Version: 15012003
Editor: Franka Pals
Publisher: Novamedia
Disclaimer: Novamedia disclaims all liability for information provided within the "Novamedia European Gaming and Lottery Files".The information is supplied by independent journalistic sources. No parts of these files may be reproduced in any form by print, photo print, microfilm or otherwise, or re-distributed electronically in any form without written permission from the publisher.
State Hesse, Hessen for the Germans, has 6 million inhabitants and is the fifth biggest Land (state). It is enclosed by (clockwise from the top) the following states: Niedersachsen, Thüringen, Bayern, Baden-Württemberg, Rheinland-Pfalz and Nordrhein- Westfalen. Wiesbaden is the Capital and the most important city is Frankfurt, the financial center of Germany (and the European Continent). Frankfurt, with a population of 644,000 inhabitants, is further well known by its largest passenger airport on the Continent, the Messe (trade fairs) and Johann Wolfgang von Goethe.
Few people will know (or remember) that the State of Hesse, as it is today, was founded - after World War II - by the American Commander-in-Chief in Europe, General Dwight D. Eisenhower, on September 19, 1945, based on the Proclamation No. 2 of the American military government.
Hesse has a noteworthy famous wine called 'Appelwoi', a sweet and tart apple wine. The local made 'ciders' are not to be despised. Especially when one combines it with Hesse's most famous food: Zweibelküchen, a traditional meal from Hesse, involving a cake made of yeast that is filled with onions and bacon, and then baked. The Grimm brothers, who compiled their world famous stories in Hesse, would have enjoyed such a meal.
In the area where the Rhine touches Hessen's southern limits, the Castles and vineyards are worth visiting.
Four major industrial sectors - chemical manufacturing, automotive and mechanical engineering and electronics - give the state Hesse its strong economy, unrivalled in the rest of Germany. No other German state can match Hessen's Gross Domestic Product (GDP) of 50,000 DM per head. Together with Frankfurt, centre of the state's service sector and TV industry, companies like Hoechst, Degussa and Ruetgers in Frankfurt or Merck in Darmstadt compete on world markets with products ranging from chemicals, pharmaceuticals and paints to production components for the computer industry, not to mention Opel's automobile factory in Ruesselsheim, Volkswagen in Baunatal or the Thyssen Henschel works (machine and railway engineering) in Kassel. The Rhine-Main airport, with around 60,000 employees and ever-increasing capacity, is a prime hub of international air transport in Europe and the region's biggest employer.
The number lotto, in its present form, originates from 'Lotto di Genova'. In Genoa (Genua), Italy, already elections took place in 1620 for the city Senators via a lottery. On the 90 tickets 90 names were written and 5 Senators were drawn by lot. Now it does not look very democratic, however a new pass time was born: the lottery industry.
It was also an Italian, Giovanni Antonio Calzabigi, who was looking for a creative way to reorganize the state finances; therefore he introduced in 1763 the Prussian number lottery in Berlin.
So it is not strange that the Hessian government officials looked desirable to this new financing tool. Lotto organizations were popping up like mushrooms. In the second half of the 18th century lotteries were organized in Wiesbaden, Kassel, Darmstadt and Marburg. On December 16th, 1769, monarch Carl zu Hessen-Nassau launched the first number lottery on Hessian soil. However, in 1780 the 'betting shops' had to close their doors.
In Wiesbaden it took till 1790, before lotteries were forbidden. Finally after 166 years, in 1956, gaming activities could restart in the state of Hessen.
The Lotterie-Treuhandgesellschaft mbH Hessen (LTG) was from January 1st, 1965, the successor of the Staatlichen Sportwetten GmbH Hessen (State sportsbetting) and the Staatlichen Zahlenlotto GmbH (State Lotto) Hessen.
The purpose of the company is the technical operations of the state lotteries, such as Number Lotto, Football toto, ODDSET, Spiel 77 and Super 6 and scratch cards. The operator of those games and lotteries is the Hessische Lotterieverwaltung, HLV, (Hessian Lottery board), set up by 'Finanzministerium des Landes Hessen' (Finance Ministry of the State Hessen), which is also the only partner of LTG. Besides that the LTG is allowed to operate private lotteries under their own label, such as for instance the GlücksSpirale (Lucky spiral).
The Staatlichen Zahlenlotto GmbH Hessen is established in Wiesbaden. In its headquarter there is a staff of 135, of which 75 are working part-time. There are around 2.300 sales points. Weekly 1.2 million gaming slips are processed online in the Wiesbaden office.
The Lotterie-Treuhandgesellschaft mbH Hessen (LTG) was established on January 1st, 1965 as a participating company, by the State of Hessen, with the purpose to operate the State Lotteries, Lotto, Tot, ODDSET, Spiel 77, Super 6 and the Rubbel-Lotterie. The Lotterie-Treuhandgesellschaft mbH Hessen manages for the 'Hessischen Lotterieverwaltung' (HLV) on basis of the 'Gesetzes über staatliche Sportwetten, Zahlenlotterien und Zusatzlotterien in Hessen' (Law on State sportsbetting, number lotteries and powerball lotteries) dated November 3rd, 1998, the 'Zahlenlotto' (number lottery, with draws on Wednesday and Saturday), the Oddset sportsbetting and Football-Toto (result forecast game and selection game), the lotteries 'Spiel (Play) 77' and 'Super 6' and the 'Rubbel-Lottery' (scratch card).
The details between the LTG and HLV are laid down in a management contract dated August 13th, 1996. For their operation LTG receives a management fee in the amount of 106% of the direct operational costs.
Furthermore, it is agreed by the Ministry of Interior and the Ministry of sports that the LTG can operate the private lottery 'Glücks-Spirale' (LuckySpiral).
The LTG is member of the German Lotto and Toto Block (Deutschen Lotto- und Toto-block), DLTB. This is a cooperation of the 16 Lottery operators in the 16 German states. Main purpose of this cooperation is the pooling of the stakes, the payouts to the winners, the common marketing, etc. Every three-year there is another Lotto- and Toto company managing/coordinating (Federführung) the Block. From 2001 the Lotto-Toto Sachsen-Anhalt is responsible for the Block's organisation.
In a close cooperation with the Hessian RTV the LTG organizes for all the German Lottery companies, the Saturday draws for Lotto and Spiel 77.
The LTG is member of the World Lottery Association (WLA) and the European Lotteries (EL).
The 'Gesetz über staatliche Sportwetten, Zahlenlotterien und Zusatzlotterien in Hessen, GVBl. I S. 567, 571', which was last altered on December 17th, 2001, came into power on January 1st, 2002.
The state Hessen has the exclusive rights, within its states boundaries, to operate sports betting. This does not account for betting on horses. Only authorized bookmakers are allowed to organize betting on horses.
Furthermore, the state Hessen operates number lotteries and powerball lotteries. The state government may enlist a third party (legal Person under private law) with the operations.
Half of the total inlay of the sportsbets and number lotteries has to be paid out as prize money. This does not count for fixed winning quotes. For powerball lotteries 25% of the laid in money should be paid out as prize money.
From the total lay-in of the number lotteries and powerball lotteries, has to be distributed to:
From the total laid in money coming from the sportsbets, has to be distributed to:
When there is any surplus the State of Hessen will remit the money to cultural, social and sports organizations.
One risks a two-year imprisonment or a fine, when one, without a license, operates sportsbetting and/or number lottery:
The turnover in 2001 was 21.17 million Euro higher than in 2000: 630.92 million Euro (+3.5%). The personnel costs increased from 21,73 million Euro to 21,94 million. Each inhabitant of Hesse bought in 2001 2.00 Euro per week from LTG. The year before that was: 1.94 Euro. In the whole Bundes Republik the inlay pro capita per week was 1.98 Euro. Per ticket the Hessian players invested 8.27 Euro (8.12 Euro) and in the whole Republic 7.55 Euro. The sales via Internet are just 1% of the total turnover.
In December 2001 21,625 players used the so-called 'XLL-Service' of Lotto Hessen. One can play for a longer period (two months, with automatic prolonging) via automatic bank remittance and prizes are transferred to the bank accounts of the players as well.
| 1997 | 1998 | 1999 | 2000 | 2001 |
|---|---|---|---|---|
| 505.36 | 553.83 | 585.51 | 609.74 | 630.92 |
| Paid out prize money: 310.77 | ||||
Beneficiaries
Taxes/costs
Lotto Saturday Draw and Lotto Wednesday Draw
There was a slight 'drop' of the Lotto on Saturdays of 0.7%. Revenues of the Wednesday version went up 39.2 %. This positive result was caused mainly by equalizing the cost of the tickets (0.77 Euro). And above that the introduction of the rollover Jackpot, which was launched at the end of 2000.
Lotto Saturday Draw in million Euro
| 1997 | 1998 | 1999 | 2000 | 2001 |
|---|---|---|---|---|
| 277.60 | 313.83 | 333.11 | 335.56 | 333.27 |
Lotto Wednesday Draw in million Euro
| 1997 | 1998 | 1999 | 2000 | 2001 |
|---|---|---|---|---|
| 73.62 | 73.01 | 72.35 | 67.50 | 93.98 |
The stakes for the auxiliary lotteries Spiel 77 and Super 6 were raised in order to realize an improved prize structure. Draws on Wednesday and Saturday.
Spiel 77 in million Euro
| 1997 | 1998 | 1999 | 2000 | 2001 |
|---|---|---|---|---|
| 70.97 | 77.09 | 74.85 | 70.77 | 72.65 |
Super 6 in million Euro
| 1997 | 1998 | 1999 | 2000 | 2001 |
|---|---|---|---|---|
| 44.39 | 49.74 | 48.98 | 46.58 | 48.62 |
The mother of all sportsbetting, the toto, is clearly at the end off its life cycle - in whole Europe (1 = hometeam wins; 0 = draw; 2 = away team wins). A 'substitution' is needed. The operational costs will soon balance the receipt. A new, innovative pool product linked to a Jackpot exists.
Result forecast game
| 1997 | 1998 | 1999 | 2000 | 2001 |
|---|---|---|---|---|
| 6.79 | 6.33 | 5.6 | 4.64 | 4.39 |
Out off 45 football matches, 6 matches are selected by a cross. One should forecast the draws.
Selection games
| 1997 | 1998 | 1999 | 2000 | 2001 |
|---|---|---|---|---|
| 4.95 | 5.10 | 4.13 | 3.01 | 3.72 |
From 90 sports matches players can bet on results per week, Daily tips can be 'called'. Matches are for instance: First and Second Bundesliga, other European football leagues, tournaments, championships, Handball, tennis, etc. Fixed betting 'quotes'.
ODDSET was launched on August 17th, 1999. In 2001 there were no European or World Football Championships, the negative effects can be seen immediately. The good result of 2000 (European Football championship organized in The Netherlands and Belgium) 50.20 million Euro, was lowered in 2001 to 41.38 million Euro. 2002 will show a bright result. (World championship football in Japan and South Korea, Germany was finalist!)
or the first time there was a so-called 'ODDSET-Sonderauslosung' (extra special draw) organized at the opening of the new 2000/2002 German football-league (Bundes Liga) season. Daily, with the exclusion of Sundays, a Smart car could be won during the period between July 31st and August 13th, 2001.
ODDSET Kombiwette (in Euro)
| 1999 | 2000 | 2001 |
|---|---|---|
| 18.93 | 45.61 | 41.38 |
After doubling the price of GlücksSpirale to 5.10 Euro in 2000, there was a 12% dive, bringing the revenues of GlücksSpirale at 44,3 million in 2001. The tumbling of GlücksSpirale in the German Lotto- and Tot Block was even greater: 15.2%.
GlücksSpirale
| 1997 | 1998 | 1999 | 2000 | 2001 |
|---|---|---|---|---|
| 15.92 | 16.53 | 16.02 | 25.66 | 22.60 |
Also the Rubbel-Lotterie, and this accounts as well for the whole of Germany , there is a negative trend. The 'Block' saw a downwards movement of 4.8%. The dip for the Hessian Lotto was only 0.8%. The Rubbel-Loterry got a new, cartoony styling. The Monopoly-card of 2000, was revived in 2001 'De Luxe' version. And at the end of the fiscal year 2001 a limited quantity of the 'GlücksRakete' (LuckyRocket) was sold.
Rubbel-Lotterie
| 1997 | 1998 | 1999 | 2000 | 2001 |
|---|---|---|---|---|
| 11.12 | 12.19 | 11.53 | 10.46 | 10.36 |
Lotto Hessen is offering on its website, www.lotto-hessen.de, all kind of information, such as winning numbers, quotes, Jackpot information, etc. Moreover one may sell playing slips via Internet and receive the winning on its own bank account.
The highest paid out prize to a single person in 2001 was a 20-million-mark rollover ('rollierend') Lotto Jackpot.
The new in 2001 introduced motto is: "Lotto. Wer nicht spielt, hat schon verloren" (Whom is not playing, already lost).
In 2001 the new On-line terminals, at 2,170 sales points, haven been installed. This new generation terminals, ELOS e-Channels, with self explaining touch screen techniques, will make life easier for the sales staff.
All bets are stored in the player's personal account at the lottery's computer. And, it does not matter if they are made via an agent terminal, games subscription or the Internet. The contract included installation of a full Internet solution, including payment services.
With the experience LTG has collected through their lottery history and their web site, they had specific requirements on their Internet solution:
The legislation on casinos in the State of Hessen is laid down in the 'Hessisches Spielbankgesetz, Hess.SpielbG, (Hessian Casino Law) and came into power from August 30th, 2001 and will expire the day after December 31st, 2012.
The Hessian Ministry of Interior can give out permits in Bad Homburg v. d. Höhe, in Frankfurt am Main in the tax free area of the airport of Frankfurt , in Kassel and in Wiesbaden for operating a casino. When a Casino in Kassel will be operated, then it will be permitted to start a branch establishment in Bad Wildungen as well.
80% of the revenues have to be remitted to the State Hessen. And the State Hessen has to transfer a certain amount of money to the Municipalities where the Casinos are established. No other Betting- or Lottery tax has to be paid. This accounts also for Income tax and there are neither taxes on assets.
The supervision is in the 'hands' of the Ministry of Interior. Players have to show their ID-card for entering and the management has the legal right to search its visitors. Above that the management has the right to refuse admittance and put them on a black list.
There exists an transitional measure for the permits of the casinos in Bad Homburg v. d. Höhe and Wiesbaden . For these two casinos the law dated on December 19th, 1985, remain in power.