Zeal Network SE, a German lottery brokerage, has secured a significant entry into the UK prize draw sector by acquiring a 96.5% stake in SevenCanyon Limited, a UK-based prize draw operator. This strategic acquisition was announced on Thursday and positions Zeal in what it describes as Europe's largest market for digital prize draw products.
SevenCanyon operates several prominent UK digital prize draw platforms, including 7days Performance, Redline Competitions, and UK Carp Competitions. Prior to this acquisition, Zeal held a 3.5% share in SevenCanyon. The total cost for acquiring the remaining shares is estimated at approximately £33.8 million, although this will be adjusted after the deal closes. Furthermore, an earn-out payment that could reach up to £4.8 million is due within six months following the completion of the deal.
To finance this acquisition, Zeal has arranged for a €40 million loan with a seven-year term through Deutsche Bank. This move aligns with Zeal's intentions to broaden its market presence in the prize draw sector, a strategy it hinted at during its FY25 earnings call in March. CEO Dr. Stefan Tweraser expressed confidence in having a "strong war chest" for investment opportunities.
Interest in prize draws has long been a notable aspect of Zeal's brand. Helmut Becker, the former CEO, previously pointed out the potential for attracting younger demographics through innovation within the industry. He mentioned, "I do think generally speaking there’s an opportunity for more innovation in our industry," highlighting the need to address specific target groups through innovative products.
Tweraser characterized the acquisition of SevenCanyon as a strategic move towards geographic and product diversification, stating, "SevenCanyon is one of the most successful prize draw operators in the UK – we have known them for years. With the acquisition, we hit the ground running in a highly attractive and growing market."
CFO Andrea Behrendt underscored the financial soundness of SevenCanyon, remarking, "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."
Financially, Zeal anticipates that this acquisition will enhance its EBITDA, with SevenCanyon expected to contribute significantly to overall revenue and EBITDA after consolidation. For 2026, the company reaffirmed its EBITDA guidance, projecting between €70 million and €75 million, assuming normal jackpot conditions in Germany. Zeal’s revenue for FY’25 was reported to be 2% higher than its previous forecast of €205 million to €215 million, with EBITDA reaching €68.8 million, the top end of its earlier estimate of €63 million to €68 million.
Zeal executives expressed optimism that the UK prize draw market will continue to enhance its regulatory frameworks, ultimately benefiting operators with established compliance abilities. This segment of the industry is currently regulated by a voluntary code established by the Department of Culture, Media and Sport (DCMS) in May. Jamie Pinner, a senior figure at DrawHouse, noted the current advantage for prize draws, since they are not subjected to Remote Gaming Duty. He stated, "That makes them a far more efficient revenue stream than sportsbook or casino products, at least for the time being."
Last week, the UK's prize draw competitiveness saw the formation of a trade body intending to represent the industry. The Prize Competition Council (PCC) aims to unite operators to promote responsible standards, enhance player protections, and foster long-term development. According to an April report from consultancy Rokker, the UK prize draw market has generated around £1.3 billion in annual revenue while attracting approximately 7.4 million active players.
