Commercial game brokerage

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Commercial game brokerage (also independent game brokerage , lottery brokerage ) operates in Germany who, without being an acceptance point, lottery taker or betting broker, either mediates individual gaming contracts with an organizer, or brings interested parties together into gaming communities and mediates their participation in games to the organizer - themselves or through third parties. provided that this is done with the intention of generating sustainable profit through this activity. Public games of chance may only be arranged with the permission of the competent authority of the respective federal state. Brokerage without this permission as well as participation in payments in connection with unauthorized gambling are prohibited according to the State Treaty on Gambling Amendments (GlüÄndStV).

There are currently 23 licensed commercial gaming agents in Germany. (As of December 11, 2015)

Field of activity

Game brokerage in Germany refers to the sale of the monopoly lotteries approved in Germany to customers. No own lotteries are offered, but participation in the state lotteries is arranged. The mediation is the distribution of monopolistic games of chance by private traders. 

Commercial gaming agents are responsible for purchasing the technology required for brokerage and for advertising. Unlike the acceptance points, they do not receive any support from the lottery companies.

The commercial gaming agents broker the products of the German Lotto and Totoblocks and the class lotteries . Through constant investments and innovations, they also provide new ideas that should continue to make Lotto interesting. The existence of commercial gaming agents promotes competition and thus contributes significantly to long-term customer loyalty.

development

Until the State Treaty on Gaming was introduced in 2006, commercial gaming agents made a significant contribution to increasing sales of the products of state lottery companies. Every year they generate almost 20% of all lottery stakes with almost 2 billion euros. The commercial gaming agents were also pioneers in the Internet lottery game. Internet sales emerged in the 1990s and primarily appeals to a younger target group.

Innovation and special service orientation have always been the focus. Building up successful online sales has helped to open up new target groups and to bind existing audiences. In addition, independent gaming agents offer a high level of security and transparency, which also significantly increase their attractiveness.

The federal states also benefit from the innovations and the resulting successes of the independent gaming agents. The increased income flows into charitable projects and benefits the general public.

From 2008 to 2012 there was an absolute online sales ban for lotteries. From this restriction by the resulting slump in profits up to 86%. Since then, many of the independent brokers have been unable to hold their own and in some cases have had to file for bankruptcy or withdraw from Germany on business because economic work was no longer possible. 

Legal regulations

The State Treaty on Gambling, which came into force in 2008, is the legal basis for commercial gaming. Commercial gaming agents are subject to the supervision of the federal states. A number of requirements must be met in order to obtain approval.

requirements

The requirements to get a license to broker the lottery are not really set out. There is indeed a catalog of requirements, but the criteria named there are interpreted differently depending on the federal state. 

Requirements catalog

The “Catalog of requirements for commercial gaming brokerage” contains the most important criteria that must be met in order to operate commercial gaming brokerage. Basically, the catalog of requirements aims to guarantee security and transparency and to guarantee player protection. Are checked u. a. the distribution channels, the product range and the business concept. This catalog should help to enable state-controlled gaming in regulated channels. However, since the requirements are formulated very openly, the actual interpretation of the federal states sometimes varies greatly. This makes the application process much more difficult - especially for those brokers who are seeking permits in several federal states - since multiple applications are associated with considerable bureaucratic and financial effort.

Approval

Brokerage permits for the commercial brokerage of state lotteries are issued by the respective responsible gaming supervisory authorities of the federal states. Such a brokerage permit is limited to the respective country area. So 16 individual permits are required to operate nationwide. In this case, the permits themselves are bundled by the responsible gaming supervisory authority of the state of Lower Saxony. Advertising permits for television and the Internet must be applied for separately. The same applies to internet brokerage permits. 

There is no legal entitlement to a brokerage or advertising permit, even if all the criteria set by the state are met.

State Treaty on Gambling (GlüStV)

Commercial gaming brokerage is regulated in accordance with Section 19 GlüStv. In addition, however, the State Treaty on Gambling has significant effects on the activities of commercial gaming agents. Strong restrictions in the areas of advertising and sales, combined with inadequate commissions, pose an acute threat to the existence of the company.

Representation of interests: German Lotto Association (DLV)

The German Lotto Association has been representing the interests of independent lottery brokers in Germany since 2006. The DLV is actively and constructively advocating a comprehensive new lottery regulation that enables state and private providers to work together fairly, thereby securing the market in the long term and protecting the “ Lotto ” brand . This regulation must meet the needs of a modern and digital society in order to be able to survive in the future in this country and in international competition.

The President of the German Lotto Association is Norman Faber .

Web links

Individual evidence

  1. First State Treaty Amending Gambling. December 15, 2011, accessed March 27, 2017 .
  2. Gambling | Nds. Ministry of the Interior and Sport. Retrieved March 27, 2017 .
  3. Position paper of the German Lotto Association. German Lotto Association, accessed on March 27, 2017 .