Gibraltar-based lottery betting operator Lottoland has agreed a new two-year agreement for its Insurance Linked Security (ILS) jackpot insurance, which has been increased to €120m.

The agreement marks the third time that the operator has secured the ILS coverage in order to insure itself against major customer wins.

The first €100m ILS transaction was arranged in April 2015 by German investment business inea GmbH through the issuance vehicle Euroguard Insurance Company PCC, and was renewed again in June of last year.

Lottoland said all previous investors had shown their confidence in the bet-on-lotteries business by participating in the new two-year transaction, with new investors also coming on-board.

"Our innovative approach to this market is really paying off," said Lottoland CEO Nigel Birrell. "The ILS provides a fully reliable way to reinsure against big wins and we're delighted to have this second two year agreement in place which we have taken to the next level – the only solution in the industry which has proven fast and reliable pay-out of winnings."

The largest win paid out by Lottoland's ILS so far was €22m last year, with the operator having now returned over €838 in total winnings across its business.

"Let me congratulate Lottoland and its investors for leading the way with the launch of their third successive ILS transaction," said Gibraltar's Minster for Commerce, Albert Isola MP. "Their success to date and their future plans for innovative ILS structures that will be offered to other participants in the gaming community are very exciting.

"The investors' confidence in both the Lottoland transactions and Gibraltar as the domicile of choice is very gratifying."

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