Zeal Network buys majority stake in UK Prize draw operator
The deal will give the German lottery brokerage a major presence in an increasingly structured UK prize draw sector.
UK.- The German lottery brokerage Zeal Network SE is expanding into the growing UK prize draws market. It has announced an acquisition of a 96.5 per cent stake in SevenCanyon Limited, which runs digital prize draw platforms.
Zeal already held a 3.5 per cent interest in the company prior to the transaction. It says the deal gives it a strong position in “Europe’s largest market for digital prize draw products.” SevenCanyon’s portfolio includes sites such as 7days Performance, Redline Competitions and UK Carp Competitions.
The purchase price for the remaining shares is approximately £33.8m, subject to post‑completion adjustments, with an additional earn‑out of up to £4.8m payable within six months. Financing was secured through a €40m seven‑year term loan arranged by Deutsche Bank.
Zeal expects SevenCanyon to contribute significantly to group revenue and earnings.
Zeal’s Network’s strategic expansion
The move reflects Zeal’s ambitions to diversify both geographically and by product. Zeal has been signalling its interest in prize draws for some time, seeing their strong appeal among younger demographics as a strategic complement to its lottery selling.
The move comes amid increased scrutiny of the UK prize draw sector, with lottery operators complaining that it presents unfair competition for their offerings. However, for now the government has held off on regulating the sector, instead accepting the introduction of a voluntary code of conduct.
A new trade body, the Prize Competition Council (PCC), was launched last week to promote responsible standards and strengthen player protections. Some expect that a formal regulatory framework is inevitable. That would likely lead to consolidation in the sector, potentially benefitting the largest and most established operators.
Zeal Network CEO Dr Stefan Tweraser said in today’s announcement: “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 added: “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.”
For 2025, Zeal reported revenue 2 per cent above its forecast range of €205m-€215m and EBITDA of €68.8m. The company has reaffirmed its 2026 EBITDA guidance of €70-75m, assuming a normal jackpot environment in Germany.
