German gaming industry firm JAXX SE has successfully completed part of the process to sell its lottery business. It has been confirmed the divestment process for the €12.5 million is now complete along with comprehensive due diligence investigations that “took much longer than planned”. €8 million of the purchase price is due now, a further €1 million at the end of Q3 2012 before the balance is paid in a six-year fixed interest loan on a quarter by quarter basis. The decision to shed the lottery business is being done so as to focus on the mybet brand that operates in the sports betting, casino and poker markets.
The news follows the awarding of a licence to operate in the German state of Schleswig-Holstein and they are among the first three to receive this privilege. How long the regime in the Northern state will stay intact is anyone’s guess.
Over the weekend Chancellor Angela Merkel’s Christian Democrats had a woeful result in the state elections and it means the Social Democrats have moved closer to forming a coalition. We contacted JAXX SE to see if they had any comment on the election results and at the time of publication hadn’t heard anything back.
There’s of course still the conflicting stance of the other 15 lander to consider. This is moving away from the fact the market is now open and it will take some effort for the door to be slammed back shut. It’s unlikely to see a repeal for some time and it certainly looks as though the gambling industry got through the door just in time.
JAXX also announced a tie up for mybet with the Bundesliga’s newest club SpVgg Greuther Fürth. It will give mybet “TV-relevant” advertising areas on the stadium ad boards as well as a number of other promotional opportunities. Mathias Dahms, management board spokesperson for JAXX, commented: “In mybet, we have an excellent brand that we aim to continue bolstering through a measured approach to sponsorship and well-paced branding measures. Our partnership with the cloverleaf gives us the opportunity of a presence in the Bundesliga through an especially likeable club. With its attractive football and a young, motivated group of players, the team is bound to make its mark on the first division, too.”