Leading German online lottery broker Tipp24 AG has announced that it will end virtually all online advertising for the brokerage of state lotteries in the nation next year due to a regulation in the new State Treaty on Gaming.
The firm stated that the directive is designed to prevent gambling addiction even though there have been no studies showing that its lotteries, such as the ARD TV Lottery and SKL, are particularly addictive.
Tipp24 revealed that it would continue with legal steps against the ban on advertising particularly in Berlin where the local Administrative Court has declared in principal proceedings that the State Treaty on Gaming infringes European Union law and is, therefore, void in many aspects. It stated that it would also continue to cooperate with a few partners until this case’s legal situation has been finally resolved.
“It is particularly regrettable that, despite the current economic crisis, our politicians are clinging on to symbolic policies which not only massively hinder directly affected companies such as Tipp24 but also have considerable knock-on effects,” said Jens Schumann, Chairman of the Executive Board for Tipp24.
“The online advertising industry, for example, which recently had to drastically downscale its forecasts for 2009 as a result of the weakening economy, will lose several million Euros at a stroke.”
As a consequence of the State Treaty on Gaming, Tipp24 stated that over 170 jobs are threatened at its Hamburg offices. The listed company revealed that it has been operating profitably since 2002 and has paid approximately $295 million over the last two years in German tax.