14 August 2008
Federal Constitutional Court declares the regional principle with regard to the Lotto as unconstitutional
- Tipp24 regards its existing practice as having been vindicated
- German Federal Constitutional Court (BGH) refers to the ECJ with respect to the internet prohibition
- Successful cooperation with the lotteries in the various federal states can be continued
Today’s ruling by the Federal Constitutional Court (BGH) has overturned the regional principle, a key element in the State Treaty on Lotteries (GlStV), and hence reinforced the position of Tipp24. The company remains convinced that the State Treaty on Lotteries is in contravention of European law, the German constitution and German anti-trust laws. “We expect that this ruling will assist us in the upcoming legal dispute involving the State Treaty on Lotteries,” said Jens Schumann, Chairman of the Executive Board of Tipp24 AG.
The German Federal Constitutional Court in a long awaited decision has declared the contractual self-limitation of lottery companies to their respective federal states (Bundesländer), the so-called regional principle, as being in the last instance in contravention of anti-trust law. With the requirement for regionalisation, the federal states intend to prevent commercial gaming organisations from providing pools for nationally standardized lotteries independent of the state boundaries for individual federal state lotteries. Furthermore the BGH made reference to the reservations of the EU Commission on the legality of the State Treaty on Lotteries, especially with respect to the internet ban.
Furthermore, the BGH gave its opinion on the withholding of authorisation for private gaming operators. The BGH ruled that such authorisation may not “be withheld for extraneous reasons – such as to restrict competition or to increase the respective federal state’s revenue” Only in the event that protection of minors is compromised or if there is an imminent danger of an increase in the risk of addiction to gambling by the service of the private gaming operator may a permit be withheld.
“Even if the BGH ruling is basically restricted to an aspect of the lottery business in which Tipp24 is not involved – i.e. the provision of lottery terminals – it nonetheless contains several statements that are to be regarded positively,” commented Schumann.
Thus for example the existing practice of Tipp24 AG of offering national lottery tickets and of only placing these with certain federal state lotteries has been supported. The company assigns just over four percent (over EUR 300 million) of the total lottery volume in Germany to federal state lotteries. Furthermore the BGH makes it clear that the authorisations required for private gaming providers may only be withheld in narrowly defined cases.
“As Tipp24 has already implemented very high standards in the protection of minors and juniors and furthermore according to the latest studies the danger of addictive gambling from the federal state lotteries promoted by Tipp24 is extremely low, it is increasingly difficult for federal state governments to justify the withholding of authorisations. This applies in particular to the internet, where the entire range of user behaviour – in contrast to traditional points of sale – is possible,” said Schumann.
About Tipp24 AG: Tipp24 was established in 1999 and is now the market leader for lottery products in the Internet on the basis of billings. The company has succeeded in achieving impressive growth rates right from the start. Almost all state lottery products are supplied. It only takes a few mouse clicks to buy a lottery ticket – round the clock, quickly and reliably. The ticket receipt is kept safely, winners are notified about their prizes automatically by text message and e-mail and prizes are credited automatically. Subsidiaries of Tipp24 (www.tipp24.de) are Ventura24 in Spain (www.ventura24.es), Puntogioco24 in Italy (www.puntogioco24.it) and MyLotto24 in the UK (www.mylotto24.co.uk). Shares in Tipp24 AG have been traded at the Frankfurt Stock Exchange since 2005.
Press contact:Tipp24 AG
Andrea Fratini
Head of Media and Public Relations
Phone: +49 40 32 55 33-660
Fax: +49 40 32 55 33-5600
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