Zeal Reports Record H1 Revenue of €121.8 Million

Zeal Network SE, the parent company of prominent brands such as Lotto24, has released its financial results for the first half of 2026, setting new industry benchmarks. Generating total revenue of €121.8 million, the company recorded its strongest six-month period in history. This 20 percent increase compared to the previous year clearly demonstrates that demand for digital lottery products in Germany remains high. Notably, the company has successfully reduced its dependence on the fluctuations of major state-run jackpots.

CEO Dr. Stefan Tweraser attributes this success to a targeted diversification strategy. While the core business of brokering state lotteries like Lotto 6aus49 or Eurojackpot remains stable, proprietary scalable products are gaining massive importance. The company not only increased revenue but also improved operational profitability. Earnings before interest, taxes, depreciation, and amortization (EBITDA) improved by 10 percent to a remarkable €38.9 million. Zeal achieved this despite an environment where acquiring new users is becoming increasingly expensive due to rising media costs.

Numbers and facts

A detailed look at the balance sheet reveals massive growth in the customer base. During the first half of 2026, 659,000 new customers registered on Zeal Group platforms. This represents a 32 percent increase over the previous year and also marks a historical record. Past data shows that this growth comes at a price, with marketing expenses sometimes rising by over 40 percent to remain visible during competitive phases. Nevertheless, the investment appears to be paying off, as customer loyalty for online lottery products is traditionally high.

A key driver for the current record figures is charity lotteries and proprietary products. In addition to the well-known social lottery freiheit+, Zeal has firmly established Traumhausverlosung in the market and recently launched Traumautoverlosung. These products offer players attractive winning opportunities outside of classic million-euro jackpots. For the company, they offer the advantage of higher margins and better marketing predictability, as they do not have to wait for mandatory payouts or extremely high jackpot amounts to generate interest.

"The first-half results confirm that our strategy is delivering: we are continuing to grow our core German business while at the same time diversifying Zeal through our own scalable products." - Dr. Stefan Tweraser, CEO of Zeal Network

Background

The path to current success was not always without obstacles. In the past, high marketing investments weighed on short-term profits. For instance, EBITDA in the first half of 2023 dropped to €13.8 million as the company invested heavily in new customer acquisition. In contrast, profitability in the first half of 2026 is significantly more robust. Previously, the focus was heavily on jackpot phases, leading to fluctuating results. The current strategy aims to buffer this volatility through the aforementioned proprietary products.

Changes in financial leadership also played a role in the strategic realignment. With Sebastian Bielski taking over as CFO from Jonas Mattsson in 2023, financial management was further professionalized. The company has managed to keep acquisition costs per customer (CPO) within a range that allows for sustainable growth despite general inflation in the e-commerce sector. This is particularly important as Zeal operates exclusively in the highly regulated German market, competing against state monopoly structures and private competitors.

Why it matters for German players

For German players, Zeal's success primarily means security and continuity. As a company operating strictly according to the requirements of the 2021 Interstate Treaty on Gambling, Zeal offers a legal and audited environment through brands like Lotto24. Unlike black or gray markets, where there is often no guarantee of winnings, the lotteries and games offered here are licensed by the Joint Gambling Authority of the States (GGL). Player protection is a top priority, which is also reflected in the technical integrations.

Players must be able to rely on compliance with strict limits. This includes the cross-operator deposit limit of €1,000 per month and verification through the LUGAS system. Although Zeal is primarily active in the lottery sector, the strict rules of the German market apply to its supplementary game offerings, including identity verification and the exclusion of banned players via the OASIS database. The fact that a legal provider is achieving such record profits is a sign that the regulated offering is being accepted by customers.

What it means for GGL-licensed casinos

Zeal's success sends an important signal to all operators of GGL-licensed online casinos. It proves that massive growth is possible in Germany with legal gambling products if the brand and product promise are right. The GGL whitelist provides the framework for reputable providers, and Zeal shows that strict regulatory requirements do not have to be an obstacle to economic success. On the contrary: the state license acts as a seal of quality that builds trust among the 659,000 new customers.

Furthermore, the diversification strategy points a way forward for online casinos. Instead of relying solely on classic slots, innovative hybrid products containing lottery-like elements could tap into new target groups. Since Zeal has shown how to minimize dependence on external factors like jackpot heights, licensed casinos should also increasingly focus on exclusive in-house developments that function within the €1 stake limit and other German restrictions.