German lottery operator Zeal Network delivered an impressive report card for the fiscal year 2025, with annual revenue reaching 218 million euros, a 16% increase year-over-year, exceeding the previously expected range of 205 million to 215 million euros. The lottery business contributed 89% of the revenue, also growing by 16%. The company's CEO revealed at the financial report meeting that Zeal has "ample ammunition" and is considering investing in social lotteries and lottery opportunities outside Germany, with more plans to be announced in 2026. In plain terms, the German market is stable, and they are ready to expand internationally. Want to know the latest trends in the European lottery market? PASA's official website keeps track.
Increased marketing investment: Customer acquisition cost rises, but the money is well spent
In 2025, Zeal's marketing expenses increased by 21%, and the CFO stated that in 2026, the investment will continue to grow at a rate higher than revenue growth. This money is well spent—during what is called the "low jackpot environment" of 2025, the lottery business still saw a 7% increase in new registered users to 1.2 million, and monthly active users increased by 8% to 1.6 million. The gaming business saw an even more significant increase of 36% in monthly active users to 30,000. The CFO emphasized that this proves that even in a low jackpot period, Zeal can maintain its customer acquisition capability, and the lottery business's dependence on jackpots is decreasing, becoming more stable. However, due to the low jackpot environment, the cost per customer in the lottery business still rose by 32%.
Lottery business: Monthly draw for a house, unmatched in Germany
When asked about the competition in the domestic German lottery business, the CEO stated that Zeal dominates the "dream house lottery" category, and no competitor can match Zeal's scale, customer acquisition capability, or ability to drive the transition of lotteries from offline to online. The company plans to increase the frequency of its Traumhausverlosung business's house lotteries to one per month. Regarding the review of the German "Interstate Gambling Treaty," Zeal expects no significant changes in the regulatory environment and maintains close contact with the German Federal Gambling Regulatory Authority.
2026 Outlook: Revenue growth up to 19%, continued increased investment
Zeal provides an optimistic guidance for 2026, expecting revenue to be between 250 million to 260 million euros, up to 19% growth from 2025; EBITDA is expected to be between 70 million to 75 million euros, including increased investments for product diversification. Want to know the latest trends in the European gambling market? PASA's official website keeps track.
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