“The Slow Death of the German Lotto” …and More!

“The Slow Death of the German Lotto” …and More!

“The Slow Death of the German Lotto”

Last week, we reported on the rapid decline of Germany’s classic lottery game “Lotto 6aus49.” In 2015, only 22.7% of all respondents had played the game in the preceding year, compared to 40% in 2009, a new study by the Deutsche Lotto- und Totoblock (DLTB) and the Bundeszentrale für gesundheitliche Aufklärung (BZgA) found.

Dutch newspaper de Volkskrant attempted to trace the causes of this dramatic fall in popularity of the once unassailable lottery game. At least some of the reasons appear to be cultural: players are increasingly embarrassed about their Lotto habit:

“The Lotto is often used by the Germans as an ironic pars pro toto for the small-mindedness of the old Federal Republic. The game 6aus49 has not changed since 1955, except for the size of the jackpot. Millions of people watched the draw on Saturday nights,     performed by a ‘Lotto fairy,’ a young woman who would read out the numbers in impeccable High-German.”

Another major cause for the decline in popularity of Lotto 6aus49 is the growing availability of flashier, more modern alternatives, some of them unregulated or outright illegal, causing – to add insult to injury – a noticeable drop in tax revenues.

 

Staatsloterij and De Lotto Finalize Dutch Lottery Merger

Following the approval by the country’s Council of Ministers in October 2015, Dutch lottery operators Staatsloterij and De Lotto have completed their merger.

The new operator is estimated to generate annual revenues of more than €1bn. For the time being, the two entities will retain their existing separate lottery product portfolio.

The new enterprise will be led by Staatsloterij CEO Frans van Steenis, with De Lotto’s former MD Claire Lurvink taking on CFO responsibilities.

“Staatsloterij and De Lotto have now formed what is the biggest traditional Dutch lottery organization,” Van Steenis said. “The Dutch lottery will now have a much greater social relevance than ever before.”

Last week, the lottery operators already announced they had signed an exclusive partnership with NYX Gaming to develop an online offering, ahead of the soon-to-be-expected regulation of online gaming in the Netherlands.

 

Intralot Secures Six-Year Brazilian Lottery Contract; Reports Strong Growth in Latin American Market

Intralot subsidiary Intralot do Brazil has signed a six-year contract to continue operating lottery games in the State of Minas Gerais.

Intralot currently operates five games for the state lottery (Keno, Multiplix, Minas 5, Lotomias and Totolot), with the portfolio set to be expanded under the new contract to include virtual games, which will initially be rolled out at 400 points of sale.

Meanwhile, Intralot CEO Antonios Kerastaris cited strong growth within the Latin American market as one of the key reasons for his company’s year-on-year increase in revenue during the twelve months to December 31, 2015.

“New contracts and renewals in the US, the Netherlands, Morocco, Nigeria, and Kenya underscore our ability to sustain and grow our business through select markets across the globe,” Kerastaris added.

 

Lottery Tickets Have Strong Behavioral Impact

What if someone would offer you twice as much for a lottery ticket as you originally paid for it? Rationally, it would be a smart move to sell: with the extra money you could buy a second ticket at no extra cost, effectively doubling your odds of winning.

Still, most people will decline the offer, Business Insider found: “A cognitive bias known as regret avoidance can make it difficult for people to choose the extra cash. The anticipated regret of giving up what might be the winning ticket weighs heavily on their decision.”

In related news, public health researchers found that inhabitants of Lesotho are more likely change their behavior in exchange for lottery tickets (and the chance of winning big) than for guaranteed small gifts.

 

Other News

Online operator Lotto24 remains upbeat despite continuing losses.

 

Greek gambling company OPAP has reported year-on-year growth across its key financials, despite having to contend with what it described as ongoing “restrictions and uncertainties” over regulation and tax.

 

The Isle of Man Post Office is eying partnerships with online lottery companies from around the globe with a goal of boosting its share of the direct mail (DM) market for online lotteries.

 

The Illinois Lottery will continue to sell tickets online, despite the expiration of its legal authority to do so.

 

Although the Mississippi House approved a proposal to establish a state lottery, the bill appears unlikely to pass the state senate.

 

IGT signs a seven-year contract with the Virginia Lottery.