Q&A: Nigel Birrell, Lottoland chief executive

Lottoland has enjoyed something of a meteoric rise since its inception in 2013.

The bet-on-lottery supplier, which was formed in Germany but soon relocated to Gibraltar, has rapidly grown to boast more than 130 staffers, two million customers and approximately 200,000 daily players, making it one of the biggest operators of its kind.

Last month this growth was recognised at the eGR Operator Awards in London where Lottoland scooped the Rising Star and Alternative Operator of the Year awards.

The firm’s success has been overseen by CEO and former bwin.party director Nigel Birrell (pictured, centre) and Lottoland appears ready to kick-on again after recently securing an Insurance-Linked Security (ILS) scheme, which effectively protects the company from any major jackpot pay outs.

eGaming Review caught up with Birrell to discuss the concept of Lottoland, plans to expand into new markets and current regulatory issues in the UK.

eGaming Review (eGR): What is the idea behind Lottoland?

Nigel Birrell (NB): The whole basis of the company was to become the first international provider of lotteries. We think is it is a shame to restrict people to the lottery where they live. If you are lucky enough to live in the UK you have access to a sizeable lottery in the National Lottery but in certain countries, Germany for instance, some of the lotteries aren’t very big.

The original idea for the company came from one of the founders who had to drive from Germany to Austria to get a lottery ticket as the Austrian lottery was offering bigger prizes. So what we are trying to do is provide an international offering of lotteries from around the world and give customers access to these lotteries online – it’s lottery tourism.

eGR: Lottoland’s main markets are German-speaking countries but you’ve increased your visibility in the UK of late. How has that been going?

NB: The UK and Sweden are core targets right now and that’s where our marketing budget is currently focused. We recently launched a TV advertising campaign in the UK featuring Chris Tarrant, who fits with our brand well.

The adverts are similar to the bet365 concept – where they change the odds for next goal scorer we show what the biggest jackpot at that moment is, so it’s quite fun. That launched in September so it’s still early days but it seems to be going well so far.

eGR: There is an argument that bet-on-lottery firms don’t clearly distinguish their products from charity lotteries. Is this fair criticism?

NB: That’s a good question. I can’t speak on behalf of other bet on lottery firms, however we feel that we’ve established a clear distinction between bet-on-lottery and other more traditional lottery solutions in the market place. Lottoland ensures a clear and transparent line of communication; it is purely providing a platform for players to bet on the outcome of multiple lottery jackpots around the world.

eGR: You recently launched a B2B service called Lottoland Solutions – what’s the thinking behind this?

NB: If gaming operators want to diversify and compete with other operators and add a new product with relatively little time and effort then a lottery offering will help with customer acquisition which operators can then cross-sell into other products.

We could provide a white label service and operate it for them but I suspect the more attractive end would be risk management and insurance through our ILS rather than operating side of it.

eGR: What does the future look like for Lottoland?

NB: The lottery industry itself is growing right now because we are differentiating and offering a wider choice for consumers to be on a lottery somewhere other than where they live. Because of this growth Lottoland will be focusing on opening in new markets and adding new products, such as gameshow-style casino games through our partnership with Gamevy.

In terms of regulation, I’ve been in enough gaming companies that have been surprised by regulatory changes so we’ll seek to get licences where available. However, while we aren’t complacent, I don’t see any particular regulatory issues or surprises in the next year or two.