TLDR
- Zeal Group has bought UK prize draw operator SevenCanyon in its first move outside Germany.
- CEO Stefan Tweraser says tougher UK rules would actually help Zeal because of its German regulatory experience.
- The deal costs £33.9 million upfront, plus up to £4.8 million more if targets are met.
- SevenCanyon made about £99 million in billings last year, with £30 million in gross gaming revenue.
- SevenCanyon’s founders will leave within six months, replaced by a Zeal insider named Alex Green.
Zeal Group has entered the UK prize draw market for the first time. The German company bought SevenCanyon, a UK-based prize draw operator, this week.
This marks Zeal’s first expansion outside of Germany. The company had hinted at these plans back in March during its FY25 earnings call.
Zeal’s CEO, Dr Stefan Tweraser, spoke about the deal on an investor call on 9 July. He said Zeal’s experience in Germany’s strict regulatory system gives it an edge in the UK.
Why Regulation Matters for Zeal
Tweraser expects UK rules on prize draws to get stricter over time. He said this shift would favor companies like Zeal that already know how to work within tight rules.
“We expect the UK price draw to continue moving towards more formalised rules and higher regulated standards,” he told analysts.
Right now, the UK prize draw sector is not covered by traditional lottery law. Instead, it runs on a voluntary code of conduct that started in May.
SevenCanyon helped create that code. Tweraser called the company one of the main drivers behind it.
The UK prize draw market is large and growing. A April report from Rokker put its annual revenue at £1.3 billion, with about 7.4 million active players.
Industry voices have also pointed to the sector’s light regulation as a plus for new entrants. Jamie Pinner of DrawHouse told iGB in May that prize draws avoid Remote Gaming Duty, making them cheaper to run than sportsbook or casino products.
Tweraser described the SevenCanyon deal as part of a planned growth strategy. He noted the UK market has over 400 operators, calling it fragmented and ready for a professional player like Zeal.
The Financial Details of the Deal
SevenCanyon brought in roughly £99 million in billings last year. Measured by gross gaming revenue, that figure was closer to £30 million.
Zeal’s CFO, Andrea Behrendt, said SevenCanyon is already profitable. She put its EBITDA at more than £10 million for the most recent financial year.
The deal includes a £33.9 million cash payment at closing. An extra £4.8 million could follow if the business hits agreed targets within six months.
Zeal also picked up SevenCanyon’s prize inventory, including cars and cash prizes. To pay for the deal, Zeal took out a €40 million loan from Deutsche Bank over seven years.
Behrendt said this pushed Zeal’s external debt to about €100 million. She added that the company still holds around €70 million in cash after the transaction.
Zeal expects the deal to boost its EBITDA by a high single-digit million-euro amount in the first full year.
SevenCanyon’s founders plan to exit the business within six months. Zeal has already named a replacement leader.
That person is Alex Green, who has worked at Zeal for more than two years and has over two decades of experience in the UK lottery market.
SevenCanyon will keep operating under Zeal’s “business owner” model. This setup lets it run semi-independently while using Zeal’s compliance, finance, and tech support.
