Version: 020415
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.
Liechtenstein is a hereditary constitutional monarchy, with its Capital Vaduz. In Central Europe the country is squeezed in between Austria (in the East) and Switzerland (in the West). The area is in total: 160 sq km. The official language is German.
The Principality of Liechtenstein was established within the Holy Roman Empire in 1719; it became a sovereign state in 1806. Until the end of World War I, it was closely tied to Austria, but the economic devastation caused by that conflict forced Liechtenstein to conclude a customs and monetary union with Switzerland.
Since World War II (in which Liechtenstein remained neutral) the country's low taxes have spurred outstanding economic growth. Contrary to many reports which speak of freedom from taxes, these must be paid in Liechtenstein, too. Taxes are raised on the basis of the Liechtenstein Taxation Act of 1961 which in the meantime has been amended and supplemented.
Low business taxes
the maximum tax rate is 18% - and easy incorporation rules have induced 73,700 holding or so-called letter box companies to establish nominal offices in Liechtenstein, providing 30% of state revenues. The country participates in a customs union with Switzerland and uses the Swiss franc as its national currency.
Liechtenstein has been a member of the European Economic Area (an organization serving as a bridge between European Free Trade Association (EFTA) and EU) since May 1995.
The automatic telephone system is linked to Swiss networks by cable and microwave radio relay.
| Population: | 32,528 (July 2001 est.) |
|---|---|
| Age Structure | 0-14 years: 18.41% (male 2,992; female 2,996) |
| Currency: | Swiss Francs (CHF) |
| GPD | purchasing power parity - $730 million (1998 est.) |
| Internet: | -. |
| Telecom | - |
In June 2000, Liechtenstein was identified by the FATF (Financial Action Task Force, on money laundering) as a non-cooperative and harmful tax haven. The result of this is that Liechtenstein was one of fifteen tax jurisdictions placed on an FATF blacklist. Each 'harmful' tax haven has a year in which to correct its tax regulations and legislation, once it has done so the tax haven will be removed from the list.
The FATF released its next annual report in June 2001, in which the organisation revised its list of countries and territories deemed non-cooperative. Only four were removed from the list, including Liechtenstein (the other three being the Cayman Islands, the Bahamas and Panama). Liechtenstein was praised by the FATF for its substantial efforts to conform to forty recommendations set out by the FATF in a code of good practice governing money laundering, including an amendment of the Due Diligence Act and the enactment of a new law on Mutual Legal Assistance in Criminal Matters.
In the State system of the Principality of Liechtenstein with its dual basis, the Diet is the legal body of the totality of the whole nation.The Liechtenstein Parliament is directly elected by the people through a system of proportional representation. The Lower Country electoral district has 10 members in the Parliament while the Upper Country electoral district is represented by 15 members. Up to 1989, the population of the two electoral districts was represented by 15 members ( 6 Lower Country, 9 Upper Country).
According to its position, the principal activity of the Parliament relates to the handling of legislation. It is the necessary body for lawmaking both on the legal and on the constitutional level. For a law to become effective, it must not only obtain the approval of the Parliament but also be sanctioned by the Ruling Prince, countersigned by the Head of Government and published in the national law gazette (Landesgesetzblatt). Every law agreed by the Parliament but not declared as urgent is subject to an optional referendum.
Website: www.pluslotto.com
The first Plus Lotto ticket was sold on 3 October,1995, (at 12:04, to be precise), which makes Plus Lotto the first internet Lottery in Europe. (According to Cynthia R. Janower in – Gambling on the Internet – : "The world's first virtual online casinos, Inc. (ICI), opened its doors on August 18, 1995 with 18 different casino games and online access to the National Indian Lottery..." (www.casino.org)
1995 - 2001 History at a glance
Plus Lotto operates a weekly 6 balls from 49 lottery. The current guaranteed jackpot is US$ 20,000,000.
Funds Distribution and Prize Money for PLUS Lotto weekly lottery: The distribution of funds is shown below: - 3% of total Stakes for a 6 number plus Mega Ball match.
Under the terms of the license and in addition to the amount donated to the International Federation of Red Cross and Red Crescent Societies a minimum of 5% of the proceeds will be donated to charities at the discretion of the Charity Allocation Committee which is controlled by the Liechtenstein government. As a result, up to 40% of the gross revenue of the PLUS Lotto lotteries may be used for charitable programs around the world, making it one of the most philanthropic lotteries in the world.
The highly competitive percentage of revenue distributed as prizes is possible because the costs of the lottery are low. There is no need for printed tickets, no need for expensive distribution systems. As such, it makes a perfect collaborator for the International Federation of Red Cross and Red Crescent Societies, one of the world's best known and most respected humanitarian organisations. It is also possible to play Instant Win scratchcards and fun interactive games, with payouts up to 95%, and Instant prizes up to US $ 586,698.00
Plus Lotto contributes to the International Federation of Red Cross and Red Crescent Societies and other charities. By the last audit they had donated US $ 2,300,000 to charities. Plus Lotto is fully audited by Ernst & Young AG, Vaduz .Plus Lotto's weekly Jackpot is guaranteed by a Lloyds of London insurance broker.
Website: www.globelot.com
On December 13th, 2001, Globelot Charity Foundation launched "Everyone Wins," an Internet lottery based in Liechtenstein. The lottery is operated by the Lottery Concept Company, a privately owned Danish group founded in 2000, and supplied by the International Lottery of Liechtenstein Foundation (ILLF), a government-approved and licensed lottery distributor.
The Globelot Charity Foundation, a nonprofit foundation based in Liechtenstein, is headed by an independent board of directors. The current beneficiaries are CARE, WWF, Human Rights Watch and the International Federation of the Red Cross and the Red Crescent.The Globelot lotteries are authorized and controlled by the government of Liechtenstein, a sovereign state in the heart of Europe. The tickets, which are sold exclusively through servers located in Liechtenstein, are distributed within the European Economic Area under the E.U. rule of Free Movement of Services.
Globelot is a European Internet lottery initiative and its promotion is focused on European countries. The group has stated through its press material that it will "use all technical means possible to exclude participants from countries and states where lotteries are banned by law." The Globelot SIXplusONE charity lottery has been developed in cooperation with the participating non-governmental organizations that also take part in the marketing of the charity. A minimum of 25 percent of the stake in Globelot lotteries is paid to the Globelot Charity Foundation for imbursement to the participating charities and organizations. A minimum 55 percent of the stake in Globelot lotteries is paid to the players as prizes. The stake is all payments made for a draw.
The grand SIX numbers plus ONE Bonus Ball match pays a prize of 20 million Euros (paid in 40 equal yearly instalments of 500,000 Euros), and the SIX numbers match pays 2 million Euros (paid in 40 equal yearly instalments of 50,000 Euros). Winners may opt to get a lump sum of 10 million or 1 million Euros respectively. These prices are insured by a Lloyds of London broker. The weekly drawing of the Globelot SIXplusONE charity lottery is audited by Ernst & Young AG Vaduz, a member of Ernst & Young International.
Steen W. Hamburger, the managing director of the Lottery Concept Company, founded the Globelot project in April 2000. Hamburger's background is in German and Danish marketing. Serving on the board are Dr. Peter Sprenger, Morten Aaboe and Michael Johnston. Sprenger, a doctor of law since 1985, is a partner in Administral Anstalt and member of the Parliament of Liechtenstein. He has formerly been president for the Court of Appeals for administrative matters and vice president of the Supreme Court in Liechtenstein. Aaboe is the director of Aaboe Co., a management consultancy based in Paris. Johnston is president of U.S.-based consultancy HJC New Media and an expert in fund raising as well as the use of the Internet by non-profit agencies.
Website: www Zabadoo.com
On December 18 , 2001, Zabadoo TM announced $20,000,000 Game Partnership with LuckySurf.com, Inc.TM.
ZabadooTM, the world's premier European Internet lottery operator, announced a new brand partnership with free-to-play site, LuckySurf.com, Inc.TM. ZabadooTM, whose executive team has been involved in the Internet since the early 1990's has operated the world's leading lottery site, PlusLotto.comTM, since 1995.ZabadooTM has recently started raising its own profile to promote its proprietary technology that allows partners to develop branded lottery, bingo and scratch card games and rapidly bring them to market.
Silicon Valley-based LuckySurf.com, Inc.TM was launched in September 1999 and routinely ranks as one of the world's most visited online properties with over 8 million registered players. Though based in the US, LuckySurf.com, Inc.TM has expanded its market into Europe and Asia. LuckySurf.com, Inc. is a free online lottery, featuring a daily chance to win a $1-million jackpot and other cash and prizes, all in a process that takes less than one minute. The new partnership with ZabadooTMmeans that players will be offered an additional range of pay-to-play games for tax-free jackpot prizes up to an astounding $20,000,000.Though initially offered to players registered with the LuckySurf.com, Inc.TM UK site, there are plans to roll out the new technology and content internationally in 2002.
Pierre Achach, CEO at LuckySurf says "the online sweepstakes industry is the coolest kid on the Internet block and this can be attributed to the universal desire to strike it rich. This partnership will broaden the realms of possibility for the Internet gamer and increase the number of avenues in which he/she can strike it lucky."
ZabadooTM CEO, Adriaan Brink says "over the years we have seen the Internet casino sector explode, and in our opinion, become saturated. The industry's next focus will have to be the relatively unexploited lottery sector.We take care of all the operational elements: licensing, insurance, game design, 24/7 branded customer care, languages, currencies, hosting, bandwidth and we can even build and maintain the site if the partner wishes. All they have to do is deliver the audience."
Pay-to-play games offered by ZabadooTM are licensed and controlled by the Liechtenstein government, audited by accountants Ernst and Young, and are underwritten by Lloyds of London.