JAXX plans to sell off its lottery business

A corresponding provisional agreement was signed between the Management Board of JAXX SE and the group of investors.

The lottery operations, which comprise the companies JAXX (Hamburg), JAXX (Lustenau, Austria), Vendo Spielsysteme (Lustenau, Austria), fluxx.com Telewette (Hamburg), JAXX UK (London, GB) as well as certain assets of other group companies, are to be sold to the group of investors with economic effect from January 1, 2012. The transaction is to be completed by the end of February 2012.

The sale also includes the JAXX domains, JAXX brands and rights relating to the name JAXX, though the change in the name of the disposing parent company JAXX SE is subject to the approval of its Shareholders' Meeting. Spanish lottery business, which is operated by the 70 percent owned subsidiary DIGIDIS, Madrid, is not part of the transaction.

To ensure the smooth handover of business operations, various services such as payments, customer service and IT support will continue to be provided by companies that are part of the group. JAXX SE will thus still share in the future business development of lottery products.

The decision to sell off lottery agency business is based on the group's desire to focus on the business areas of sports betting, casino and poker, which are largely carried by the myBet brand.

“The disposal of lottery business is the logical consequence of our decision to focus on betting business and the myBet brand, which we took at the end of 2010,' explained Mathias Dahms, Management Board spokesman of JAXX SE. 'The opening up of markets throughout Europe offers us excellent growth opportunities - above all for sports betting in Germany. On the other hand the lottery market will continue to struggle for as long as the state maintains its monopoly.”