Zeal CEO sees tighter UK prize draw rules as competitive edge after SevenCanyon buy
2026-07-14
Zeal CEO Dr Stefan Tweraser argues that tighter UK prize draw regulation will benefit Zeal's entry after acquiring SevenCanyon for £33.9M plus earn-out, leveraging its German regulatory experience, as the UK market (estimated £1.3B, 7.4M players) remains lightly regulated but shifting toward formal rules.
Zeal Network's chief executive, Dr Stefan Tweraser, has told analysts that growing regulatory oversight of the UK prize draw market will favour operators with a track record of compliance, positioning the German-based group to capitalise on its recent acquisition of SevenCanyon.
Regulation advantage
Speaking on an investor call on 9 July, Tweraser said he expects the UK prize draw sector to move toward “more formalised rules and higher regulated standards”. Zeal, which has operated for two decades in Germany’s tightly controlled lottery environment, sees this shift as a strategic tailwind. “Rising standards favour operators with a strong compliance capability and market-related expertise,” he added.
Currently, UK prize draws are not subject to the same regulations as lotteries. Instead, the sector follows a voluntary code of conduct introduced in May that focuses on player protection. Tweraser noted that SevenCanyon was a key architect of that code, describing it as “one of the big proponents and big drivers” of the initiative.
Market and deal details
The acquisition, announced earlier this week, marks Zeal’s first international expansion. Tweraser characterised the UK prize draw market as fast-growing, worth an estimated £1.3 billion in annual revenue and attracting about 7.4 million active players according to an April Rokker report. With more than 400 operators, he described it as “highly fragmented” and therefore “a prime market for us to enter as a professional player”.
SevenCanyon generated roughly £99 million in billings last year, with gross gaming revenue of approximately £30 million. CFO Andrea Behrendt said the business is “already a scaled, profitable and cash generating business” that posted an EBITDA of more than £10 million in its most recent financial year.
Financial structure
The consideration includes £33.9 million in cash at closing plus an earn-out of up to £4.8 million, contingent on meeting agreed performance targets within six months. The deal also includes SevenCanyon’s prize inventory of cars and cash. Zeal financed the acquisition with a €40 million, seven-year loan from Deutsche Bank and a smaller intercompany loan. Behrendt said the transaction raised Zeal’s external debt to roughly €100 million but left the company with “still very meaningful” cash, estimated at around €70 million post-transaction. The company projects that the addition of SevenCanyon will lift group EBITDA into the high single-digit million-euro range within the first full year of ownership.
Leadership and integration
SevenCanyon’s founders are expected to leave the business within six months of closing. Zeal has appointed Alex Green, who has been with the company for more than two years and has over two decades of experience in the UK lottery market, as the successor. Tweraser highlighted Green’s “very strong track record in the UK market”. The acquired business will operate as a semi-autonomous unit under Zeal’s “business owner” model, which aims to preserve entrepreneurial culture while drawing on the parent company’s shared compliance, finance, and technology resources.