Lottoland Looking To Break Lottery Monopoly In Germany
The Gibraltar based online private lottery provider Lottoland is ramping up its expansion plans. As we reported previously they are already involved in ongoing legal battles with Camelot who see them as a serious threat to their operations. Lottoland was launched only in 2013 but has succeed in making themselves a serious force in the online lottery market. Last year saw them generate €300m and they have 5 million global customers in over 12 markets.
Their latest plans extend to the lucrative Germany market where they filed an application to have their own lottery in several German federal states. The game principle resembles the German lottery classic “Lotto 6aus49” or the European multi-state lottery, Euro jackpot.
Spokesman for Lottoland, Dr. Rolf Stypmann commented on the move,” With more than five million customers, we understand what lottery players worldwide are looking for. Now we want extend our offering even further and set up our own lottery in Germany. “If we were to receive permission from a federal state authority, Lottoland would be the first private lottery company offering a ‘major lottery’ (a lottery with 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.”
He went on to say that they were excited at the prospect of the outcome of the application. At the very least they would want to be informed of the requirements for such a license. He believes companies like Lottoland are capable of handling lotteries at the level of state lotteries.
Currently the German State Lottery Association generates around €7.3 billion in annual revenues. Of that about 40 percent goes directly to finance ministers of each state. The assignment of the money is independently decided by individual states. To get an idea of just how big the lottery is in Germany, the public sports better supplier Oddset generated only around €186 million in annual revenues.
According to Stypmann the revenues generated are the main reason why the federal states have an interest in maintaining a monopoly and are slowing down any progress.