Version: 17102003
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.
The neighbors of Sachsen (Saxony) are in the North Sachsen-Anhalt (Saxony-Anhalt) and Brandenburg, in the East Poland and Slovakia and in the South is touching Bayern (Bavaria). The Capital is Dresden.
The deficit in the Free State of Saxony per capita in 2002 is EUR 2,446 per resident, the lowest among the eastern German states (excluding Berlin), with EUR 4,525, and after Bavaria (EUR 1,552) the second lowest of all German states.
The investment rate of Saxony’s budget in 2002 was 26.3% (preliminary figure), the highest rate of all German states.
Within the service industry, tourism is especially important to the economy of Saxony. There were significant losses in 2002, partially due to the extreme effects of August’s historic flooding. In 2002 there were 4.8 million arrivals and 13.5 million overnight stays in Saxony, a decrease of 7% (both in arrivals and overnight stays) compared to 2001.
The Free State Saxony has a settlement structure, which is especially advantageous for the development of new industries and business. There is traditional agglomeration of industry jobs and service facilities in the three main metropolitan areas of Dresden, Leipzig and Chemnitz with a high population density.
Saxony has a varied higher-education landscape, with 4 state universities, the International Graduate School Zittau, 5 specialized colleges for technology and business, 2 specialized colleges for administration and police, 5 state art colleges, as well as 1 private university, 5 private advanced technical colleges and 2 private art colleges. Moreover, seven locations offer a degree from a university of cooperative education, where a three-year program offers a business-related and practically oriented education at the state academy and in the institutions of the program’s partners.
In 2002, about 34% of all patent applications in the eastern German states were in Saxony and in the Free State there are 21 technology business incubators, in which 642 small businesses, with 3,957 employees, have settled. Above that approximately 42% of research and development personnel in the eastern states and eastern Berlin in 2001 were employed in Saxony.
In an economic world characterized by globalization, companies are able to survive only if they can develop innovative products and processes on an ongoing basis. Industrial research potential is the key to competitiveness and prosperity. Since 1994, the research potential of the Saxon industrial and service sectors has increased by 5% annually, with a current total of 11,496 persons employed in R&D positions in Saxon companies. (Sources: EuroNorm GmbH, 2001; Federal Ministry of Education and Research, "Facts and Figures Report on Research 2002").
And for the people who want to start their own lottery company (see also underneath) in Sachsen, we may inform you that at its meeting on May 28th, 2003, the Supervisory Board of Sachsen LandesBank (Sachsen State Bank) gave the green light to set up a Mezzanine fund. The investment company, which is active exclusively in Germany, will provide Mezza-nine-capital for SMEs. These companies, with a transaction volume ranging between Euro 10 million and 250 million, are seeking to expand or to optimize the structure of the balance sheet or undergo a change of shareholders. Being an alternative to direct investment, this combination of equity capital and debt capital is especially provided for established SMEs. Business operations are planned to be launched at the end of 2003.
Concerning this new fund, which is operated by an independent management company, Sachsen LB acts as "cornerstone-investor" and will offer Euro 40 million for the fund’s launch. The fund remains open for further investors. The "German Mezzanine-fund for SMEs" ("Deutscher Mittelstands-Mezzanine-Fonds"), which is the working title of the fund, is designed to achieve a capital expenditure up to Euro 100 million. So, financing a new lottery in Sachsen should be a mere fleabite, with those investing possibilities. Keep on reading and you will find out how to tackle the legislation problem, as well.
Sachsen LB is the youngest German regional bank - yet curiously it is also the one with the longest history! The first giro centre association was founded in Saxony back in 1908. One year later it was followed by the first German central giro institution. And it was these central giro institutions, which later became regional banks.
Nevertheless, Sachsen LB is the youngest of the 12 regional banks. It was only founded in 1992 - "not in order to reinvent the wheel, but to get it moving again", in the words of CEO Dr. Michael Weiss at the end of 1992.
Following the Peaceful Revolution in 1989 and German reunification on 3 October 1990, it was by no means clear that the newly founded federal states in eastern Germany would set up their own regional banks. Saxony wanted to see the creation of a regional bank for all five federal states, yet ultimately was the only state, which set up a new, independent financial institution.
According to the debate in the regional parliament surrounding the foundation of Sachsen LB in 1991, at that time the aim was, "to create not only permanent, secure jobs but also a significant financial instrument which would be of importance for the future of Saxony."
The legislative process in Sachsen is unique and when the people of Sachsen are not happy with their gambling legislation, they can do something about it: Lawmaking by the people! Start your own lottery!
Members of parliament (at least six), the various parliamentary groups, the Land government or the people by a 'people’s motion’, are entitled to introduce a bill to the parliament. The President sees to it that the bill is printed, forwarded to all MPs, and included in the agenda of a plenary session. The person who brought the bill in introduces it to the members; at the time of the first reading, the bill is discussed only if this is recommended by the presidium. In this case, only the basic principles will be discussed. The State Parliament passes the bill on to one or more committees. If so, the committee will discuss it and suggest amendments. The report to be drawn up by the committee will recommend the parliament either to pass the original or amended bill, or throw it out. In the second and third readings, the bill will be discussed and decided on. In case it is passed, the President of the Land parliament submits the bill to the Prime Minister and other relevant ministers for countersigning. Finally, the law is signed and is then passed on to the state government for promulgation in the Saxon Bulletin of Laws and Ordinances.
While it was the prime concern of the first election period to enact legislation for a newly established federal state, the second election period was primarily characterized by amending the existing laws.
The people’s legislation in Saxony is a three-stage procedure. The 'People’s Bill’ must bear the signatures of at least 40,000 citizens who are eligible to vote in elections, and it must be accompanied by a proposed law and written reasons. It must be submitted to the President of the State Parliament (cf. Art. 71 of the Saxon Constitution for further details). If the President declares it admissible, it is treated like any other bill.
At the first reading, the bill is usually passed to a committee to deal with. At the second reading, general discussion takes place. After the third reading (if required), the final vote is taken. Once passed, the new law is signed and promulgated. It then comes into force.
If the People’s Bill is rejected, the applicants can seek to submit a People’s Petition with the aim of bringing about a Referendum on the bill. At least 450,000 eligible voters must support the People’s Petition by adding their signatures.
If the People’s petition is successful, a Referendum takes place. The bill is approved in the Referendum if there are more yes than no votes. So get 450,000 Sachsen friends together and start your own lottery, lotto, toto, horserace betting, (i-)casino, etc. Long lives the Free State of Sachsen.
This involvement of citizens in Land policy making has a long tradition in Saxony. In the Electorate and later Kingdom of Saxony already representatives of the middle classes and lower nobility exercised political influence on the decisions of the ruling house through the assembly of the "estates of the country."
In the year 1830 there was a restriction of the governmental power of the King, which had been largely absolute before. The middle classes won constitutional rights, which was to provide them with larger political influence. The old estates in which the nobility had the predominance were replaced by a new state representation that took greater account of the bourgeois demands.
With the Saxon Constitution of 4 September 1831 laid down in writing an elected parliament was for the first time granted the right to pass laws which meant that the king was noticeably restricted in his governmental power and disposal of state property. The very name of the new parliament showed that it was rooted in tradition because it was called "assembly of the representatives of the estates" which comprised two chambers.
In the course of the November revolution in Germany at the end of World War One (1918), workers’ and soldiers’ councils were established also in Saxony on 8 and 9 November 1918. They took over legislative and executive power and proclaimed the Republic of Saxony on 10 November. After that the last Saxon king Friedrich August III. gave up the throne on 13 November 1918. The end of the monarchy had now also come for Saxony.
On 25 February 1919 the newly elected parliament was convened, which called itself "people’s chamber". It adopted the preliminary basic law for the Free State of Saxony, which meant that the initially chosen name of the "Republic of Saxony" was abandoned.
The first freely elected Saxon parliament, the new Land parliament, finally constituted itself on 7 December 1920. This was the end of the people’s chamber after it had adopted the constitution of the Free State of Saxony on 1 November.
The parliamentary democracy in Saxony newly established in 1919 was eliminated in 1933 already by Hitler’s assumption of office and the autocratic rule of the NSDAP. The law on forcing the Laender into conformity with the Reich dated 31 March 1933 led to the dissolution of all Land parliaments. In the "Third Reich" there was no place for parliaments and bodies of real co-determination.
When the "Third Reich" suffered the military collapse and perished with the burden of gravest moral guilt twelve years later in World War Two, which had been started by it, there were hopes coming up for a new beginning also in the Saxon state policy. On 9 July 1945 the Soviet occupying power established a "Federal State of Saxony" with a Soviet military administration and a German state administration of Saxony.
In June 1946 the Soviet military administration appointed an "advisory assembly" of the state administration as a preliminary stage for an elected parliament, which however met twice only. The Land parliament election of 20 October 1946 set up a Land parliament for the first time since 1933 again.
The new constitution of the state of Saxony was adopted on 28 February 1947. It was strongly marked by Socialist characteristics and already provided for the incorporation of Saxony in a future German Democratic Republic (GDR) but did no longer comprise the term "federal state".
The five Laender of the GDR were factually dissolved. Instead, 14 districts were established. In 1968 the Laender were also formally cancelled from the GDR constitution.
The peaceful revolution in autumn 1989 paved the way for a constitutional state based on parliamentary democracy and a policy in the interests of major and liberally thinking citizens. Shouting "We are the people", the citizens in the East of Germany recovered their power of speech after more than half a century of national socialist and communist dictatorship. The old undemocratic system had to yield to the people’s joint will for reorganization and recognition of the constitutional liberties.
In the wake of the reunification of Germany on 3 October 1990 there were elections for the Saxon Land parliament on 14 October for the first time after a 38-year interruption of the activity of the parliament. On 27 October 1990 the Saxon Land parliament met for its first session. Among the items dealt with in the constituting meeting was the resolution on the preliminary rules of procedure, the passing of the law on establishing the working capability of the Saxon Land parliament and the Saxon government, the election of the President of the Land parliament and the election and swearing in of the prime minister.
On 26 May the members of the 1st Saxon Land parliament passed the new Saxon constitution. The now fourth state constitution - the first one of the new German Laender - is a direct consequence of the peaceful revolution, the unification of Germany and the reestablishment of Saxony as a Land.
History
The history of the lottery in Sachsen has been described in a magnificent and scientific way in 'Lotterien in Sachsen’ by Ulf Molzahn, on the occasion of the commemoration of the 285th anniversary of the lottery of Sachsen (1998).
The first Numberlottery, which took place parallel with the development of the Lottery with product prizes to money prizes, was organized in Berlin in 1713 and till 1745 there were several initiatives to start a lottery. A new project was started by the 'Geheime Finanzrat’ (Secret Finance board) Calzabiri who obtained a patent for the Royal Prussian Lottery, which was launched on February 8th, 1763, in Leipzig. After a public debate concerning the morality of lotteries, it was decided around 1780 to forbid all lotteries. Breach of this ruling was punished by financial penalties.
The Class lottery (Klassenlotterie) with financial prizes started in around 1600 in the surroundings of Amsterdam, The Netherlands. The first Class lottery in Germany took place in Leipzig in 1697.
Around 1900 there were 8 state lotteries: the Königlich Preusssiche, the Königlich Sächsische, the Grossherzöglich Mecklenburg-Schwerinische, the Herzöglich Braunschweigisch-Lünenburgische, the Hamburger, the Lübecker, the Thüringisch-Anhaltinische and the Gross-herzoglich Hessische Staatslotterie.
The Glükstöpfe (lucky pot) is the oldest trail of a lottery product in Sachsen, Leipzig (1498).
The Sächsische Lotto-GmbH is established in October, 1990, by the merger of the then Lotto-Bezirksverwaltungen (regional administrations) Chemnitz, Dresden and Leipzig. This company is responsible for the operating of the Free State Saxony’s State lotteries and sports betting. The seat of the company is in Leipzig.
Since October 1992 the Sächsische Lotto- GmbH is member of the German Lotto and Totoblock.
| Population | 4,349,059 (December 31st, 2002); 6th largest German federal state and the most populous eastern German state. The Saxons’ average age is 35, a year younger than the population in the new East German federal states as a whole, and no less than three years younger than in the old federal states of West Germany.
*Basic Economic Data for the Free State of Saxony. |
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|---|---|---|---|---|
| StateArea German (English) | (km2) | (millions) | rank | |
| Baden-Württemberg (Baden-Wurttemberg) | 35,751 | 10.0 | (3) | |
| Freistaat Bayern (Free State Bavaria) | 70,553 | 11.6 | (2) | |
| Berlin | 889 | 3.45 | (8) | |
| Brandenburg | 29,053 | 2.67 | (11) | |
| Freie Hansestadt Bremen (Bremen) | 404 | 0.68 | (16) | |
| Freie und Hansestadt Hamburg (Hamburg) | 755 | 1.69 | (14) | |
| Hessen (Hesse) | 21,114 | 5.9 | (5) | |
Mecklenburg-Vorpommern (Mecklenburg-West Pomerania) |
23,170 | 1.85 | (13) | |
Niedersachsen (Lower Saxony) |
47.343 | 7.48 | (4) | |
Nordrhein-Westfalen (NRW) (North Rhine-Westphalia) |
34,070 | 17.69 | (1) | |
Rheinland-Pfalz (Rhineland-Palatinate) |
19,846 | 3.88 | (7) | |
Sachsen |
2,570 | 1.08 | (15) | |
Freistaat Sachsen (Saxony) |
18,338 | 4.6 | (6) | |
Sachsen-Anhalt (Saxony -Anhalt) |
20,443 | 2.8 | (9) | |
Schleswig-Holstein |
15,731 | 2.7 | (10) | |
Freistaat Thüringen (Thuringia) |
16.251 | 2.54 | (12) | |
| Currency | EURO (EUR); 1US Dollar = 0.86 Euro 1 Euro (EUR) = 1.17 US Dollar (USD) (October 15, 2003 ) |
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| GPD | Economic strength* Saxony has the greatest economic potential among eastern German states, excluding Berlin, with a GDP in 2002 is EUR 75.8 billion (32%). Real Growth of GDP in 2002 is 0.1% in Saxony, or above the average in eastern German states, excluding Berlin, (-0.2%), just under the German national average of 0.2% (western states: 0.3%). |
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| Internet | Penetration: 42.1% Germany: Internet use* by states in %, November/December 2001 |
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| 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 | 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. |
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According to § 284 StGB (Criminal Code) it is forbidden to organize a public game of chance without permission. This also accounts for, according to § 287 StGB, for draws and lotteries and having the means to organize that. Above that, according to § 285 StGB also participating in game of chances without a license is punishable.
The Saxony’s Interior Ministry is responsible for the license of the lottery Glücks-Spirale and the Sächsischen Staatsministerium der Finanzen, Saxony State ministry of finance issues the permits for all the other lotteries and betting.
The Free State of Saxony operates on basis of the law on the State Lotteries and betting (Staatslotteriegesetz) in the version of October 21st,1998, (SächsGVBl. S. 598) and the latest changes dating from March 12th, 2002 (SächsGVBl. S. 111) according to Internet participation including special conditions for system gaming via Internet.
The Free State of Saxony, represented by the Saxony State Ministry of Finance, is responsible for the organization of the lotteries.
The company organizes these lotteries commonly with other German Lotto- and Toto-Companies.
The distribution area for the lottery company is the jurisdiction of the Saxony state, only.
The lottery sovereignty in the German Federal Republic is enforced by the federal states. So there are accordingly sixteen economical, organizational and juridical independent companies, which have activities limited in there own jurisdiction of that German Federal State. Those companies are cooperating together in the German Lotto-and Toto-Block to realize the organization and execution of lotteries and sports according to common uniform gaming plans. The cooperation is very successful for similar gaming lay-in, payout logistics, winning quotes, as well identical juridical regulations towards the players.
The German Toto- and Lotto-Block is a company according to civil law (BGB). The companies are the 16 Lottery trust companies of the German States. The 16 state companies of the German Toto- and Lotto-Block directly or via a chain of participations owned by the States. They are state companies, however mostly GmbH’s (Gesellschaft mit beschränkter Haftung), limited liability company, but also companies according to civil code laws with and without own capital.
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 organization of the World Championship Football 2006, to be organized 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 organization 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 organization of the World Championship to be organized 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:
| 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 | 40,071,113 |
| Nordrhein-Westfalen | 145,574,733 |
| Rheinland-Pfalz | 26,024,381 |
| Saarland | 6,312,629 |
| Sachsen | 11,864,891 |
| Sachsen-Anhalt | 8,073,636 |
| Schleswig-Holstein | 17,302,450 |
| Thüringen | 5,447,224 |
Website: www.sachsenlotto.de
The Sächsische Lotto-GmbH (SLG) is established in October, 1990.
Sachsen Lotto has around 1,330 selling points, this means circa an average 3,400 for each selling point.
The surplus of the company results pours into the state budget of the State of Saxony. Since 1990 more than 1 billion Euro was transferred to the treasurer of the Free State, being able to use extra money for projects for youth, sports, arts and culture.
The gambling products are:
| 1999 (EUR) | 2000 (EUR) | 2001(EUR) | |
|---|---|---|---|
| Staff | 101 | 102 | 99 |
| Revenue proceeds | 296,828,299.11 | 313,343.499.53 | 327,764,264.84 |
| From that lay-in (lotteries & GlücksSpirale) | 283,708,159.52 | 300,030,675.2 | 5 313,428,752.49 |
| Preparation costs (lotteries & GlücksSpirale) | 12,259,235.92 | 12,171,066.22 | 12,760,772.53 |
| Staff costs | 3,896,952.60 | 4,035,034.82 | 4,283,957.39 |
| Remittance to Free State | 70,779,610.71 | 72,702,513.44 | 77,046,458.42 |
| Saxony | |||
| Annual net profit | 81,147.95 | 132,874.40 | 46,118.62 |
| Balance sheet total | 35,340,482.72 | 29,440,866.05 | 31,148,592.88 |
| Fixed assets | 4,577,749.09 | 4,235,999.04 | 6,120,329.05 |
| Equity capital | 3,255,169.18 | 1,310,819.07 | 1,356,937.69 |
| Balance profit | - | 177,511.20 | 90,755.42 |
| Accrued liabilities | 865,509.38 | 397,937.02 | 888,198.68 |
| Liabilities | 31,219,804.16 | 27,732,109.96 | 24,123,888.27 |
The compulsory remittance towards the State treasurer of the Free State of Saxony is the balance sheet of the net profit from the operation of the State lotteries (lay-in 304,113,285.41 Euro, after deduction of the contractual profit fallout to the players 148,503,352.15 Euro, the lottery tax 50,685,547.60 and the costs of the management by the SLG.
Products are:
The operation of a casino needs a license, issued by the Ministry of Interior in cooperation with the Ministry of Finance.
The license may only be issued to:
The license may be issued for a period of ten years and can only be renewed or issued to an other operator one year before ending of the legal term.
The operator of the casino’s has to remit to the Free State of Saxomy 80% of the gross players lay-in. For the first 5 operational years it is possible to remit only 65% of the gross players lay-in, depending on the management results.
The operators of the casino’s are exempted from all taxes.
Saechsische Spielbanken
Website: www.saechsische-spielbanken.de
Sächsische Spielbanken-GmbH & Co.KG are running casino’s in: