In accordance with European Union insurance legislation, Gibraltar’s Financial Services Commission (FSC) has granted online lotto betting operator Lottoland an insurance licence.
The licence allows Lottoland to establish Fortuna Insurance PCC Limited (Fortuna Insurance), making the betting operator the first company in the gaming sector to have established its own insurance firm. Regulated by the FSC in Gibraltar and the European Insurance and Occupational Pension Authority, the subsidiary will underwrite all the bookmaking risks of Lottoland.
“This is a historic milestone for Lottoland – transforming its industry leading risk management into its own fully authorised and licensed insurance company,” said the betting operator when it announced the establishment of Fortuna Insurance.
It explained: “Lottoland’s (re)insurance structure, which combines both risk carrying markets (i) insurance linked securities (ILS) and (ii) traditional (re)insurance), consists of the highest coverage in the market for the underlying gaming business (namely, lotto betting).”
Active in more than 10 markets, Lottoland is licensed and regulated by the Government of Gibraltar, the UK Gambling Commission, the Republic of Ireland National Excise License Office, and the Northern Territory’s Racing Commission in Australia. It has over six million customers worldwide and employs more than 350 people.
“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,” commented Lottoland chief executive Nigel Birrell. “This is huge step forward not just for Lottoland but also for the gaming industry.”
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