Sept. 25 (Bloomberg) -- Lotto24 AG, the online lottery broker spun off from Tipp24 SE, surged in Frankfurt trading after the company became one of the first private operators to gain a permit for state-run lotteries.
Lotto24 rose as much as 17 percent to 3.75 euros, the biggest intraday gain since Sept. 6. The shares traded at 3.60 euros euros as of 12:39 p.m. The stock, which started trading on July 3, initially sold for 2.50 euros each in a rights offer.
The license, which runs for five years, allows Lotto24 to broker state-run lotteries online, according to a statement by the company late yesterday. The permit is valid for all of Germany with the exception of North-Rhine Westphalia, the country’s most populous state, and Schleswig-Holstein.
“This permit is a fundamental precondition for the functioning of our business model,” Frank Schwarz, a spokesman for Lotto24 in Hamburg, said. “We should get online nationwide in 2013, and this is when the business becomes operational and substantial revenue starts coming in.”
Further permits are required to advertise Lotto24’s product range on television, radio, press and Internet across the country, Schwarz said. The company expects to receive these permits by November 2012, he said.
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