German state lottery operators unite against State Treaty on Gaming

The ARD Fernsehlotterie, Klassenlotterie NKL, Association of NKL and SKL lottery agents and the German Lottery Association (DLV) have joined forces in an initiative to revise the treatment of German lotteries under the State Treaty on Gaming.

The lottery companies have proposed what they describe as a risk-free easing of advertising and operating regulations for lotteries under the State Treaty, including a reversal of the ban on online sales and marketing, so as to enable them to achieve their mandate of channelling players away from illegal and addictive gaming offerings.

German state lotteries have experienced a 50 % fall in turnover since the introduction of the State Treaty, which in turn has cost the federal states approximately 5 billion eurosin tax revenues and contributions to social causes. Prior to the introduction of the State Treaty on Gaming, the members of this initiative enjoyed a combined annual turnover of more than 2.5 billion euros.

The lottery companies also cite research by Dr. Luca Rebeggiani of Hannover University which suggests that federal states may generate an additional 10 billion euros between 2012 and 2016 by relaxing lottery regulations.

Their position has been further strengthened by a report published by Dr. Jarass, Professor of Constitutional Law at Münster University. According to Dr. Jarass, the German government’s assertion that lottery games are addictive is without foundation and could be successfully challenged under constitutional and European legislation.

Dr. Jarass also finds that the current State Treaty on Gaming, which expires on December 31st 2011, is in breach of both German and European law.