Zeal Network Finalizes Majority Acquisition of UK Prize Draw Operator SevenCanyon

German lottery brokerage Zeal Network SE has significantly expanded its presence in the United Kingdom's digital prize draw market by acquiring a substantial majority stake in SevenCanyon Limited. The transaction sees Zeal Network take a 96.5% interest in the UK-based operator, which manages popular digital prize draw platforms including 7days Performance, Redline Competitions, and UK Carp Competitions. Prior to this deal, Zeal had already held a 3.5% stake in SevenCanyon.

The acquisition price for the remaining shares totaled approximately £33.8 million, though this figure remains subject to post-completion adjustments. An additional earn-out payment of up to £4.8 million could also be made within six months of the deal's close. Financing for the purchase was secured through a €40 million seven-year term loan provided by Deutsche Bank.

This strategic move underscores Zeal Network's ambition to diversify both its geographical reach and product offerings. The company views prize draws as a strong complement to its core lottery business, particularly due to their appeal among younger demographics. Dr. Stefan Tweraser, CEO of Zeal Network, emphasized the immediate impact, stating, "With the acquisition, we hit the ground running in a highly attractive and growing market."

The expansion comes amid increased scrutiny within the UK prize draw sector, with some lottery operators expressing concerns about perceived unfair competition. While the government has yet to implement formal regulation, it has endorsed a voluntary code of conduct for the industry. Furthermore, a new trade body, the Prize Competition Council (PCC), was recently established to promote responsible standards and enhance player protections. Industry observers anticipate that a formal regulatory framework may eventually emerge, potentially leading to consolidation and benefiting established operators.

Zeal Network anticipates that SevenCanyon will make a notable contribution to its overall group revenue and earnings. Andrea Behrendt, Zeal's CFO, highlighted the profitability of the acquired business, noting, "The business is highly profitable, and the purchase will mainly be financed through a new loan agreement, preserving Zeal’s flexibility for further capital allocation." The company previously reported 2025 revenue that was 2% above its forecast, alongside EBITDA of €68.8 million, and has reaffirmed its 2026 EBITDA guidance of €70-75 million, contingent on a stable jackpot environment in Germany.