Sportech eyes takeover of lottery supplier Lot.to
Sportech has announced plans to acquire iLottery solutions provider Lot.to Systems Limited as part of a strategic partnership aimed at broadening its offering.
Just days after the technology company issued a second profits warning this year and announced the departure of CEO Andrew Gaughan, Sportech said the partnership would enable it to provide a more comprehensive suite of gaming opportunities. While giving no further financial details, it said it had entered exclusive negotiations with a view to acquiring 100% of Lot.to as it seeks to “further solidify” its global gaming services position.
UK-based and regulated, Lot.to has worked with gaming companies including Lottoland and CelebPoker, as well as giant media organisations Sky and Virgin. Its products include lottery and betting games and player management systems delivered on its cloud-based iLottery platform.
Richard McGuire, Sportech’s new executive chairman, said the potential for lottery is central to its interest in Lot.to, which was founded in 2016.
“The global gambling market is estimated to reach an annual turnover of $635bn by 2020, with the lottery sector accounting for about 30% of that,” said McGuire.
“Our strategic alliance with Lot.to will enhance our existing successful core lottery product and will help us to capitalise on the worldwide growth of lottery and lottery-style games and reach an ever-expanding digital audience.”
The announcement came on the same day it was announced McGuire backed Sportech by buying 250,000 shares in two transactions worth a total of just over £100,000. Last week Sportech said its failure to secure expected international sales led to a lowering of its projected earnings for the year, leading to its share price plummeting.
Explaining the potential of the iLottery sector, Andrew Lindley, co-founder of Lot.to, said “For worldwide appeal, no other gambling product comes close to lotteries.
“Our future with Sportech is hugely exciting because our clients can benefit from the combination of Sportech’s proven robust processing technology and hardware and our innovative iLottery platform in a single offering as well as the obvious synergies in sports betting platforms.
“Together, we can offer clients a truly world-class omni-channel solution that’s incredibly powerful.”