Online lottery betting operator Lottoland’s insurance premiums are likely going up after one of its customers hit a €90m jackpot.
On June 1, a Lottoland customer in Berlin identified only as ‘Christina’ hit the jackpot after correctly betting on all five winning numbers in a EuroJackpot lottery draw. The €90m (US$106m) prize dwarfed Lottoland’s previous record payout of €14m in 2016, which also went to a German customer.
Lottoland claims that the payout is the single largest sum ever issued by an online gambling or lottery site and will likely prove a winner for the company’s future marketing strategies. And the best part is, the company isn’t on the hook for the whole sum.
In 2015, Lottoland took out an insurance policy against this type of jackpot scenario via an insurance-linked securities (ILS) scheme it lumped under the banner of Fortuna Insurance. This scheme also helped Lottoland defer the cost of that €14m payout in 2016.