Business Report 2015
The Lotto Principle 60 Years of Commitment for NRW
The Lotto Principle
The Lot
2−Business Report WestLotto 2015
The Lotto Principle
to Principle
The Lotto Principle A genuine win for NRW: 40 percent of Lottery revenue is used to benefit the public good in our state of North Rhine-Westphalia (NRW), being passed on via NRW state budget bodies and projects that benefit the common good there – including non-profit institutions, the so-called beneficiaries. Therefore, with each stake they pay, players who opt for the lotteries and betting games offered by the state-run gaming operator also opt to support the common good in our federal state and contribute to financing all the non-profit activities and the enormous diversity to be found in North Rhine-Westphalia. In 60 years, a sum of more than 26 billion euros has been used to support sport, culture and the arts, nature conservation, cultural heritage management and welfare. In the anniversary year of 2015, all key social organizations spoke out in favour of also preserving this model of financial support in future (see report starting on page 14). Business Report WestLotto 2015−3
Content
60 years of doing good for NRW: The Lotto Ball on tour
6
Highlights of the anniversary year
12
Yes to the Lotto Principle: The Münster Declaration
14
A success story with ongoing future potential: Theo Goßner and Andreas Kötter in dialogue
20
Happy Birthday WestLotto
26
Joining forces for people in need: WestLotto employees help with the refugees
28
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Dear Readers, A system of financial support that proves its worth anew every day: Out of every euro paid in to WestLotto by the players in the form of stakes, around 40 cents go to the State of North RhineWestphalia. This money is then used to fund social organizations in the fields of welfare, sport, the arts, culture, nature conservation, environmental protection and heritage management. In this way, a sum totalling over 26 billion euros has been raised in the course of the last 60 years. That is what is meant by the Lotto Principle – making an important contribution to the public good in NRW and providing the financial basis for a large number of non-profit projects and organizations. To mark WestLotto’s 60th anniversary, representatives of leading organizations have added their voices to the so-called “Münster Declaration”, speaking out in favour of preserving a monopoly for the lottery system. Together, they call on the politicians to continue the success story of the Lotto Principle and so enable them to continue their activities on their current level. 60 years after its foundation, WestLotto is well-placed to be able to fulfil its remit from the state in an increasingly challenging environment. In 2015, we succeeded in increasing our sales volume by 2.1 percent to altogether 1.68 billion euros. The game that attracted most players to make their crosses was LOTTO 6aus49. WestLotto recorded sales with this product of more than 925 million euros. Another product to be enjoying growth is Eurojackpot, the Europe-wide lottery. With stakes nearing 190 million euros, Eurojackpot recorded growth of over 20 percent compared to 2014. Also on the highly competitive online market with its numerous illegal and semi-legal operators, WestLotto was able to maintain its position in NRW and increase its online sales volume by around 20 percent. 63,000 new customers registered last year in order to play the lotteries offered on www.westlotto.de. Progress is also being made in connecting up the local sales agencies and the mobile and digital offerings. Consequently, for example, the “Shop-Play” function on the new WestLotto app links up playing on the smartphone with a visit to the sales agency. We will tailor our offerings even more closely in future to the wishes and needs of our customers. This is already the case with our stationary sales network, where face-to-face customer service is available in the approx. 3,500 sales agencies. Secondly, however, we are making targeted investment in multichannel offerings so as to take account of the changes in consumer habits in the digital world. Modern, responsible lotteries with attractive prizes and the promotion of the common good – our way of ensuring that the Lotto Principle has a future.
Theo Goßner
Andreas Kötter
Christiane Jansen
Detlef Nagel
Chief Executive Officer WestLotto (until 31.03.2016)
General Manager WestLotto (until 31.03.2016) Chief Executive Officer WestLotto (from 01.04.2016)
General Manager WestLotto (from 01.01.2016)
Deputy General Manager WestLotto
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Social Commitment
6−Business Report WestLotto 2015
Social Commitment
60 years of doing good for NRW The Cologne Rhine Meadows, Zollverein Mine, the …xternsteine Rocks – to mark the 60th anniversary, the giant Lotto Ball went on a grand tour of North Rhine-Westphalia. At distinctive locations throughout the land, WestLotto put an oversized lotto ball bearing the number 60 on display as a means of drawing attention to what has been a very special connection: After all, for six decades now, all manner of non- profit projects have been funded with the aid of revenues from the state-run games of chance. And through their stakes, all Lotto players contribute to cultural diversity, the conservation of nature and s ocial cohesion between the citizens. A case of teamwork that benefits everyone, but one that many people in NRW have only become fully aware of through the striking anniversary happenings.
Business Report WestLotto 2015−7
Social Commitment
Application of the stakes from LOTTO 6aus49 in NRW (2015)
50,00 % Prize allocation
24,25 % Concession fee
16,67 % Lottery tax
7,79 % Sales agency commission
1,29 % WestLotto share*
* The remaining 1.29 percent share goes to cover WestLotto’s expenses for technical equipment, marketing, personnel and administration.
Will the printed nylon cover be finished in time? Will the giant ball be able to cope with the stresses of wind and weather? Shortly before the start of the grand “Lotto Ball Tour”, the tension in the project team was tangible. However, the big day – the 28th May 2015 – came round at last, and the kickoff for the anniversary event was given at the WestLotto headquarters in Münster. The giant Lotto Ball, specially made for the event and measuring four metres across, was blown up for the first time with the aid of a special pump and sent off by the management and staff on its journey through NRW. The idea behind this unusual tour was that to mark its big birthday, WestLotto should not celebrate itself but rather all Lotto players and their
contribution to the projects that aim to benefit everyone in NRW. As a highly visible sign to mark 60 years of commitment to the common good and as a symbolic way of saying “thank you”, the outsize Lotto Ball rolled through the land, visiting places that typify the kind of activities the funding goes to: sport, welfare, culture and the arts, cultural heritage management and nature conservation. The photographic motifs this gave rise to were presented to the general public in the shape of advertisements, postcards, and also a special exhibition. In their attractive and appealing way, they all aimed at conveying one core message, namely that state-operated gaming has a firm place in NRW and indirectly benefits every citizen in the state.
An energetic homage to 60 years of sport funding: the Wuppertal Greyhounds with the Anniversary Lotto Ball.
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Over five million sports enthusiasts in 19,500 clubs make use of the offerings of the NRW State Sports Federation. That is almost 30 percent of the NRW population Total commitment to sport The first stop on the Lotto Ball Tour in June 2015 was a visit to the Wuppertal Greyhounds, an American Football team that is as genuine as they come outside of the USA. The photo shooting also proved to be as turbulent und energy-charged as a foot-
Social Commitment
Nature conservation needs support: The …xternsteine Rocks in the Teutoburger Wald are among the most spectacular natural highlights in NRW.
ball match itself: As if magically drawn to the mega-ball, passers-by kept constantly walking into the picture – until the trainer finally stepped in and managed to get the “field” under control. The Wuppertal Greyhounds are just one of the approx. 19,500 clubs that are organized in the NRW State Sports Federation (Landessportbund NRW) and benefit from the financial support provided through WestLotto funding. Whether mass sport, disabled sport or top-class sport: very many of the opportunities provided in North Rhine-Westphalia would be inconceivable without the funding from the revenues earned through state-managed gaming. Of the more than 600 million euros paid annually from WestLotto’s gaming revenues to the State of NRW, a substantial portion goes to sport.
Structural support is one aspect – but WestLotto also underscores its commitment to sport in NRW with a large number of individual measures. In the anniversary year, for example, working in collaboration with the NRW Foundation (NRW-Stiftung), the company held the seventh NRW Cycle Tour (NRWRadtour), which attracted some 1,100 participants. A further highlight in the 2015 sports year were the Felix Awards, which was once again supported by WestLotto as one of the partners. The event was held on 11 December 2015, when the best sportsmen and women from North Rhine-Westphalia were celebrated in Düsseldorf. Over 141,000 members of the public had previously made use of the opportunity to choose their favourites through an online voting procedure. The ultimate winners were
Out of the total revenue from Lotto betting stakes in 2015, a sum of 654 million euros was provided in funding to nonprofit beneficiaries in NRW.
judoka Karl-Richard Frey for the men’s prize and wrestler Aline Focken for the women’s. Another event that aroused a great deal of attention was a campaign entitled “What I’ve learned from sport”, which was created by the NRW State Sport Federation and financially supported by WestLotto. This joint effort aims to underscore the impor-
Breakdown of the designated concession fees by recipient groups (2015)
39% Sport
31% Welfare
13 % Culture & the arts
10 % 7% Cultural Nature heritage consermanagement vation
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Social Commitment
From the Arbeiterwohlfahrt (worker welfare) to the German Red Cross, the work of many non-profit organizations is financed in large part out of Lotto funding.
tance of sport in fostering social integration and education, respect, tolerance, self- confidence, responsibility and stamina – such defining qualities are transmitted not only at school but also through club sport. Nature conservation: a major goal Change of scene: To draw attention to the importance of nature conservation, WestLotto sent the Lotto Ball in July to one of NRW’s most remarkable natural features: the Externsteine Rocks in the Teutoburger Wald. As the giant ball was susceptible to the wind and repeatedly threatened to roll into the water, the team ultimately secured it with special ribbons – and the photo motif with the breathtaking sandstone formation as a backdrop was able to be realized as planned. One of the bodies engaged in the preservation of NRW’s natural treasures is the NRW Foundation, whose work is financed out of WestLotto’s lottery revenues. One key focus of the NRW Foundation’s activities is purchasing protection-worthy land and thus ensuring the permanent preservation of suitable habitats for endangered animals and plants. One example of this are the “Rieselfelder” in Münster, a private nature reserve encompassing an area of approx. 450 hectares. This site, which used to be the sewage beds
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Around 40 percent of the annual stake income goes to 28 non-profit-organizations. for the city of Münster, is now a safe haven for countless endangered water and wading birds. In 2015, the process was put in train for transferring four other national nature heritage sites to the NRW Foundation. The foundation will then own 87 nature conservation sites with an area totalling 6,700 hectares. The stage is clear for culture and the arts In August, WestLotto celebrated the support it provides for culture and the arts with a dance performance, with the city of Cologne as backdrop. Without financial assistance, it would be virtually impossible to maintain the current diversity of creative activity in NRW. So also in this case, the Lotto Ball symbolizes the contribution made by state-managed gaming: WestLotto money goes, among other things, to the NRW Choir Association (ChorVerband Nordrhein-Westfalen) and the NRW Arts Foundation (Kunststiftung NRW), with the aid of which it has been possible to
realize more than 6,000 projects, ranging from the fine arts to theatre and literature, over the past 26 years. In the field of dance, for example, the Arts Foundation created the “Pina Bausch Research Fellowship” programme in 2015, and also supported the “tanz nrw 2015” festival as a platform for presenting the newest trends in dance and choreography. Further highlights in the anniversary year also included the “Move! 14 Tage für modernen Tanz” festival in Krefeld and the 5th International Bonn Dance Solo Festival. Representing all artists and cultural workers in the state, dancers Birgit Mühlram and Dwayne Holiday expressed their appreciation for the financial support for their profession with some sensational jumps for the Lotto Ball photo. The array of cultural treasures in North Rhine-Westphalia also includes architectural monuments, historic parks, and also former industrial facilities such as the Zollverein Mine (Zeche Zollverein) in Essen, which since 2001 has been a UNESCO World Cultural Heritage site. And the cultural heritage managers rely on support from WestLotto, too. Thus, for example, the Ringpromenade encircling the site of the now disused Zoll verein Mine was completed with the help of
Social Commitment
Lotto funding. So it is no coincidence that in September, the Lotto Ball Tour put in a stop in front of this Ruhr Area landmark. Together with the German Cultural Heritage Foundation (Deutschen Stiftung Denkmalschutz), the NRW Nature, Homeland and Culture Foundation (NRW-Stiftung Natur, Heimat, Kultur) and the association of bodies responsible for maintaining the fabric of the cathedrals in NRW, WestLotto will also continue its engagement in preserving the state’s cultural heritage and fostering public appreciation of the value of architectural monuments in future. Among other things, it is planned for Burg Hülshoff in Havixbeck, where the poetess Annette von DrosteHülshoff was born in 1797, to benefit from the lottery revenues. Here, a Droste Cultural Centre will be created in the near future. Committed to the public good Before the Lotto Ball returned from its mission at the end of 2015, it made its last grand appearance in October – as a distinctly eyecatching symbol for the promotion of the common good with the aid of lottery money. There are numerous social organizations and institutions in NRW that are devoted to helping people in different states of need, including the Workers Welfare (Arbeiterwohlfahrt), “Diakonie” and “Caritas” organizations. To assist them in their impor-
With a sum of more than 26 billion euros, WestLotto has been supporting sport, welfare, the arts and culture as well as cultural heritage management and nature conservation in North RhineWestphalia for 60 years. tant work, they are supported financially out of the revenues earned from the games offered by WestLotto. Projects that benefit from Lotto funding include, for example, a programme of grief counselling for bereaved children and juveniles that has been created by the Westphalia-Lippe State Association and Münster District Association of the German Red Cross. The NRW State Welfare Care Foundation (Stiftung Wohlfahrtspflege des Landes NRW) has provided assistance for the “Haus am Sandberg” in Duisburg, a multicultural home for the elderly where 96 occupants from ten different nations currently live together. These are just two examples that impressively illustrate how money earned from state-run betting games contributes to social integration in North Rhine- Westphalia.
Zollverein Mine in …ssen, a World Cultural Heritage site supported from the revenues of state-managed betting games.
Beneficiaries of the designated concession fees in euros (2015) 28.483.000 » State Sports Federation 24.180.100 » Working Group of the Central Associations of Independent Welfare Carers in NRW 9.553.300 » Arts Foundation NRW 7.394.300 » NRW Nature, Homeland and Culture Foundation 3.867.100 » Sports Foundation NRW 3.343.134 » Federal Working Group of Independent Welfare Carers 3.343.134 » German Cultural Heritage Foundation 3.343.134 » German Olympic Sports Federation 2.850.000 » Cathedral Fabric Preservation Societies 2.843.900 » Environment and Development Foundation 2.832.800 » Support for Popular Culture 1.250.000 » Grants to Support Facilities for Gambling Addicts 1.169.400 » Support for Sports Venues 954.300 » NRW State Welfare Care Foundation 306.800 » German Sports & Olympic Museum 224.500 » Major Sporting Events 178.900 » West German Football and Athletics Association 45.600 » Development of Mass Sport
Business Report WestLotto 2015−11
The Anniversary Year
Anniversary “Glück” A special edition of the customer magazine "GLÜCK" (luck) was published to mark the official birthday of WestLotto on 9 October 2015. The articles focussed in particular on topics such as the public good, innovation and WestLotto as an economic factor
The inventor in bronze LOTTO 6aus49, which still retains its popularity today, was invented 60 years ago by Westphalia-born Lothar Lammers. In 1955, together with his colleague Peter Weiand, he founded “Nordwestlotto”, the forerunner of today’s WestLotto. To mark the anniversary, WestLotto CEOs Andreas Kötter (left) and Theo Goßner unveiled a bronze bust of the “founding father” in the company’s headquarters
Anniversary exhibition in the Landtag “Good for NRW. Good for you.” This was the motto of a special exhibition shown in 2015 in the Landtag, the NRW parliament building, in Düsseldorf. With the aid of info panels, videos and interactive elements such as a Google map, visitors were able to find out more, for example, about regional projects that are assisted by Lotto funding. The exhibition also provided an outlook into the future of lotto as a game and presented various innovations, among them WestLotto’s Sim KENO App. This app enables lotto players to find their lucky numbers simply from their heartbeat.
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Münster Declaration The political high point of the anniversary year was the signing of the “Münster Declaration” by the presidents, board members and representatives of the most important non-profit organizations in North Rhine-Westphalia at a conference held at the end of November. The Declaration calls for continuation of the Lotto monopoly – a clear vote in favour of the current business model of state-operated gaming with the proceeds being used for good causes: the so-called “Lotto Principle” (see also page 14).
Highlights of the anniversary year The 60th birthday – a good reason to celebrate, look back, and also look forward. WestLotto used the anniversary year above all to demonstrate the kind of areas where the company, together with the Lotto players, is able to do much good. Numerous events were held to celebrate the close connection between WestLotto and sport, welfare, culture and the arts, cultural heritage management and nature conservation in North Rhine- Westphalia. Detailed information on the anniversary activities can be found on the Internet at jubi.westlotto.de.
The Anniversary Year Lotto Ball Tour: Flying visits to the sales agencies Through their stakes, every Lotto player also supports non-profit projects in NRW. In the course of 2015, this was brought even more strikingly to the attention of many customers at the approx. 3,500 WestLotto sales agencies. In parallel with the Grand Lotto Ball Tour (see page 6), a smaller birthday ball – this time “only” two metres in diameter – put in an appearance at various agencies: on the roof of a branch in Düsseldorf, for example, or right in the middle of the salesroom of an agency in Hilden. This was a genuine eyecatcher for the customers, and also a welcome opportunity to discuss playing Lotto as a way of supporting “good causes”. To strengthen customer loyalty further, a special competition was offered for dyed-in-the-wool Lotto fans: By handing in postcards with motifs of the Lotto Ball Tour at the sales agencies, they were in with a chance of winning an opportunity to be present at the live draw of the winning Lotto numbers in Saarbrücken.
WestLotto Gourmet Walk A charity event of a special kind took place at the end of October 2015, when guests from all parts of NRW came together at the WestLotto headquarters to enjoy the good things in life, and in doing so to do good themselves. Several top chefs treated the guests to the best the culinary art has to offer, and the event was accompanied by a musical and artistic supporting programme. At the end of the day, WestLotto was able to hand over a cheque for a donation of 25,000 euros to the Kinder-Herz-Stiftung (Children’s Heart Foundation).
NRW Cycle Tour In summer 2015, the starting gun was given for one of the state’s most popular annual sports events. For the seventh time, WestLotto, together with the NRW Foundation and the WDR 4 radio channel, invited the public to take part in the NRW-Radtour, or Cycle Tour. In July, in midsummer temperatures, over 1,000 participants cycled some 245 kilometres through the Münsterland region. Along the way, they had the opportunity to get to know some selected cultural institutions and nature conservation areas – and, together with the Lotto Ball, also put in a stop at WestLotto in Münster.
www.jubi.westlotto.de
Business Report WestLotto 2015−13
Münster Declaration
Yes 14−Business Report WestLotto 2015
Münster Declaration
to the Lotto Principle Business Report WestLotto 2015−15
Münster Declaration
A strong The Münster Declaration: A unanimous “Yes” to keeping the state support model
As a “signal to the politicians and the people in North Rhine-Westphalia” was how Theo Goßner, WestLotto Chief Executive Office, described the outcome of the Beneficiaries Conference at the end of November 2015. In connection with the WestLotto anniversary occasion, representatives of all major social organizations spoke out in favour of preserving the “Lotto Principle” – an emphatic plea for the continued provision of financial support drawn from gaming takings, a system that has provided the basis for many non-profit institutions and projects in North Rhine-Westphalia for decades. Why do we need a state lottery monopoly? Shouldn’t the market simply be opened up
“As a reliable partner for sport, the German Lotto- und Totoblock is irreplaceable. Without the funding from Lotto, the tasks existing both in mass sport and top-class sport could not be fulfilled as they are being today. Therefore, the German Olympic Sport Federation supports the lottery monopoly and signs the Münster Declaration with complete conviction.” Dr. Michael Vesper, DOSB
completely, as in other areas of the economy? A clear response came in 2015 from representatives of social and cultural institutions and also sports bodies in NRW. In a hitherto unprecedented manner, they underlined their solidarity with WestLotto and demanded the retention of the “Lotto Principle”.
“WestLotto is a dependable partner. Around 100 jobs in our organization are dependent on this partner. This is because 35 to 40 percent of the money we need every month comes from the lotteries operated by WestLotto. Without the funding from state-operated gaming, we would have to sharply reduce our activities. We are building on this support continuing in future.” Michael H. G. Hoffmann, Central Cathedral Fabric Preservation Society in Cologne
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For 60 years now, the so-called beneficiaries have been supported with money earned by WestLotto. 40 percent of the gaming stakes are cycled through the NRW state budget to non-profit projects and so benefit all the people in our state. In the “Münster Declaration” (see page 18/19), the presidents, board members and representatives of 28 leading organizations expressed their support for this model and appealed to the politicians to also ensure its continued existence in future. The signatures of the NRW associations mark a milestone in the collaboration with WestLotto. For the company itself, they are
Münster Declaration
.de
commitment a confirmation and a spur to continue consistently on the course already laid down for the future, to gear itself even more strongly to the wishes and needs of its customers – and at the same time to preserve its own central values. Especially in a competitive environment in which commercial lottery agents are only a mouse click away, the social significance of a responsible gaming structure stands out particularly clearly. For 60 years now, the people in NRW have placed their trust in WestLotto, relying on its integrity and its high quality and security standards. In contrast to the situation with illegal providers, they benefit from the orientation of state-operated gaming to the public
“The existing support system must be ensured for the future. The important thing is that we agree on a common route – and that talks then follow in the political arena.” Fritz Behrens, NRW Arts Foundation
interest – and also from clear guidelines for responsible gaming. Together with the approx. 3,500 sales agencies, WestLotto is committed to working for the prevention of gambling addiction, and consistently ensures compliance with high standards in the field of youth and consumer protection.
“The Münster Declaration is very important for us, especially as it radiates beyond North Rhine-Westphalia. The special-purpose levies from the GlücksSpirale have helped to finance many large and small social projects in the past. Also with an eye to the additional tasks arising from the immigration of refugees, it is essential to preserve the existing system of support.” Claus Helmert, Federal Working Group of Independent Welfare Carers
This was also officially confirmed in 2015 through the renewed full certification of the company under the Responsible Gaming Guidelines of the European Lotteries. “The Lotto Principle must be preserved”: The Münster Declaration is a signal to the public – and an unequivocal demand aimed at the politicians. Regulated money movements, complete transparency and meaningful use of funds: According to the will of the social agencies, the framework conditions must also be maintained in future and so enable the success story of the state lotteries to continue and the non-profit organizations to carry on their work in full scope.
Business Report WestLotto 2015−17
Münster Declaration
M Ü N S T E R DEC L A R AT ION The Lotto Principle: A gain for NRW North Rhine-Westphalia is our home. The social cohesion, the various religions and cultures, the local customs and habits and the diversity of the regions, but above all the people are what make our state what it is. The values associated with these things are at the heart of our activities. The cohesion between all groups of the population in NRW is very important to us, the social agencies. We fulfil our tasks wherever the people and the state need us, whether in culture and the arts, organized sport, welfare care or environmental protection, heritage management or nature conservation. With our members, our paid staff, our volunteers and helpers, we make an elementary contribution to the preservation of our home state and a sense of social togetherness within our society. The engagement of many private citizens in our organizations is crucial for the success of our work. But in addition to that, our institutions must be set on a financial footing that gives us security for our work in the long term. Our connection with WestLotto plays a crucial role in this. For six decades now, the political decision makers have ensured that the concession fees from state-managed gaming are made available to the agencies and organizations that serve the public interest. On the one side, the state-run lottery company has a public duty to provide a range of responsible gaming products for the people in NRW – also with the possible addiction hazards and the needs of youth and consumer protection in mind. And on the other, the income from the gaming stakes is used to finance activities that benefit the public good. This so-called Lotto Principle means that out of every euro received by Lotto, 40 cents are made available to the state budget, of which the state of NRW then uses part to support the tasks of the social agencies. With their stake money, every Lotto player makes a contribution to the public good. In the 60-year history of WestLotto to date, this has added up to a sum totalling around 26 billion euros. This funding model with its orientation to the common interest must not be put at risk. It has proved itself over many decades and must also continue in future. The state lottery monopoly provides the social agencies with the basis for financing their tasks and thus contributes to giving them a reliable framework for their activities. We are concerned to see the current developments in the gaming sector, with increasing numbers of illegal providers operating on the lottery market whose activities are not guided by the Lotto Principle but are aimed exclusively at maximizing the profit for the individual companies. We call on those in political responsibility to put viable statutory regulation in place and so put a stop to this development. It is our objective, working in collaboration with the state political powers and WestLotto, to safeguard the Lotto Principle and its orientation to the public good and so make a sustained contribution to the cohesion in our state. Münster, 25 November 2015
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Münster Declaration
M Ü N S T E R DEC L A R AT ION
Business Report WestLotto 2015−19
Interview
Theo Goßner, Chief Executive Officer of WestLotto until March 2016
Andreas Kötter, Chief Executive Officer of WestLotto from April 2016
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Interview
A success story with ongoing future potential Building on proven concepts, but at the same time looking forward: 60 years after its launch, WestLotto has created a strong basis for dealing with the challenges of today. But how should the company respond to the growing competition from private providers, to changing customer demands, and to the ubiquitous process of digital transformation? Theo Goßner, long-time WestLotto CEO, and Andreas Kötter, his successor in office since April 2016, talk about social responsibility, gaming products that appeal to the consumers, and the future-oriented positioning of the company.
Business Report WestLotto 2015−21
Interview
“NRW needs a range of gaming products that are attractive, trustworthy and oriented to the public good, and that is precisely what the company with its decades of experience stands for.” Theo Goßner
››› Mr. Goßner, the year 2015 marks a high point in the history of WestLotto. How would you take stock on the company’s 60th anniversary?
Theo Goßner: I think last year made one thing especially clear: 60 years of WestLotto – that is With its uncompromising customer orientation, innovative products and the intensified connection between the various sales channels, WestLotto will continue to be able to fulfil its mission successfully in future.”
a success story that is still ongoing. With our many anniversary events, we have succeeded in strengthening public awareness of the social importance of WestLotto. NRW needs a range of gaming products that are attractive, trustworthy and oriented to the public good, and that is precisely what the company with its decades of experience stands for. Quality, security and responsibility form the constants that distinguish WestLotto from its increasing number of competitors – including illegal ones. Additionally, in the past years, we have set the course for further development of our range of products so as to meet the needs of today. With its uncompromising customer orientation, innovative products and the intensified connection between the various sales channels, WestLotto will continue to be able to fulfil its mission successfully in future. That is also a positive result for me personally. ››› WestLotto also enjoys the express support of the umbrella organizations of the non-profit agencies in NRW, who in 2015 gave their public backing to preserving the Lotto Principle. What weight does the so-called Münster Declaration carry?
Theo Goßner: The jointly signed resolution supporting preservation of the German Lottery
onopoly and hence for the “Lotto Principle” is confirmation of WestLotto’s corporate purpose and at m the same time sends a positive signal to those in positions of political responsibility. For the State of NRW, its people and its cultural diversity, the funding model offered by state-run gaming is indispensable – especially in this day and age, when money is getting tighter everywhere. It provides the financial basis for the work of many non-profit organizations in the fields of culture and the arts, sport and the public good. After all, a large part of the approx. 40 percent of the revenues earned from state-run lottery games go to organizations and projects of that kind in NRW – making a sum that adds up over the past 60 years to more than 26 billion euros.
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Interview
“Only if a stable framework for state-licensed gaming is put in place we will be able to meet our responsibility for the public good in the long term.” Andreas Kötter
Andreas Kötter: In the Münster Declaration, the institutions concerned draw e mphatic attention to the size of the gap that discontinuation of the lottery monopoly would cause. We aim to follow up this successful measure in 2016 and join forces with our beneficiaries in support of adequate financing for their valuable work. In that context, we will further intensify the fruitful collaboration with the social agencies and engage in a more intense dialogue with the political powers. For only if a stable framework for state- licensed gaming is put in place will we be able to meet our responsibility for the public good in the long term. ››› The political framework is one thing – but another factor for success are attractive and competitive products. What product strategy is WestLotto pursuing in order to attract people who have the urge to gamble to engage in legal and socially recognized games?
Theo Goßner: On the one hand, we can rely on classical favourites such as LOTTO 6aus49, but we also regularly launch innovations. …urojackpot, for example, the …uropean lottery, has grown into a highly successful product. Since its launch in 2012, the new lottery has been growing constantly. In October 2015, we were able to welcome Slovakia on board as a new partner, so around 269 million people in 17 …uropean countries now have the chance to become a millionaire with …urojackpot. And incidentally, the smooth-running cross-border collaboration is not least due to the experience and know-how of the experts at WestLotto. Our control centre in Münster is the technical hub for the entire lottery; this is where all the data comes together that is needed for the handling and evaluation of the game.
“Our control centre in Münster is the technical hub for the entire lottery; this is where all the data comes together that is needed for the handling and evaluation of the game.”
Andreas Kötter: It is especially the young, international look and attractive jack-
pots that make …urojackpot our strongest growth motor. The highest win to date went to a player in the Czech Republic, who won a record jackpot of 90 million euros in May 2015. Wins on this scale also make headlines here in Germany and cause many people to dream of what it would be like to win the big prize. However, alongside the potential prices, the playing experience itself is becoming increasingly important. As part of the innovation process that was launched in 2014, we look carefully at what interests people, what technologies they use on a day-to-day basis, and how they will communicate with one another in future. Understanding the customers, communicating with them as equals and designing the products and services to suit their needs – those are the parameters for successful marketing in the digital age.
“Understanding the customers, communicating with them as equals and designing the products and services to suit their needs – those are the parameters for successful marketing in the digital age.”
Business Report WestLotto 2015−23
Interview
“Our focus is on transferring the “Lotto experience” into the digital world.” Theo Goßner
››› In your innovation process, you make use of the creativity of WestLotto personnel to develop new ideas in dialogue with outside experts. Are there already any concrete results?
Theo Goßner: Our focus is on transferring the “Lotto experience” into the digital world. We have
already achieved that with two innovative products. With the new Sim K…NO App, for example, the focus is on linking up people, technology and emotion. In combination with the Apple Watch, the pulse rate and other personal data are used for finding people’s individual lucky numbers. At the end of 2015, we also launched Germany’s first Lotto App on the market. This not only accepts play orders, it also makes marking the crosses a fun experience. The new app uses the capabilities offered by the smartphone; the personal lucky numbers can be obtained by stroking, shaking or sliding. Innovations of this kind enable us to set new accents in mobile gaming and in particular meet the wishes of young players.
››› Today’s players expect to be able to choose between various channels: via smartphone while on the move, from home on the PC, or the classical way with a visit to the sales agency. How is that reflected in WestLotto’s sales and marketing strategy? The response to the changes in consumer behaviour is clearly to go “multichannel”. Connecting up the various sales channels – sales agency, online and mobile – is one of the central themes of WestLotto for the future.
Andreas Kötter: The response to the changes in consumer behaviour is clearly to go “multichannel”. Connecting up the various sales channels – sales agency, online and mobile – is one of the central themes of WestLotto for the future. One example of how all sides can benefit is with so-called beacon technology, which we are currently testing in selected WestLotto sales agencies. Beacons are mini-transmitters that send out signals at fixed intervals. If a customer with a smartphone comes within range of the beacon, he or she is provided with personalized offers and information about Lotto by push message – and may perhaps be motivated to call in at the sales agency.
The new WestLotto management (from left to right): Andreas Kötter, Chief …xecutive Officer since 1 April 2016; Christine Jansen, a member of the management board since 1 January 2016; and Detlef Nagel, deputy general manager.
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Interview
››› The new technologies open up fascinating possibilities for game design and personalized customer contact. But they also raise new questions. What is the situation regarding consumer protection, for example?
Andreas Kötter: Today’s consumers are used to informing themselves and making their own decisions. Also in relation to gambling, they will start to pay more attention in future to who is behind a product- and whether their expectations in terms of security of their data and consumer protection are fulfilled. At the WestLotto sales agencies and also on the web, we have an uncompromising commitment to player and youth protection. Our customers rely on the high quality and security standards of WestLotto. And our aspiration is to meet this trust time and again – whether people are playing online or at the agency round the corner. This commitment is, incidentally, also recognized by external experts. In 2015, the company was once again certified as compliant with the strict Responsible Gaming Rules of the …uropean Lotteries – for the third time since 2009. As a trustworthy state lottery company, this puts us at a clear advantage over private and illegal providers – and we will also score on this point again in future. ››› The 31st March 2016 saw a change at the top of WestLotto. After many years as CEO, you, Mr. Goßner, have handed over the baton to Andreas Kötter. He is now responsible for managing the company together with Christiane Jansen, a new appointee to the management. What will this change mean for the future direction of WestLotto?
Theo Goßner: The course we are already on – the sustainable positioning of WestLotto as a modern, leading provider of legal games of chance – will continue to be pursued with determination in future. I am confident that Andreas Kötter and Christiane Jansen will fulfil this task with responsibility and farsightedness, and I wish them both every success on the way into the future. Andreas Kötter: I am pleased that in Christiane Jansen we now have a highly competent and
experienced manager and lawyer on board. Together, we will make WestLotto fit to meet the challenges of the future – and set impulses in the debate over the structure and legal regulation of the German gambling market.
“The course we are already on – the sustainable positioning of WestLotto as a modern, leading provider of legal games of chance – will continue to be pursued with determination in future.”
“In 2015, the company was once again certified as compliant with the strict Responsible Gaming Rules of the …uropean Lotteries – for the third time since 2009.” Andreas Kötter
Theo Goßner, C…O of WestLotto for many years, left the company on 31 March 2016 to enjoy his retirement.
Business Report WestLotto 2015−25
Congratulation Telegrams
“WestLotto has brought millions of people happiness and gain. Social projects, too. Which just goes to confirm the old saying that shared happiness is doubled happiness. Many thanks and all best wishes!” Rainer Schmeltzer, NRW Minister of Labour, Integration and Social Affairs
“Developing sporting talents in NRW – supporting top trainers. For the collaboration with WestLotto, we would like to say “thank you” on behalf of all leading sportspeople in NRW and congratulate you most sincerely on your 60th birthday.” Jürgen Brüggemann, C…O of the NRW Sports Foundation
“North Rhine-Westphalia has a strong voluntary sector and great sportsmen and women, a diverse arts and cultural scene, many historical monuments, and not least the most wonderful scenery. All of that makes our state liveable and loveable. And WestLotto has been helping for 60 years to make sure it stays that way. Many thanks, and carry on with the good work!” Armin Laschet, Leader of the CDU political group in the NRW State Parliament
“60 years of WestLotto – that is 60 years of financial support for sport and culture, nature conservation and welfare in NRW. On this anniversary occasion, I would like to thank especially all those at WestLotto who are committed to helping refugees. Congratulations on your 60th.” Hannelore Kraft, Prime Minister of the State of NRW
HAPPY BIRTHDAY
“60 years of WestLotto – a good reason to celebrate! Not just for all those who have hit the jackpot or whose dream it still is to win it. But also because a great deal of good has been done in our state in the course of the last 60 years.” Christian Lindner, Leader of the FDP political group in the NRW State Parliament
“In NRW, over 520,000 members and voluntary workers support the German Red Cross, e.g. in the emergency and ambulance service or the care of old people. Thankfully, we can rely on WestLotto to help us.” Ludger Jutkeit, Board Member of the Westphalia-Lippe Regional Association of the German Red Cross
26−Business Report WestLotto 2015
WESTLOTTO For further birthday messages, go to www.jubi.westlotto.de
“For 60 years now, WestLotto has provided a platform for responsible gaming and been demonstrating social commitment by supporting important social, sporting and cultural projects. Congratulations!” Ralf Jäger, NRW Interior Minister
“Preserving Zollverein, the UNESCO World Heritage Site with its 65 buildings, is a task for a whole generation. The Foundation would like to congratulate WestLotto and say thank you for its support.” Hermann Marth, Chairman of the Board of the Zollverein Foundation
Congratulation Telegrams
“60 years of WestLotto – benefiting sport in NRW. Through its betting revenues, WestLotto helps to keep this state moving. Sports colleges such as Wedau or Hagen are also supported. Congratulations!” Christina Kampmann, NRW Sports Minister
“Many projects would have been impossible without the aid of WestLotto. For 60 years now, WestLotto has been supporting good causes. Congratulations and thank you!” Dr. Ulrich Schneider, C…O of the General Association of Paritarian Institutions
“On behalf of the five million members in some 19,500 clubs, we wish to thank WestLotto for its extensive support and express our sincere congratulations on its 60th anniversary.” Walter Schneeloch, President of the NRW State Sports Federation “Around 40 percent of stake money goes via the state budget to organizations that support our civil society. This is money that is well invested as it also has a preventative social and ecological function and makes our state more fit for the future. We wish you all the very best!” Johannes Remmel, NRW …nvironment Minister
“Dear WestLotto! Sincere best wishes on your birthday! Even after 60 decades, many people still try their luck with you week in, week out. Who else can say that of themselves at that age?” Manni Breuckmann, radio presenter and sports reporter
“Münster has always lived from enterprises that assume responsibility out of a sense of commitment to the public good. I would like to thank WestLotto and to congratulate it most sincerely on behalf of the city, the city council and the administration.” Markus Lewe, Mayor of Münster
“Since being set up in 1989, the NRW Arts Foundation has supported over 6,500 projects. Most of our funding comes from WestLotto. Thank you WestLotto, thank you NRW!” Dr. Fritz Behrens, President of the NRW Arts Foundation
With Lotto, it is not just the players who win: Lottery income also flows into the infrastructure, education, provision for the future and the public good. I congratulate you on 60 years of state Lottery activity and wish you good luck for the future.” Dr. Norbert Walter-Borjans, NRW Finance Minister
“WestLotto is an expert when it comes to matters of good fortune! It takes a great deal of commitment to preserve historic sites and buildings. WestLotto has been helping in that field for 60 years and has proved a really big chip. Thank you for that, and all best wishes!” Michael Groschek, NRW State Minister of Urban Development and Transport
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Commitment in Practice
Joining forces for people in need Taking on social responsibility has been part of WestLotto’s DNA right from the word go. This manifests itself not only in the funding for non-profit projects that is provided out of Lotto revenue, but also time and again in the shape of practical personal engagement by individuals. At the present time, for example, numerous employees are working to assist refugees as part of “Team Westphalia” (Team Westfalen), a campaign organized by the German Red Cross. Commitment that is also being actively supported by WestLotto: All staff members wishing to help on a voluntary basis were given two hours off per week in order to do so. 28−Business Report WestLotto 2015
Commitment in Practice
Working hand-in-hand for people in need: Together with Team Westphalia, WestLotto employees have supported the refugee aid effort. Sabine Horstmann-Rolf, Jörg Hessel, Ursula Peters, Andreas Kötter, Tale Sari, Behrouz Nassimi, Steffen Hagenkötter (from left)
No one had reckoned with numbers on this scale: More than a million refugees found their way to Germany in 2015 alone. People in acute dire straits, who were, and still are, dependent on speedy, practical support. From preparation of the accommodation and supplying food and drink, to the provision of medical care: aid organizations like the German Red Cross are in operation around the clock to aid the refugees, thereby relieving the burden on the local authorities. However, without the volunteer work of neighbours and other fellow-citizens, the many and varied tasks would be almost im-
possible to manage. Therefore, under the motto “Hand in hand for people in need”, the Westphalia-Lippe branch of the German Red Cross (“DRK”) brought “Team Westphalia” to life in 2015. The idea is that everyone can contribute their own particular abilities, interests and ideas, and also their personal time budget. The DRK structures and organizes the voluntary work – with teamwork allowing even more to be achieved. Motivating people to join in WestLotto, which has had its home in Münster, in the heart of Westphalia, for decades
The idea is that everyone can contribute their own particular abilities, interests and ideas, and also their personal time budget. and also has close links to the DRK, was immediately convinced by the “Team Westphalia” idea. There was spontaneous agreement between the management and works
Business Report WestLotto 2015−29
Commitment in Practice
council to proactively support the project. To motivate the people in the region to join in, the company supported the DRK appeal by, for example, displaying posters in the WestLotto sales agencies, media reports, and directly addressing the customers. “Projects of this kind have to be brought to the attention of the public,” says WestLotto CEO Andreas Kötter. “For it is only through frequent reporting that socially relevant issues of this kind receive the necessary awareness.” But as if that was not already enough, WestLotto itself decided to lead the way by setting a further good example. As a result, WestLotto employees who wanted to do something to help the refugees, were allowed to take two hours per week off work in the months of August and September 2015. WestLotto staff roll up their sleeves This offer was well received among the personnel. “I personally find it great to be able to say that I work for a company that demonstrates this kind of engagement,” says Steffen Hagenkötter, for example. A trainee at WestLotto, he decided, in the wake of an information event by “Team Westphalia”, to become involved in child care and support. Together with his fellow trainee Tale Sari, he regularly visited the emergence accommodation for refugees in the Wartburg School in Münster in order to do paint and crafts with the children, play football, and teach them their first words of German. A bridge-building (learning) experience for both sides. “One time I decided to make loom bracelets with the children,” Tale Sari remembers. “It turned out that I was about the only one who couldn’t already do it – so it was the kids who taught me!”
“I personally find it great to be able to say that I work for a company that demonstrates this kind of engagement.”
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Call to join in: Ludger Jutkeit of the German Red Cross and Andreas Kötter of WestLotto (on right) support the poster action in the WestLotto sales agencies.
Sabine Horstmann-Rolf and Behrouz Nassimi of the IT department also recount enriching human encounters and growing mutual understanding. In autumn 2015, the two WestLotto employees were organizing sports activities in the refugee accommodation where up to 220 people were temporarily housed. Behrouz Nassimi, who was born in Iran, was promptly addressed by an Afghani and asked how many months he had now been in Germany. 36 years was his reply. The readiness to help on the part of many WestLotto employees soon spread ripples throughout the workforce. As a result, many colleagues who were not themselves playing an active role contributed material donations. “The colleagues gave things such as curtains, towels, bedding, a sewing machine and also a bicycle trailer for transporting children,“ reports Jörg Hessel of the
That is also part of the WestLotto success story: a corporate culture that is characterized by values such as humanity, commitment and responsibility.
communication department, who together with his wife supports several families from Syria and West Africa. That is also part of the WestLotto success story: a corporate culture that is characterized by values such as humanity, commitment and responsibility. And employees who make their own personal contribution to fostering positive social development.
