Gaming sector first: Lottoland granted insurance licence

Gaming sector first: Lottoland granted insurance licence

Tuesday, September 26, 2017 Posted by Joseph Streeter
Lottoland became the first and only company in the gaming sector to have established its own insurance company

Online lotto betting operator Lottoland has announced that it has been granted an insurance licence by the Financial Services Commission (“FSC”) in Gibraltar.

After being given the licence in accordance with EU insurance legislation, Lottoland became the first and only company in the gaming sector to have established its own insurance company.

This newly established insurance company Fortuna Insurance PCC Limited (“Fortuna Insurance”), is a subsidiary of Lottoland Holdings Limited.

Fortuna Insurance will underwrite all the bookmaking risks of Lottoland and will be regulated by the FSC in Gibraltar and the European Insurance and Occupational Pension Authority (“EIOPA”), which will both ensure that Fortuna Insurance will be compliant with the European Solvency II regime.

The newly established insurance company will have a board and management team consisting of five experts, who will provide in depth insurance and reinsurance, financial markets, regulatory as well as gaming know-how to the company.

Last month, Lottoland announced a second two year ILS transaction, which will now be transferred to sit under Fortuna Insurance. This transaction is fully collateralized through cash trust accounts and letters of credit.
 
Other operators can also benefit from Lottoland’s secure lottery insurance solution thanks to Lottoland’s B2B arm Lottoland Solutions. Lottoland Solutions guarantees pay outs on all winnings now through Fortuna Insurance and offers a lottery betting interface that is easy to integrate into existing websites.

Nigel Birrell, Lottoland CEO, told TotallyGaming.com: “We are extremely proud to have become the first and only company in the gaming sector to have established our own insurance company.

“This historic milestone will give Lottoland better access to the reinsurance markets as well as being a useful marketing tool for us – it’s a strong message for us to be able to say we are a fully licensed insurance company both on the B2B and B2C side.”

Totally Gaming says: This move strengthens the notion that Lottoland is immensely reliable for paying out jackpots and large sums, the risk management strategy of the operator has already been tested by several major wins, including a €22 million and was won by a player from Berlin in 2016.

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