Sachsen-Anhalt (Germany)

Version: 18082003

Editor: Franka Pals

Authors: Rob van der Gaast, 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.

Contents

  1. GENERAL INFORMATION
    The jurisdiction
  2. KEY FIGURES
    Population, Currency, Internet
  3. OPERATORS
    1. Lotto-Toto GmbH Sachsen-Anhalt
      1. History
      2. Legislation
      3. German Lotto and Toto Block
      4. World Championship Football in 2006
      5. Sports betting
      6. Key financials
      7. Products
      8. Investment
      9. Financial development of betting products
    2. Casinos

1. General Information

Map of Europe, Sachsen-Anhalt

Sachsen-Anhalt, or in English "Saxony-Anhalt", is surrounded by Brandenburg in the North-East, Sachsen in the South-East, Thüringen in the South and Nieder-sachsen in North-West.

Magdeburg, the Capital of Sachsen-Anhalt, was the cradle of German mechanical engineering. Some 150 years ago, great and powerful factories were built by Krupp, Gruson and Polte, 100 years later Magdeburg was referred to as the "city of heavy mechanical engineering" due to large combines such as SKET, SKL, MAW. After the German Reunification, the combines went through hard times, however this was not the case for the mechanical engineering sector. The use of innovative and state-of-the-art technologies and products such as wind energy plants enabled companies in Magdeburg to establish themselves in national and international markets.

The Börde region surrounding Magdeburg is one of the most fertile stretches of land in Germany. An excellent area for renewable raw materials.

Entrepreneurs are supported in many ways by extensive financial aids and subsidies from the public sector. The European Union, Germany and the Land Saxony-Anhalt, all provide tailor-made support and subsidies for start-up businesses and the extension of company activities.

Sachsen-Anhalt is a country with a very rich history, however the land Sachsen-Anhalt has, in its then form, a short tradition, as it was existing from 1947 till 1952.

The then DDR government split up Sachsen-Anhalt in Halle and Magdeburg. Only after the German reunification in 1990 Sachsen-Anhalt became one of the five new Bundesländer.

The Sachsen-Anhalt area is well known by the Reformation. Martin Luther and Philipp Melanchthon, both Professors of the University in Wittenberg, changed the religious landscape in Germany and in the world, when on October 31, 1517, Luther nailed his 95 Theses to the door of the Schlosskirche, Castle Church, in Wittenberg.

Due to the beautiful Monastery of "Our Lady" and other architectural marvels in Romanesque style, Magdeburg has been lovingly referred to as the "pearl" of the Romanesque Road. Apart from the monastery and various churches, all erected in Romanesque style, the Cathedral of Magdeburg - proud and famous landmark of the city - dominates the historical city centre, embedded in a scenic river landscape, both the river Elbe and the unique floodplains.

2. Key Figures

Key Figures
Population

2 548 911 (2002)
Male: 1 241 832
Female: 1 307 079
(Source: Statistisches Landesamt Sachsen)

Currency EURO (EUR);
1US Dollar = 0.89 Euro
1 Euro (EUR) = 1.13 US Dollar (USD)
(August 16, 2003)
Internet penetration: the lowest of all German States with 37.4%
In national comparison, the use of the Internet in the new German federal states is below average.
Hamburg: 53.5%
Berlin East 52.9%
Schleswig Holstein 51.7%
Berlin West 50,9%
Baden-Wurrtemberg 50.3%
Hessen 49.5%
Rhineland-Palatinate 48.7%
North-Rhine/Westphalia 47.5%
Lower Saxony 46.2%
BAVARIA 45.5%
Bremen
44.8%
Brandenburg 42.7%
Saxony 42.1%
Sachsen-Anhalt 41.8%
Thuringia 39.6%
Mecklenburg-Vorpommern 38.0%
Saxony-Anhalt 37.4%
*Internet use = min. 1 x in the past 12 months (business or private).
Source: Infrascope, 2001/NFO Infratest Incom, 2001.

3.Legislation

3.1 Lotto-Toto GmbH Sachsen-Anhalt

Website: www.sachsen-anhalt-lotto.de

3.1.1 History

The company "Lotto-Toto GmbH Sachsen-Anhalt" (LTSA) was founded in September 1991, with a pay up capital of 6,090,000 DM, all paid up by the Bundesland Sachsen-Anhalt. Legal basis is the Gesellschaftsvertrag (company agreement) of September 26th, 1991, last amended on March 5th, 2003. Since November 1992 the company is a member of the "Deutschen Lotto- und Totoblock" (German Lotto- and Toto Block), the cross border cooperation of the Lotto- and Toto-companies of the 16 German states.

In 1997 the introduction of the Lotto-Online-System started.

3.1.2 Legislation

The "Lotto-Toto GmbH Sachsen-Anhalt" is an under private law owned company and a 100% subsidiary company owned by the State of Sachsen-Anhalt.

Legal regulation for organising sports bettings and lotteries are the law "Gesetz über das Zahlenlotto und über Sportwetten im Land Sachsen-Anhalt (Lotto-Toto-Gesetz)", "Law on the Numberlotto and on Sportsbetting in the State Saxony-Anhalt", and the law "Gesetz über Lotterien und Ausspielungen im Lande Sachsen-Anhalt" (Lotteriegesetz), "Law on lotteries and draws in the State Saxony-Anhalt" which both came into power on April 27th, 1993, last amended on May 17th, 2003. Basis of every wagering contract (Spielvertrag) is the licence of Ministry of the Interior.

On decision of the Parliament of Sachsen-Anhalt the organising of lotteries needs a concession 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

1. the organiser

2. the profit of the operation is exclusively for and should be immediately transferred to good causes supporting public interest or ecclesiastical causes.

3. game plan and total prize sum should be at least 25% of the total lay-in, etc.

The operator has to remit 20% of the sales of lotteries to the State of Sachsen-Anhalt as a concession tax for operating games.

3.1.3 German Lotto- and Toto Block

The LTSA is member of the German Lotto-and Toto Block (Deutschen Lotto- und Toto-block), DLTB. This is a cooperation of all 16 Lottery operators in the 16 German states. Main purpose of this cooperation is the pooling of the stakes, the pay outs to the winners, the common marketing, etc. Every three year there is another Lotto- and Toto company manag- 4 ing/coordinating (Federführung) the Block. From 2001 the Lotto-Toto Sachsen-Anhalt is responsible for the Block's organisation. The press speaker of Lotto-Toto Sachsen-Anhalt and of the Lotto-Block in Germany is Ute Semkat.

3.1.4 World Championship Football in 2006

On January 1st, 2002, the Minister-Presidents of the 16 German states agreed that the Lotto companies of these countries would support financially the organisation of the World Championship Football 2006, to be organised in Germany.

The German Football Federation (DFB) will receive 12% above the fixed turnover of 2001 of all the Oddset betting till 2006. The generated financial needs should be used for cultural aspects surrounding the World Championship, as well as for the (re)construction of the stadiums.

The Law "Gesetz zu dem Staatsvertrag über die Bereitstellung von Mitteln aus den Oddset-Sportwetten für gemeinnützige Zwecke im Zusammenhang mit der Veranstaltung der FIFA Fußball-Weltmeisterschaft Deutschland 2006 (October 1st, 2002)", Law for the State treaty to put at ones disposal of financial means coming from the Oddset-betting for the common use in relation with the organisation of the FIFA World Championship Football in Germany in 2006, makes it possible that from 2002 till 2006 financial means can be set aside to be used for the organisation of the World Championship to be organised in Germany.

From 2002 till 2006 each Lotto and Toto-company sets aside yearly 12,5% over the more lay-in from the 2001 Oddset-betting turnover. This money, which will not be more than 130 million Euro, will be remitted to the DFB (German Football Association).

The turnover 2001 of Oddsetbetting in the separate states is laid down in Euros as follows:

Oddsetbetting Turnover 2001
State
Baden-Württemberg 70,080,968
Bayern 86,021,234
Berlin 17,697,778
Brandenburg 7,124,875
Bremen 4,683,454
Hamburg 21,303,365
Hessen 41,455,211
Mecklenburg-Vorpommern 3,991,510
NiederSachsen-Anhalt 40,071,113
Nordrhein-Westfalen 145,574,733
Rheinland-Pfalz 26,024,381
Saarland 6,312,629
Sachsen-Anhalt 11,864,891
Sachsen-Anhalt-Anhalt 8,073,636
Schleswig-Holstein 17,302,450
Thüringen 5,447,224

3.1.5 Sportsbetting

The Ministry of Interior in consultation with the Ministry of Finance is allowed to issue a license for sportsbetting. This concession is for a limited period of time.

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 Sachsen-Anhalt 20 percent of the total betting revenue (Oddset: 16 percent) as concession fee.

Sportsbetting can only take place via sales points established in the State of Sachsen-Anhalt. Sales points in sports accommodations are not allowed.

3.1.6 Key financials

The turnover of LTSA in 2002 was 185.1 million Euro. The half of the turnover has been paid out as prize money. For the concession fee the state received 20% and the lottery tax was 16 2/3%. Provision for the 'Lotto-Verkaufsstellen', LTSA's sales points, was 7.5%.

LTSA share in the German Lotto- and Totoblock amounted 2.2 %.

In 2002 the concession fee for the state Sachsen-Anhalt was 23 million Euro. Furthermore 32 million Euro Lottery tax have been flown into the State cash. And 15.3 million Euro (25 percent of sales of Spiel 77, Super 6, TeleBingo) were spent for so called good causes in the areas social welfare and projects, arts and culture, national heritage, sport activities and environment protection. With this money 425 projects received help in Sachsen-Anhalt. Also 1.8 million Euro of the Glücksspirale lottery has been donated to non-profit organisations. More than 89 million DM has been paid out as prize money, including 3 prizes of one million and more.

The number of staff in 2002 was circa 95 (2001 - 92).The number of Lotto-shops is nearly 800.

3.1.7 Products

LTSA has the following products:

The Tele-Bingo lottery is a co-production with the lottery companies from the following states:

3.1.8 Investment

The investment volume in 2002 was 427,000 Euro (2001 - 400,000 Euro). 173,000 Euro was used for new software for the Online-systems to be used for Oddset-Top betting. Replacement and expansion of the communication in the office costed 110,000 Euro, of which was 105,000 Eur for hardware.

3.1.9 Financial development of the betting products

Products Lay in

 

(x million Euro) %
Product 2002 (2001) 2002 (2001)
Lotto, Saturday 77.3 (87.7) 41.8 (46.6)
Lotto, Wednesday 29.9 (29.1) 16.2 (15.4)
Spiel 77 25.9 (23.3) 14.0 (12.4)
Super 6 19.8 (17.1) 10.7 (9.1)
Tele-Bingo 8.7 (9.9) 4.7 (5.2)
Oddset-Combi-betting 8.4 (8.1) 4.5 (4.3)
GlücksSpirale 6.3 (7.3) 3.4 (3.9)
Scratchcard 6.7 (3.8) 3.6 (2.0)
Luckyrocket 1.1 (1.1) 0.6 (0.6)
Resultbetting (1,2,x) 0.7 (0.8) 0.4 (0.4)
Selectionbetting 0.3 (0.2) 0.1 (0.1)
Total 185.1 (188.4) 100.0 (100.0)

3.2 Casinos

3.2.1 Legislation

The Casinos Law of the state of Sachsen-Anhalt, "Spielbankgesetz des Landes Sachsen-Anhalt (SpielbG)" came into power at 3 am on May 1st, 2002.

In the Land Sachsen-Anhalt public casinos can be allowed. Casino operators can only be companies according to private law, of which all the shares directly belong to the State.

Permits are issued by Interior Ministry: the Ministry has the right at any moment, with a minimum term of 2 years, to recall the permit.

The casino operator is obliged to remit 80% of the gross lay-in to the State. The Ministry of interior, together with the Ministry of Finance, may decide - when it economically is necessary - to lower the remittance, however that may never be lower than 70%.

The Ministry of Interior is authorised, when any casino has a higher lay-in than 5 million Euro per year, to oblige the casino operator to pay an extra fee, which is not allowed to be higher than 12%.

The casino operator is exempted from all taxes.

The cities where casinos are operating, are getting a remittance from the above mentioned state amounting to a percentage of 20%.

3.2.2 Casinos