Tipp24 launches US lottery venture
B2B supplier subsidiary Lottovate to target land-based customers yet to embrace online business models
Tipp24 has launched US lotteries venture Lottovate, a B2B platform supplier that will offer lottery operators in the country a digital strategy.
Launched last week, Lottovate has been established to develop and manage digital operations channels for existing lotteries by either targeting firms that have yet to launch online or those which need to optimise current systems.
The firm offers end-to-end channel management, including content and customer lifecycle management, player acquisition, CRM and analytical tools, and has been designed to target what Lottovate considers to be a gap in the US online gaming market.
Zuriñe Sáez de Viteri, managing director at Lottovate, said the lack of online sales registered from lotteries in the US had surprised the firm.
“The growth of ecommerce shows that the market for buying goods and services online and via mobile devices continues to expand, but the lottery world hasn’t typically responded to this demand,” de Viteri said.
The firm will also act as a multi-channel consultancy in the US, developing market projections, strategies and business cases for lottery operators that have yet to launch online but may be considering it.
In May last year Tipp24 announced its intention to target the US and UK markets after becoming frustrated with the relative lack of progress in its native Germany, and subsequently relocated its registered office to London and invested in a recruitment drive that has since seen its headcount more than double.
The rise in operational expenditure has led to the firm reporting several consecutive quarters of profit decline and Tipp24 last month reported a 90% profit collapse, forcing it to revise its EBIT forecast for the full year.