ZEAL buys remaining Seven Canyon stake and targets UK prize draws market

ZEAL Network completed in July the purchase of the remaining 96.5% of Seven Canyon for £38.6m, consolidating its position in the UK prize draws market. The transaction followed a prior minority stake held by ZEAL in Seven Canyon and leaves the German group with full control of the three brands operated by Seven Canyon: 7days, UKCC and Redline.

ZEAL and the opportunity of prize draws in the UK

Stefan Tweraser, chief executive officer of ZEAL Network, described the United Kingdom as "definitely the largest prize draw market in Europe" during his appearance on EGR's Power Seat podcast. Tweraser said the acquisition responds to a growth opportunity in a market where, in his view, recent regulatory changes may open commercial space.

"We believe it will require a lot of regulatory experience, and that is what we have as a company," Stefan Tweraser said about the need for legal and compliance expertise.

ZEAL already runs initiatives that treat lotteries as entertainment rather than simply ticket sales. From its headquarters in Hamburg, the company has launched a "dream house" raffle and a car raffle, a project that, according to Tweraser, took around six months from conception to launch.

Why the United Kingdom matters for prize draws in the UK

The United Kingdom combines consumer scale, familiarity with prize-draw products and an evolving regulatory environment that includes a new voluntary code of conduct and discussions about VAT changes. Tweraser cited both elements as catalysts for demand for regulatory expertise:

• the new voluntary code that seeks to standardise industry practices

• the possible change in taxation (VAT) that could alter economic models

ZEAL believes its headcount and experience in regulated markets allow it to provide that expertise. The executive said the company sees opportunity both in professionalising the sector and in acquiring players via social formats.

Product approach: selling the dream, not just the ticket

Tweraser, a former Google and Deezer executive, describes ZEAL's approach as treating lotteries and prize draws as "entertainment across the whole customer journey." The aim is to spark the player's imagination from the moment of purchase.

"It's not just about filling in the lottery ticket, it's about starting to dream the moment you do it," Tweraser said.

The concept of a "social currency" was another idea the CEO highlighted: in social gatherings, talking about what you would do with a big prize generates different conversations than simply saying you've played. That kind of social interaction underpins products such as the house raffle and the car raffle.

The acquisition of Seven Canyon and the brands involved

Seven Canyon operates three brands: 7days, UKCC and Redline. Before the full buyout, ZEAL held a small stake in Seven Canyon; in July it paid £38.6m for the remaining 96.5%. The deal gives ZEAL operational and strategic control of the brands in the UK market.

The consolidation allows ZEAL to integrate product, marketing and compliance in a jurisdiction the group considers a priority. Tweraser linked the move to the ability to adapt formats and compliance policies to the UK's new regulatory context.

Regulatory and commercial implications

Tweraser also said the company is watching the German market, online growth, the black market risk and adoption of tools such as artificial intelligence. He added that regulatory experience will be an increasing demand for the sector and a competitive advantage for ZEAL.

In the full Power Seat episode, beyond these observations on prize draws and product, Tweraser discusses online expansion in Germany, black market risk and the application of AI in operations. He also recalled advice he received from Eric Schmidt, former CEO of Google, as one of the best directions given to him during his career.

Episode distribution and background on the format

The conversation aired on Power Seat, the interview series produced by EGR. EGR subscribers get early access to the episode before publication on YouTube, Spotify and Apple. EGR also hosts previous episodes with chief executives from companies such as Betsson, LeoVegas Group, Buzz Bingo and BOYLE Sports in its media hub.

For operators and suppliers interested in the prize draws space, the combination of operational control over UK brands, product experience oriented to entertainment and compliance capability are the elements ZEAL presents as its proposition following the purchase of Seven Canyon.