Lottoland applies for German licensing

Privately-owned lottery firm, LottoLand has filed an application for licensure in Germany.

The company hopes for authorization to operate its own private lottery in numerous German States, styled on Germany’s Lotto 6aus49.

Lottoland already operates its own “World Millions” online lottery in addition to secondary lottery betting.

“With more than five million customers, we know how to thrill people of the lottery worldwide. Now we want to set up our own lottery in Germany and expand into their market,” Dr. Rolf Stypmann, spokesperson for Lottoland, said.

Stypmann, a lawyer by trade, headed up the State Lotteries in Lower Saxony (Toto-Lotto Niedersachsen GmbH) for 24 years, before retiring and subsequently joining LottoLand.

“We are very curious if the federal state authorities will permit us a concession or at least inform us about the requirements for such a license. Organisationally, private companies are able to handle lotteries at the level of state lotteries. This is what we experience in Italy, UK and Austria,” Stypmann said.

Lottoland’s press release cites figures from the German State Lottery Association which it says produces Euro 7.3 billion in annual revenues, of which 40 percent reportedly goes directly to the ministers of the interior and finance ministers of each federal state. The assignment of the money is independently decided upon by each state.

Stypmann believes its these figures that fuel the federal states’ desire to maintain the public lottery monopoly, blocking any kind of progress.

“Too much money is at stake, especially in comparison to sport bets. Public sportbetting operator Oddset generates revenues of Euro 186 million, which is comparably small.

“In February the German State Lottery Association had called on private sport bets suppliers to agree on mutual standards for a strictly controlled opening of the sport betting market,” Stypmann claims.

“No comparable measures have been taken concerning the lottery sector which is safer in terms of manipulation and less dangerous. This is absurd.“

In related news, LottoLand launched in Ireland offering secondary betting on major global lotteries such as EuroMillions, US PowerBall and MegaMillions.

The Irish Times describes Lottoland as controversial and an Uber-style assault on the traditional lotto industry.

“This is great news for Irish consumers who love playing lottery generally but who are going to be even more excited to be able to play the biggest jackpots in the world all quickly, easily and safely on the Lottoland app,” Graham Ross, country manager for Lottoland, said.

[Ross formerly served as Irish regional manager for Betfair].

“Add in the great value that Lottoland offers, particularly the €2 line on EuroMillions, plus a US PowerBall special jackpot that is set to reach $499 million before the end of April, and it is clear why we expect huge interest levels right from the start”.

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