Online lottery betting operator Lottoland has been granted an insurance licence by the Financial Services Commission (FSC) in Gibraltar.
The company described the approval as a “historic milestone” which would transform its risk management into its own fully authorised and licensed insurance company.
“The fact that Lottoland is the first and only company in the gaming sector to have done this, highlights our commitment to industry best practice and transparency,” said CEO Nigel Birrell. “This is huge step forward not just for Lottoland but also for the gaming industry.”
Lottoland has established a new subsidiary, Fortuna Insurance PCC Limited, which will underwrite all the bookmaking risks of Lottoland and its B2B partners. It will be regulated by the FSC in Gibraltar and the European Insurance and Occupational Pension Authority (EIOPA), which will both ensure that Fortuna will be compliant with the European Solvency II regime.
Lottoland’s recently renewed Insurance Linked Security (ILS) jackpot insurance will now be transferred to sit under Fortuna Insurance.
The newly established insurance company will have a board and management team consisting of five executives, who will provide in depth insurance and reinsurance, financial markets, regulatory as well as gaming know-how to the company.
Lottoland said that all its previous investors have shown their confidence by participating in the new transaction, while a handful of new investors have also come on-board.