German lottery monopoly gets challenged

A company wants to become the first private firm to operate a lottery in Germany.

Germany.- Lottoland, a Gibraltar-based online lottery, has filed an application to become the first private firm to have a service in several German federal states. Last year the company obtained licenses from Ireland, Australia and the UK.

Lottoland affirmed that the German State Lottery Association generates almost US$8 billion in revenue annually, and 40 percent of those profits go directly to the finance ministers of the states, and that money is used as every state wishes. Spokesman for Lottoland Dr. Rolf Stypmann, said that these numbers demonstrate why the federal states have an interest in maintaining the public lottery monopoly and refuse any kind of progress.

“For them, too much money is at stake, especially in comparison to sport bets. In February, the German State Lottery Association called on private sport bets suppliers to agree on mutual standards for a strictly-controlled opening of the sport betting market. No comparable measures have been taken concerning the lottery sector which is less at risk of manipulation and less dangerous. We see this is as absurd,” he said.

Stypmann believes that if Lottoland was to receive permission from a federal state authority, it would be the first private lottery company offering high jackpots in Germany. “Lottoland would set up the game plan, have the draw handled by a neutral authority under public supervision, and would allow the jackpot pool to be distributed according to a pre-set game plan. Customers would be able to collect their lottery ticket at selected collection points and lottery terminals, as well via internet.”