
Since 2015 Lottoland cut three deals for insurance, with this one being the latest. At that time the company was growing so quickly that they wanted to protect themselves from going bankrupt.
One reason that the company grew as fast as it did is that Lottoland makes. Lottery games available online to players in countries that don’t actually offer it. Some of Lottoland’s competitors are upset about this, including Camelot. Those who run that company feel that Lottoland is cutting into their revenue. This is a problem for Camelot because their revenue is donated to charity.
Thanks to the controversy between the two companies regulations in the UK were changed. The government considered the idea of disallowing any third party betting in the country. Lottoland did have to pay a fee to the UK Gambling Commission. They were charged the fee because the commission felt that the ways in which they advertised to players was deceptive. Some didn’t understand that they were participating in a lottery game when they gave Lottoland their money.
The CEO of Lottoland spoke up against the way they were treated by the gambling commission. He stated to the media that what the government should be focusing on about Lottoland was the fact that they donated money to local causes. He said that there was no way Lottoland could be a threat to Camelot. According to the CEO, Camelot lost sales due to the fact that it was extremely difficult for anyone to win any of their games.
Despite the controversy surrounding the site, Lottoland is quickly expanding. It is striking deals with other online operators, such as William Hill Australia and the Kindred Group. Many other lottery operators are doing their best to copy the formula Lottoland has used because they want to become just as successful.
The Lottoland CEO has stated he has no problem with healthy competition. He would rather compete with other valid online lottery operators than people he considered to be using the monopoly of the lottery business as a cover.
Only time will tell what happens to Lottoland in the future. It may continue to thrive as it proves it is a force to be reckoned with. Lottoland has helped change the course of the industry. If their success continues they may become one of the most powerful online lottery game operators that the world has ever seen.