Jumbo Interactive to complete acquisition of StarVale Group
The lottery retailer has received Gambling Commission approval for its acquisition.
UK.- The Australian lottery retailer Jumbo has announced that it plans to complete its acquisition of the UK-based StarVale Group on November 1. The company has received approval from the British Gambling Commission to buy the lottery management and digital payments business through Jumbo Interactive UK.
StarVale will form part of Jumbo’s Managed Services business segment with Gatherwell, which it acquired in 2019, and Stride Management in Canada.
Jumbo had agreed to a deal in January under which it would pay AU$32.1m (£18.3m) followed by deferred payments of $8.5m based on earnings targets, however, regulatory approval took longer than expected. Jumbo said the deal would form part of its global growth strategy.
StarVale supplies lottery management and payment services to more than 45 charity and not-for-profit lotteries and 850,000 lottery players. It provides direct debit payment services through DDPay Ltd.
Last year, Jumbo Interactive raised concerns about a loophole in the UK that allows prize draws to avoid regulations that cover lotteries and raffles. Its research found that nearly one in ten people who entered ‘big ticket’ prize draws, for example, those that offer the chance to win multi-million-pound houses or luxury cars, ended up in debt as a result.
It raised consumer protection concerns over credit card debt and a lack of transparency around prizes and charity donations.