Amsterdam, January 16th, 2014.

By Frank Bijman

A possible  merger between “The Lotto” en “The Dutch State Lottery” is nothing new. Over the last 15 years both parties have talked to each other more than once. As we could read in the press the reason this time is an economic one, and the opening of the online gaming market.

But for sure another reason is the procedure of tendering the licence of The Lotto and the lotteries of Novamedia at the end of this year. So, I can imagine that The Lotto tries to form a block together with The Dutch State Lottery against the tender. In that perspective it is also a defence move for De Lotto. Together they want to explore a license for online gaming.  The Dutch State lottery has spoken in the press last year several times that they will also go for a betting license and casino games. But with the merger they have a strong brand in portfolio for betting, which is Toto and it is not necessary to build an own brand. So, in the perspective of The State Lottery, it can be an offensive one. Besides their land based products they will be building online gaming by the products of The Lotto.

Concerning the economic reason we can say that as well The Lotto and The State Lottery had a tough year in 2013, with decreasing turnover. Especially the brand Lotto had a bad year. But the most worse is of course the decreasing remittance to charity for NOC*NSF. The reasons for a merge are clear, which are: decreasing turnover (= remittance to charity), possibilities of the online gaming market, cost savings (double jobs, building etc.), possible tender The Lotto license and both parties already share the back-end infrastructure (operated by Intralot).

by Frank Bijman, former CCO of De Lotto

But a possible merger must take also some legal steps, they need the permission of the authorities and they will face some expected legal problems. For sure there will be taken legal steps by some parties when there is not an honest tender procedure. I am also wondering or De Lotto has spoken to Novamedia (Postcode-, Vrienden-, en Bankgiroloterij).

Is a marriage with the State lottery the only choice? I doubt.  If there is a party in the Netherlands with a proven track record of gathering money for good cause, it is Novamedia. Perhaps it is more logical that Novamedia gets the license of De Lotto, they have the right culture of collecting money for the good cause without forgetting the greed of the customer.

An interesting point last week in the press was a comment of Novamedia about the payout to charities.  The Novamedia lotteries have the highest remittance, of each sold ticket 50% goes to the good causes.  For De Lotto it is about 21%, and Dutch State lottery is even less, about 16%! Novamedia has a fair point here. Why not all equal? All equal, gives fair competition. Imagine that all the legal challenges of the merger between State Lottery and De Lotto are solved, than there is a new company perhaps named “The National Lottery” with a predicted turnover of at least 1 billion and pay-out also 50% to the good causes, we are talking about at least 500 million! But to be honest, I think this is not realistic for several reasons. So, you can wonder if a merger solves the real problems?

Frank Bijman is Lottery and Betting Expert in the Netherlands.

-c- foto: goksites.nlAmsterdam, January 16th, 2014.

By Frank Bijman

staatsloterij-lotto

A possible  merger between “The Lotto” en “The Dutch State Lottery” is nothing new. Over the last 15 years both parties have talked to each other more than once. As we could read in the press the reason this time is an economic one, and the opening of the online gaming market.

But for sure another reason is the procedure of tendering the licence of The Lotto and the lotteries of Novamedia at the end of this year. So, I can imagine that The Lotto tries to form a block together with The Dutch State Lottery against the tender. In that perspective it is also a defence move for De Lotto. Together they want to explore a license for online gaming.  The Dutch State lottery has spoken in the press last year several times that they will also go for a betting license and casino games. But with the merger they have a strong brand in portfolio for betting, which is Toto and it is not necessary to build an own brand. So, in the perspective of The State Lottery, it can be an offensive one. Besides their land based products they will be building online gaming by the products of The Lotto.

Concerning the economic reason we can say that as well The Lotto and The State Lottery had a tough year in 2013, with decreasing turnover. Especially the brand Lotto had a bad year. But the most worse is of course the decreasing remittance to charity for NOC*NSF. The reasons for a merge are clear, which are: decreasing turnover (= remittance to charity), possibilities of the online gaming market, cost savings (double jobs, building etc.), possible tender The Lotto license and both parties already share the back-end infrastructure (operated by Intralot).

by Frank Bijman, former CCO of De Lotto

But a possible merger must take also some legal steps, they need the permission of the authorities and they will face some expected legal problems. For sure there will be taken legal steps by some parties when there is not an honest tender procedure. I am also wondering or De Lotto has spoken to Novamedia (Postcode-, Vrienden-, en Bankgiroloterij).

Is a marriage with the State lottery the only choice? I doubt.  If there is a party in the Netherlands with a proven track record of gathering money for good cause, it is Novamedia. Perhaps it is more logical that Novamedia gets the license of De Lotto, they have the right culture of collecting money for the good cause without forgetting the greed of the customer.

An interesting point last week in the press was a comment of Novamedia about the payout to charities.  The Novamedia lotteries have the highest remittance, of each sold ticket 50% goes to the good causes.  For De Lotto it is about 21%, and Dutch State lottery is even less, about 16%! Novamedia has a fair point here. Why not all equal? All equal, gives fair competition. Imagine that all the legal challenges of the merger between State Lottery and De Lotto are solved, than there is a new company perhaps named “The National Lottery” with a predicted turnover of at least 1 billion and pay-out also 50% to the good causes, we are talking about at least 500 million! But to be honest, I think this is not realistic for several reasons. So, you can wonder if a merger solves the real problems?

Frank Bijman is Lottery and Betting Expert in the Netherlands.

-c- foto: goksites.nl

 Amsterdam, January 16th, 2014.

By Frank Bijman

staatsloterij-lotto

A possible  merger between “The Lotto” en “The Dutch State Lottery” is nothing new. Over the last 15 years both parties have talked to each other more than once. As we could read in the press the reason this time is an economic one, and the opening of the online gaming market.

But for sure another reason is the procedure of tendering the licence of The Lotto and the lotteries of Novamedia at the end of this year. So, I can imagine that The Lotto tries to form a block together with The Dutch State Lottery against the tender. In that perspective it is also a defence move for De Lotto. Together they want to explore a license for online gaming.  The Dutch State lottery has spoken in the press last year several times that they will also go for a betting license and casino games. But with the merger they have a strong brand in portfolio for betting, which is Toto and it is not necessary to build an own brand. So, in the perspective of The State Lottery, it can be an offensive one. Besides their land based products they will be building online gaming by the products of The Lotto.

Concerning the economic reason we can say that as well The Lotto and The State Lottery had a tough year in 2013, with decreasing turnover. Especially the brand Lotto had a bad year. But the most worse is of course the decreasing remittance to charity for NOC*NSF. The reasons for a merge are clear, which are: decreasing turnover (= remittance to charity), possibilities of the online gaming market, cost savings (double jobs, building etc.), possible tender The Lotto license and both parties already share the back-end infrastructure (operated by Intralot).

by Frank Bijman, former CCO of De Lotto

But a possible merger must take also some legal steps, they need the permission of the authorities and they will face some expected legal problems. For sure there will be taken legal steps by some parties when there is not an honest tender procedure. I am also wondering or De Lotto has spoken to Novamedia (Postcode-, Vrienden-, en Bankgiroloterij).

Is a marriage with the State lottery the only choice? I doubt.  If there is a party in the Netherlands with a proven track record of gathering money for good cause, it is Novamedia. Perhaps it is more logical that Novamedia gets the license of De Lotto, they have the right culture of collecting money for the good cause without forgetting the greed of the customer.

An interesting point last week in the press was a comment of Novamedia about the payout to charities.  The Novamedia lotteries have the highest remittance, of each sold ticket 50% goes to the good causes.  For De Lotto it is about 21%, and Dutch State lottery is even less, about 16%! Novamedia has a fair point here. Why not all equal? All equal, gives fair competition. Imagine that all the legal challenges of the merger between State Lottery and De Lotto are solved, than there is a new company perhaps named “The National Lottery” with a predicted turnover of at least 1 billion and pay-out also 50% to the good causes, we are talking about at least 500 million! But to be honest, I think this is not realistic for several reasons. So, you can wonder if a merger solves the real problems?

Frank Bijman is Lottery and Betting Expert in the Netherlands.

-c- foto: goksites.nl

 

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