Zeal Network to Purchase UK Prize Draw Operator for £33.8 Million

Lottery brokerage Zeal Network has agreed to purchase the remaining 96.5% of shares it does not already own in UK prize draw operator SevenCanyon Limited for approximately £33.8 million, giving Zeal fast-track entry into the UK market.

SevenCanyon operates a number of UK prize draw platforms, including 7days Performance, Redline Competitions and UK Carp Competitions. These platforms offer digital prize draws, which players can enter to win non-cash prizes such as houses, cars and lifestyle products. In the 2025/26 financial year, SevenCanyon generated EBITDA of more than £10 million.

Dr. Stefan Tweraser, CEO of Zeal Network, said: “SevenCanyon is one of the most successful prize draw operators in the UK – we have known them for years. With the acquisition, we hit the ground running in a highly attractive and growing market. We also accelerate the implementation of our strategy to selectively diversify our business model through new products and new markets.”

Zeal Network has around 1.5 million active customers, and employs approximately 300 people across three locations. Zeal operates Lotto24 and Tipp24, which are both online providers for state-licensed operators, and also operates or hosts specialised charity lotteries.

Zeal said it expects the UK prize draw market to continue to move towards more formalised rules and that the acquisition of SevenCanyon could lead to further scaling of the UK business. An earnout payment of £4.8 million will be paid across a period of six months after completion of the acquisition.

Financing of the deal

Funding for the deal was secured with a €40 million loan term arranged by Deutsche Bank with a duration of seven years, covering the entire acquisition cost. For the first full financial year following completion of the transaction, Zeal expects this to have a positive impact on its EBITDA in the high-single-digit millions of euros. Zeal reaffirmed its overall EBITDA guidance of €70 million – 75 million (£59.7 million - £64 million).

Andrea Behrendt, Zeal Network CFO, said: “SevenCanyon is a highly profitable company with a proven business model. The purchase price will mainly be financed through a new loan agreement. This preserves our financial flexibility to continue our growth-oriented and shareholder-friendly capital allocation in the future.”

UK prize draw overview

The prize draw market in the UK is currently governed by the Voluntary Code of Good Practice for Prize Draw Operators. Prize draws do not require a license under the Gambling Act 2005, as they offer a free entry route. The code was introduced by the Department for Culture, Media and Sport (DCMS) in May.

In 2023, the DCMS commissioned independent research into the prize draw sector, which found the UK market is worth £1.3 billion annually, with 7.4 million adult participants and more than 400 operators.

A report published by the Gambling Commission in January showed an 80% majority of players who spend money on free draws and prize competitions are also participating in other gambling activities. Operators should sign up to the code when they offer both a free entry route and a competition that relies on skill, judgement or knowledge by the participants.

The British regulator’s data showed four in five respondents who had spent money on a free prize draw or competition in the past four weeks had also participated in other gambling activities within that timeframe. A total of 22% of respondents had engaged in one gambling activity, while 25% had participated in two gambling activities.

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