German Lotto Provider Moves to U.K.

Published Tuesday, March 31, 2009 -

Exclusive gambling policies under the German Interstate Gambling Treaty have stripped a Major German Lottery provider of it's ability to do business on home ground.

The lotto provider Tipp24 announced it will leave only 15 staff members at their jobs in Germany out of a previously employed 154. The company has moved it's operations to the U.K.

In a statement made by the firm recently, it was revealed that Tipp24 had to pull back it's business dealings and stop all together it's web based brokerage business as a result of prohibitions introduced by the new gaming legislation when the second stage of the State Treaty on Gaming took effect on 1 January, 2009,

Chairman of the Executive Board for Tipp24, Jens Schumann said, "We are forced to lay off the majority of our staff as the new State Treaty on Gaming forbids us from any form of lottery brokerage via the Internet in Germany,"

Mr. Schumann also stated, "The majority of these jobs will probably be replaced by new ones abroad - where the restrictions do not apply," . "At the same time as the German state is spending billions to save German jobs, it is also destroying the jobs of a healthy, mid-size company with a law which contravenes EU legislation.

"Moreover, Tipp24 AG transferred around EUR 130 million in tax revenues to the federal states last year alone. This money will now no longer be available to the state."

Schumann commented, "It seems more likely that the state treaty is designed to eliminate private companies under the pretext of preventing addiction," Schumann asserts. "After all, controlling addiction would be much more effective via the Internet than at the lottery kiosk. We will therefore continue to take legal action against the new state treaty."

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