Tipp24 AG: Tipp24’s online lottery brokerage still allowed in Berlin

Sep 24, 2008 12:30 PM

Tipp24 AG / Miscellaneous

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Company’s first-leg victory against new State Treaty on Gaming

At the Administrative Court of Berlin, Tipp24 AG has recorded an important
victory in its fight against the new State Treaty on Gaming. The
Administrative Court decided against the federal state of Berlin, stating
that the central regulations of the State Treaty on Gaming did not apply to
commercial lottery brokers such as Tipp24 as they contained excessive
restrictions with regard to the freedom to provide services.

This applies explicitly also to the time after 1 January 2009. According to
the new State Treaty, which came into effect on 1 January 2008, online
lottery brokerage is to be completely forbidden from this date onwards.

The decision is the first verdict achieved by Tipp24 in principal
proceedings of an administrative court and thus of particular importance
for Tipp24. Following the administrative court’s verdict, Tipp24 still does
not require state permission in Berlin for the brokerage of state lotteries
with no more than two weekly draws. The obligation to seek permission and
the banning of online lottery brokerage were not compatible with the
freedom to provide services. Moreover, the court judged that the legal
requirement stating that lottery tips may only be submitted to the lottery
company of the federal state in which the player was located when
submitting the tip was disproportionate and inapplicable. Finally, the
court also declared that the legal restrictions placed on Tipp24’s
advertising inside and outside the internet contravened valid law. Tipp24’s
business model of receiving commission fees from state lotteries also
remains permissible: the prohibition of commission in Berlin’s law has no
legal validity (Administrative Court of Berlin, Case Number VG 35 A 15.08).

Jens Schumann, Chairman of the Executive Board, states: 'This is a good day
for Tipp24. Our strategy of seeking legal protection against the State
Treaty on Gaming as early as possible has paid off. The first principal
proceedings of an administrative court regarding lottery brokerage since
the State Treaty on Gaming came into force has already confirmed in full
our opinion. This precedence case will strengthen our position in coming
proceedings, especially with regard to temporary legal protection. The
court’s verdict also identifies a sensible compromise solution, which
should now be adopted by the other federal states and quickly implemented:
products which can also be sold at a lottery agent’s shop without any
special restrictions, such as an identification card, should also continue
to be available via the Internet. This is also in the interests of the
state lottery operators’ revenues, which profit from online lottery
brokerage – Tipp24 alone brokered over 300 million euros for the state
lotteries last year. Moreover, the technical possibilities available mean
that the required gambling and youth protection measures can be guaranteed
better via the Internet than at a lottery agent’s shop.'

Tipp24 AG was represented by Dr. Masing, Redeker Sellner Dahs & Widmaier,
Berlin. The federal state of Berlin can still appeal against the verdict.

About Tipp24 AG: Tipp24 was established in 1999 and is now the market
leader for lottery products in the Internet on the basis of billings. The
company succeeded in achieving impressive growth rates right from the
start. Almost all state lottery products are supplied. It only takes a few
mouse clicks to buy a lottery ticket – round the clock, quickly and
reliably. The ticket receipt is kept safely, winners are notified about
their prizes automatically by text message and e-mail and prizes are
credited automatically. Subsidiaries of Tipp24 (www.tipp24.de) are
Ventura24 in Spain (www.ventura24.es), Puntogioco24 (www.puntogioco24.it)
in Italy and MyLotto24 (www.mylotto24.co.uk) in the UK. Shares in Tipp24 AG
have been traded at the Frankfurt Stock Exchange since 2005.

Tipp24 AG   
Kerstin Mork   
Media and Public Relations   
Tel.: +49 40 32 55 33-661
Fax: +49 40 32 55 33-5600   
E-mail: presse@tipp24.de   
Internet: www.tipp24.de/presse/

24.09.2008  Financial News transmitted by DGAP
Language:     English
Issuer:       Tipp24 AG
              Straßenbahnring 11-13
              20251 Hamburg
Phone:        +49 (0)40 325533-0
Fax:          +49 (0)40 325533-77
E-mail:       office@tipp24.de
Internet:     www.tipp24-ag.de
ISIN:         DE0007847147
WKN:          784714
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of News                                     DGAP News-Service