Zeal Network SE expands into UK with majority stake in prize draw operator SevenCanyon
2026-07-09
Source: iGaming Business
Zeal Network SE has acquired a controlling stake in UK prize draw operator SevenCanyon for £33.8 million, entering the British market and positioning itself in a fast-growing, lower-tax vertical with an estimated £1.3 billion in annual revenue.
German lottery brokerage Zeal Network SE has acquired a 96.5% stake in UK prize draw operator SevenCanyon Limited, marking its formal entry into the British market. The deal, announced on Thursday, values the outstanding shares at approximately £33.8 million, subject to post-completion adjustments, with an additional earn-out of up to £4.8 million payable within six months. Financing was secured through a €40 million, seven-year term loan arranged by Deutsche Bank.
Zeal had signalled its ambition to move into new prize draw markets during its FY25 earnings call in March, with CEO Dr Stefan Tweraser noting the company had a “strong war chest” for investments. The vertical has been a strategic focus for Zeal for some time; former CEO Helmut Becker previously highlighted its appeal to younger demographics, saying “there’s an opportunity for more innovation in our industry” and that prize draws can address the needs of those target groups.
Tweraser described SevenCanyon as “one of the most successful prize draw operators in the UK” and said the acquisition lets Zeal “hit the ground running in a highly attractive and growing market.” CFO Andrea Behrendt emphasised SevenCanyon’s profitability, adding that the mainly loan-financed purchase “preserves Zeal’s flexibility for further capital allocation.”
The acquisition is expected to be EBITDA-accretive, with SevenCanyon contributing meaningfully to group revenue and EBITDA post-consolidation. Zeal reaffirmed its 2026 EBITDA guidance of between €70 million and €75 million, assuming a normal German jackpot environment. For FY25, Zeal reported revenue at the upper end of its €205–215 million forecast and EBITDA of €68.8 million, hitting the top of its €63–68 million projection.
In the UK, prize draws currently operate under a voluntary code from the Department for Culture, Media and Sport and are exempt from Remote Gaming Duty. Jamie Pinner of DrawHouse recently noted this makes them “a far more efficient revenue stream than sportsbook or casino products.” A new trade body, the Prize Competition Council, was formed last week to promote responsible standards and player protections. According to a Rokker report, the UK prize draw competition market generates an estimated £1.3 billion in annual revenue and attracts around 7.4 million active players.