Version: 12022003
Editor: Franka Pals
Publisher: Novamedia
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The State Brandenburg, in the North-East of Germany, is one of the five so called 'neue Bundesländer' (new federated states), which was shaped on Germany's unification day, October 3rd, 1990. Totally the Bundesrepublik (Federal Republic) has 16 Bundesländer and every state has its own Capital (Potsdam is the Capital of Brandenburg), Government and Legislation. Among these states there are three State-Cities: Berlin, Hamburg and Bremen. Berlin, the Capital of the German Republic, is like an isle embedded in the Brandenburg State. Neighbour states are: Mecklenburg-Vorpommern, Sachsen-Anhalt, Sachsen, Nieder-Sachsen and Poland.
Brandenburg had in 2001 2,593,040 inhabitants (men: 1,280,492; women: 1,312,548; persons per km2: 88). The population of Berlin in 2001 was 2,593,040, of which 1,280,492 men and 1,312,548 women.
The two States, Brandenburg and Berlin, complement each other in many ways. There is the metropolis of Berlin with its booming service sector, universities, research institutions and cultural activities. Around Berlin, the many lakes and fields of Brandenburg, provide a high quality of life and recreational activities. At the same time, the green fields allow for growth in space-intensive industries.
Brandenburg offers the many investment incentives:
Small or medium-sized enterprise (SME), companies with an annual turnover of up to EUR 20.5 million, not more than 250 employees and no single shareholder controlling more than 25% of equity, are eligible to receive grants of up to 50 percent of the total capital investment.
All companies, no matter which size, will receive a one-time grant of up to 35 percent, if they develop, set up, extend, convert or purchase a plant in Brandenburg. In addition, the German federal government provides for a tax allowance of 10-20 percent on specific types of investment in Brandenburg, also available to companies irrespective of size.
Other incentives valid for German or foreign investors are:
Brandenburg has a long history as a Kurort (health Spa), where the rich came to enjoy the revitalizing treatments of the thermal baths and the body massages. Nature, fresh air and rest completed the 'Kur' treatment, which very often took place twice year for a period of four weeks!
The 'Gesetz über öffentliche Lotterien, Ausspielungen und Sportwetten im Land Brandenburg (Lotterie- und Sportwettengesetz-LottGBbg)' is the law on the Public Lotteries, Lotteries with non-money prizes and Sports betting in the state of Brandenburg, which came into power on July 13th, 1994, (GVBl.I/94 S.384) and was altered from June 28th, 2002 (GVBl.I/00 S.90, 98).
The Brandenburg Parliament decided a.o. on the following. For organizing lotteries one needs a license for:
The license is not transferable to a third party, however with permission of the licensee it is allowed that a third party is managing the operations.
A license can only be issued when:
The operator has to remit 20% of the revenue of ticket sales to the State of Brandenburg for operating the lottery concession.
A license can not be issued when:
The value of the smallest prize money can not be less than the value of one ticket. When there is a classification in series, every series should have the same winning chances and the prize winning amount should also be the same in every series. It is the operator's obligations that children under the age of 14 year should not be exposed to sales- or promotion activities for the Lotteries.
The Ministry of Interior Affairs in consultation with the Ministry of Finance is allowed to issue a license for sportsbetting, via a socalled concession. This license is for a limited period of time and is with the proviso that it can be withdrawn. The concession can only be granted when the operating company guarantees a correct management. Fifty percent of the total revenue of laid in betting money should be paid out as prize money. This also accounts for the winning quotes of Oddset.
The operator has to remit to the State of Brandenburg 17.5% of the total betting revenue as concession fee. In certain cases the Ministry of Interior Affairs in consultation with the Ministry of Finance can determine on an altered concession fee. Sportsbetting can only take place via sales points established in the State of Brandenburg. Sales points in sports accommodations are not allowed.
The 'Land Brandenburg Lotto GmbH' (LBL) 4 is an under private law owned company and a 100% subsidiary company owned by the State of Brandenburg. The 'State Brandenburg Lotto GmbH' was established in May 1991. Since November 1992 the LBL is a member of the Deutschen Lotto- und Totoblock (German Lotto- and Toto Block), the cross border co-operation of the Lotoand Toto-companies of the 16 German states.
In 2000 all the licenses for sportsbetting, Oddset, Lotto 6 out off 49, Spiel 77, Super 6 and instant lotteries were prolonged for a 15 year term.
Website: www.lotto-brandenburg.de
The turnover of 'Land Brandenburg Lotto GmbH' in 2001 was 372.5 million DM (190.5 Euro), up 5.4 %. The half of the turnover has been paid out as prize money. For the concession fee the Brandenburg state received 20% and the lottery tax was 16.6%. Provision for the 'Lotto-Verkaufsstellen' (LVS), sales points, was 7.5% (including VAT). To manage LBL 5.9% of the turnover was used.
BLB share in the German Lotto- and Totoblock amounted 2.25 %.
In 2001 the concession fee for the state Brandenburg was 71.2 million DM (36.33 million Euro), which has been remitted to sports-, cultural- and other public goodcauses in Brandenburg. Furthermore 64.2 million DM (32.76 million Euro) Lottery tax and 4 million DM (2.04 million Euro) remittance from the GlücksSpirale, has been flown into the Brandenburg State cash.
From the concession fee, which is 20% of the Lotto sales, according to the law 'Sportförderungsgesetzes' (sports requisition law) 25% goes to sports activities and 64% is remitted to Education and Youth, Culture, Social and Environment good causes. Other good causes projects are assigned by the Ministries. Anyone can nominate a good causes project. One can even find the direct telephone number of the Ministries on LBL's web-site.
More than 180.1 million DM (91.89 million Euro) has been paid out as prize money, including 6 prizes of one million and 55 prizes over 100,000 of which six prizes of a half million.
The Odset sportsbetting, introduced in 2000, was a success in the first full year. The turnover of Odset was 13.9 million DM (7.09 million Euro). In 2002 Odset was enlarged with the new Top-Wette product (betting on the outcome of a single -sportsevents).
The number of staff in 2001 was circa 100. In the same year the number of LVS was 772.
| 2001 TEuro |
2001 TEuro |
2000 TEuro |
|||
|---|---|---|---|---|---|
| Sales Revenue | |||||
| Tickets Sales | 190,067.30 | 180,273.83 | |||
| Income from other activities | 1,283.98 | 196,453.32 | 6,169.74 | ||
| Expenses | |||||
| Paid out prizes | 91,876.73 | 86,512.76 | |||
| Lottery tax | 32,742.24 | 31,073.93 | |||
| Concession Fee | 36,310.20 | 34,129.44 | |||
| GlücksSpirale Remittance | 2,068.06 | 2,793.88 | |||
| Sales Commissions | 14,134.08 | 13,649.18 | |||
| Cost producing tickets | 1,249.44 | 1,287.65 | |||
| Other Expenses | 8,066.53 | 186,447.30 | 7,885.92 | ||
| Personnel Costs | 4,209.54 | 3,761.68 | |||
| Amortization | 1,320.46 | 1,347.65 | |||
| Other Interest | 753.88 | 786.84 | |||
| Interest and similar advantages | 33.57 | 0.51 | |||
| Profit on Ordinary Activities | 5,196.33 | 4,787.81 | |||
| Tax Income, from Net Revenue and Other Taxes | 2,044.85 | 2,255.61 | |||
| Balance | 3,151.48 | 2,532.19 | |||
| Profit Proposition | 38.21 | 164.80 | |||
| Security Fund | 190.31 | 180.10 | |||
| Balance Sheet Profit | 2,999.39 | 2,516.89 |
| Turnover | 1,165,425,745 |
| Concession fee | 208,824,303 |
| Lottery tax | 200,275,445 |
| Paid out prize money | 562,071,980 |
Turnover per year:
Paid out prize money (appr.50 %)
Concession fee (appr. 20%)
Lottery tax (16,6 %)
Laid in money pro capita/pro week
In the year 2001 the Brandenburgers spent Pro Capita 143 DM (73 Euro) on LBL gaming products. In comparison with all the New States, the former East German States, the LBL takes the lead. In the 'Neue Bundesländer' the average spent on State lottery products pro capita is: 134DM (68 Euro). This is 82 DM (42 Euro) lower than in the old States!
LBL has the following product range:
Tickets can be sold till Saturday's 12.30 hrs. The broadcast is on Saturday at 17.30 hrs in the Tele-Bingo show moderated by MDR (MittelDeutschen Rundfunks, Middle German Broadcaster). This leading regional broadcasters is a part of the ARD, one of the two public broadcasters in Germany.
A Tele-Bingo ticket cost 2,50 EUR. * With a sales of 300,000 sold Tele-Bingo-Tickets.
The theoretical Tele-Bingo quotes are*
* With a sales of 300,000 sold Tele-Bingo-Tickets.
** Average winning quotes after 5 weeks.
LBL cooperates, with the exclusion of the Tele-Bingo Lottery and the Instant lotteries, with the German Lotto- and Totoblocks, as laid down in the agreement dated May 22nd, 2000. BLB share in the German Lotto- and Totoblock amounted 2.25 %.
The Tele-Bingo lottery is also a coproduction with the lottery companies from the following states: Berlin, Sachsen, Sachsen-Anhalt and Thüringen.
Saturday Lotto 6 out off 49: 48.0%
Wednesday Lotto 6 out off 49: 15.1%
The main revenues for the LBL are coming from the Lotto products; in total 63.1 % This means in 2001: 235,105 TDM (120,207 TEUR). A plus of 16,320 TDM (8,344 TEUR) + 7.5%.
From June, 2001, the new Internet-Lotto-Spiel-system (ILS) has been introduced, allowing bettors to make a bet via internet. Internet players should register themselves to receive their personal entry data, including a players number and a bankaccount nr.
The LBL founded a strategic cooperation with the German 'Deutsche KlassenLotterie Berlin and the ITC aspects are realized by the German Telecom AG. In 2003 Anybet.com GmbH, based in Hamburg and Kiel, will be replacing LBL's current internet platform with the any-bet.com system.
In addition to providing the rights for the use of the any-bet Gaming Platform, anybet.com will be carrying out the customization of the platform to the requirements of Lotto Brandenburg and will be participating long-term in the tips and wagers through turnover-dependant commissions.
The aGP enables the procurement of gaming products particularly lotteries and betting games through the internet and other online media.
LBL has a participation in:
The other shareholder of the BSB is the Investing Bank of the State Brandenburg. The two casinos in Potsdam and Cottbus have a license till December 31st, 2011.
Cottbus Casino, Joker Place, (www.spielbank-cottbus.de) had in 2001 a players' revenue of 8,741 TDM (2000: 8,153 TDM). From June 2001 there was a raise from 75% to 80% tax to be paid to the State. Thereforethe balanced profit in 2001 was only 47 TDM. The average staff was 17.
In January 2002 the first complete casino in Land Brandenburg (www.spielbank-potsdam.com) in Potsdam was opened: Joker's Garden'. The investment for the renovation of the building, dating from 1748, was 12,800 TDM. Some 25 staff is involved in running the casino in Potsdam. The opening times for the 'gaming and VLT's is daily from 13.00 till 03.00 hrs. The French Roulette, German Roulette and BlackJack may be played daily from 15.00 to 03.00 hrs.
The law 'Gesetz über die Zulassung öffentlicher Spielbanken im Land Brandenburg (Spielbankgesetz SpielbG)', law on admission of the public casinos in the State of Brandenburg, came into force on July 1st, 2000. Paragraph one is on the admission of casinos. Only three casinos are allowed and above that two branches for gaming and VLT's Arcades are allowed.
The License can be given out by the Ministry of the Interior Affairs of the State Brandenburg. The casinos should be located in the City (or in the vicinity) of Potsdam,
Frankfurt (on the river Oder) and Cottbuss. The term of the license is 10 years and can be prolonged for at least 5 years. The license can only given out to a HmbG Company from the Land of Brandenburg. The State is not allowed to take shares in the casino companies.
Paragraph four is on the taxation. The management of the casino has the obligation to make a remittance to the State of
Brandenburg, which is 80% of the Brute players' revenue. The first year, however, the percentage of the remittance to the State of Brandenburg is 65%, the following year 70 and the third year 74. The owning company has to pay no other Casino related taxes.
The surveillance on the casinos has to be met by the Ministry of Interior Affairs in cooperation with the Ministry of Finance. Players have to be over 18.
Until now no license has been given out for the Casino in Frankfurt Am Oder.