Zeal CEO Dr. Stefan Tweraser stated on 9 July that stricter rules in the UK prize draw sector will support the company's recent entry into the British market. The operator recently acquired SevenCanyon to launch its first international expansion outside of Germany.
Regulatory Standards and Compliance
Tweraser noted that the UK vertical is moving toward formalized rules and higher standards. He argued that this shift favors operators with strong compliance capabilities, citing Zeal's two decades of experience in the heavily regulated German market. SevenCanyon was a primary driver of the voluntary code of conduct introduced in May, which focuses on enhanced player protection.
The UK prize draw market is expanding rapidly and remains highly fragmented with over 400 operators. An April report by Rokker estimated the sector generates £1.3 billion in annual revenue and attracts 7.4 million active players. SevenCanyon reported approximately £99 million in billings last year, generating around £30 million in gross gaming revenue and an EBITDA exceeding £10 million.
Zeal described the acquisition as a strategic move to consolidate a fragmented sector rather than an opportunistic purchase. The vertical currently operates outside traditional lottery regulation, offering tax advantages. DrawHouse senior leader Jamie Pinner highlighted that prize draws are not subject to Remote Gaming Duty, making them a more efficient revenue stream than casino products.
Zeal first hinted at plans to expand its prize draw offering and enter new markets during its FY25 earnings report in March.