Die Welt: German State Lotteries Not as Saintly as Everyone Believes …and More!

Die Welt: German State Lotteries Not as Saintly as Everyone Believes …and More!

Die Welt: German State Lotteries Not as Saintly as Everyone Believes

“The lotteries owned by the federal German states often stress that a large part of their revenues benefits good causes. In reality, large sums flow into their own pockets, while politicians use these funds to serve their personal pet projects,” respected German daily Die Welt reported last week.

Lottery officials – especially the so-called District Office Leaders, of which each state lottery may employ dozens – are paid extremely well, generally hundreds of thousands of euros per year. Significantly, these positions are awarded without much, if any, oversight.

A similar lack of supervision allows the selection of good causes that receive state lottery funding to be determined by the personal or political interests of politically appointed lottery officials.

“As they are the main beneficiaries of the current system, state politicians have no interest in better regulation and effective supervision of the federal state lotteries,” Dirk Uwer of the leading German law firm Hengeler Mueller said.

 

German State of Hesse Threatens to Withdraw from Interstate Gambling Treaty

Because of well-founded concerns regarding the legality of the current Interstate Gambling Treaty, the German state of Hesse is threatening to withdraw from the agreement.

“If those elements of the treaty that Hesse considers illegal are not changed, a separate Hessian gaming act would be conceivable,” according to the spokesman of the Hessian government.

 

Huge Jackpots Not Necessary for Successful Lottery

Although huge Powerball and Mega Millions jackpots capture the public’s imagination, more mundane lottery games with smaller prizes are responsible for a much larger part of the New Jersey Lottery’s annual revenues:

“During fiscal year 2015, the New Jersey Lottery sold more than $1.7 billion in scratch-off  tickets, which accounted for about 57 percent of the roughly $3 billion the lottery generated last year.

Mega Millions and Powerball, tickets for which are sold across the country, combined make up less than 11 percent of the lottery’s revenue. Each sold a little more than $160 million in   tickets. Sales for both are heavily dependent on the size of the jackpots.”

 

Canadian Community Charity Lottery Threatens Popularity of State Lottery

The Canadian community charity lottery “Chase the Ace” is becoming increasingly popular in the province of Nova Scotia. So far in the first quarter of 2016, the licensing division of Service Nova Scotia has issued 98 permits, almost 50 percent more than in 2015 to community organizations looking to raise funds for good causes.

“Chase the Ace” is proving to be so popular that its success may come at the detriment of state-owned Atlantic Lottery Corporation. “Some are worried that the government is considering caving into behind the scenes pressures to cap the Chase the Ace jackpots,” Member of the Legislative Assembly Eddie Orrell said. “A cap would seriously deter non-profits.” Others are even wondering whether a government takeover of the community lottery could be far off.

 

Other News

Secondary lottery operator PlayEuroLotto is aiming for a UK license.

 

The French Loto is celebrating its 40th birthday with a book featuring interviews with 49 jackpot winners over the years.

 

The Croatian Lottery’s gross profit increased by as much as 89.2 percent in 2015.

 

In what is by now a familiar story, Brazilian state lotteries are looking to expand into other forms of gambling.

 

Texas-based lottery and gaming solutions provider Shoutz has launched a new free-to-play social lottery platform.

 

The government of Western Australia is warning consumers away from secondary lottery operator Lotto Spring.

 

ZEAL reports a solid performance for Q1 2016.