THE GAMES MAKERS | GAUSELMANN
Annual Report of the Gauselmann Group 2015 1 THE GAMES MAKERS | GAUSELMANN Gauselmann Group – Key figures Philosophy
€ million 2015 2014 We are an internationally active family-owned company, committed to providing leisure-time Volume of business 2,213 1,942 entertainment and gaming fun with small stakes and prizes, being always true to our motto “More 1,286 Sales (fully consolidated) 1,459 than a game”.
– of which in Germany 786 725 Our core competences – content, technology and operating – enable us at all times to offer top- – of which international 673 561 quality games anywhere and at any time based on the respective legislative framework.
We stand for responsible gaming – the latest in- Economic equity 688 611 sights into prevention and consumer protection – of which shareholders’ equity 651 559 continually flow into our product range. Alongside our products, our employees play a – of which deposits 37 52 major role in ensuring that our entire offering sets high benchmarks.
Investments 186 187
Workplaces at year’s end 9,240 8,458 We are (full-time equivalents) 7,651 6,848
– of which in Germany 6,135 5,789
– of which international 3,105 2,669
– of which temporary employment 360 358
– of which apprentices and trainees 187 218
www.gauselmann.de
2 THE GAMES MAKERS | GAUSELMANN 3 3 Contents
Gauselmann Group – Key figures...... 2 New Media business segment
Philosophy...... 3 Online gaming...... 51
To our business partners...... 6 Financial services...... 53
Gauselmann Family Foundation ...... 10 Sports betting...... 54
Merkur Division business segment Prevention...... 56
Development, production and sales of Employees and training...... 60 amusement and gaming machines and money management systems in Germany...... 16 Corporate commitment to the region...... 64 Development, production and sales of amusement and gaming machines and money management systems internationally...... 22 Outlook on the business development...... 68
Cash and ticketing activities...... 26 Management Board...... 71
Research and development...... 32 Supervision and advice...... 72
Spielothek Division business segment Supervisory Board...... 73
Operation of entertainment centres in Germany...... 36 Publishing details...... 74
Operation of entertainment centres internationally...... 42
Operation of casinos...... 46
4 THE GAMES MAKERS | GAUSELMANN 5 To our business partners
Shaping the future
Shaping the future. Under this motto, we from try. And this is precisely what happened just the entrepreneurial family unanimously de- recently with the “M-BOX” and the best choice cided to pool 100 per cent of the company’s of games. Our latest gaming machine brand is shares in the newly founded Gauselmann already enjoying huge demand. Family Foundation. By setting up the Family Foundation on 18 December 2015, my family We are especially pleased that the “M-BOX” and I expressed the wish to ensure that the concept is also working very well in many entire corporate group continues to be run in the foreign markets, for example in Spain, the UK future as an economically stable family busi- and South America. Quality “made in Germany” ness – even though this means giving up our and “made by Merkur” is enjoying increasing direct shares. We want to safeguard the com- popularity. This benefits our main production pany’s existence not just for the next few years, site in Lübbecke where we manufacture amuse- but also for generations to come. We explain in ment and gaming machines for clients from all more detail our rationale and goals, as well as over the world. Lübbecke acts as a central hub how the foundation is organised, in this report. for our numerous international development bureaus – from Australia to the USA. Every day Shaping the future – this also applies to nu- 500 games developers are working around merous other strategic policy choices taken the globe on creating the games of tomorrow. in 2015; from our corporate structure and our Our games library in the meantime comprises three business segments, the Merkur Division, several hundred games that are increasingly in the Spielothek Division and New Media, to our demand, also online and mobile. employees and our commitment to our home region. We optimise, invest and show commit- Shaping the future – this also includes our ment – always with the goal to do even better. new casinos in Saxony-Anhalt and Berlin. For the first time, we have been granted licences Given the challenging legal environment in our to operate public casinos in Saxony-Anhalt. home market in Germany with its many re- This has resulted in Germany’s most modern strictions, this goal may at first glance not seem casinos, with a concept that has worked very easy to achieve. We are facing the threat of im- well since the outset. We are also continuously pending arcade closures from 2017 and, hand developing the operator concepts for our 500 in hand with this, a significant decline in the state-of-the-art entertainment centres in overall market. What do you do when the mar- Europe, around half of them in Germany. ket shrinks, bringing with it fierce competition? However, the underlying objective is the same The answer is simple: our products must be as it was 40 years ago when the first CASINO first choice among gaming machine operators MERKUR-SPIELOTHEK opened in Delmenhorst: and arcade operators and our games and slot we want our guests to feel as much at home as machines must set benchmarks for the indus- in a good 4-star hotel.
Paul Gauselmann 6 THE GAMES MAKERS | GAUSELMANN 7 To our business partners
This approach still works today because it re- Shaping the future – with our staff. They are our As a family of entrepreneurs, we will continue lies on quality. Day after day, we welcome and company’s most vital asset and the ones who in future to do everything in our power to move escort countless satisfied guests. This is also ensure the success of our products and services our company forward in national and also in- confirmed by various endorsements such as the on a day-to-day basis. We are always keen to creasingly in international markets. However, “Top Service” seal awarded by the Handelsblatt recognise and promote motivated, highly-quali- we will also do everything we can to fight newspaper or recognition as the “most popu- fied employees by offering them the option to against the injustices in Germany caused in lar gaming arcade” by Focus Money, that we participate in a variety of training and further part by the prevailing competitive mentality of recently received. education measures. Each year, we also offer a individual federal states. We will continue to large number of young trainees vocational train- participate in political negotiations, and where Shaping the future – with sports betting from ing in various different professions. And our that fails to achieve the desired results, have XTiP and Cashpoint. Through the acquisition success speaks for itself – once again in 2015, recourse to legal and corporate action in order of the Austrian company Cashpoint, we have a Gauselmann Group trainee was honoured by to take the Gauselmann Group forward into a been active in the sports betting market since the Association of Chambers on Industry and successful future. 2005. Today, we operate in the sports betting Commerce (DIHK) as Germany’s best training markets of Austria, Denmark, Belgium, the UK graduate. Yours sincerely, and Germany – in the latter two countries with our new sports betting brand XTiP. The goal as Our 2015 Business Report shows that with our a domestic company is to play a leading role forward-looking strategy we are definitely on in the German market. We feel confident that the right track. The total business volume grew the company is more than well-positioned to by around 14 per cent to 2.21 billion euros. Fully achieve this ambitious goal. consolidated sales increased to 1.46 billion euros – 173 million euros higher than in the Shaping the future – with gaming offerings on 2014 financial year. Hand in hand with this, the the Internet. Online casinos are gaining in popu- number of employees rose in the same period larity internationally. More and more countries by 782 games makers to total 9,240. are moving to legalise online gaming and give the many online players legal protection. In My personal proudest moment in 2015 was the the Gauselmann Group, we took over the busi- granting of honorary citizenship to my wife, ness of an online casino software provider Karin, by the town of Espelkamp. Not only is some time ago and continued developing its Karin my closest adviser; she has also for years high-tech solutions. We also run our own online been actively engaged in safeguarding the wel- casinos in licensed and regulated markets, for fare of the citizens of Espelkamp and beyond. example in Italy, the UK and Spain, as well as Another milestone for me and my family in the in Schleswig-Holstein, the only one of the 16 past year was the completion and official in- federal states in which licences for online ga- auguration of Schloss Benkhausen as the trai- ming has been granted. ning and education centre for the Gauselmann Group.
8 THE GAMES MAKERS | GAUSELMANN 9 Gauselmann Family Foundation Shaping the future
Apart from the company’s founder, Paul As sole shareholder of the Gauselmann Group, Gauselmann’s four sons have also played an the Gauselmann Family Foundation will in fu- active role in building the group’s commer- ture take the key strategic decisions needed to cial success. In the 1980s, Peter Gauselmann, assure the group’s ongoing commercial success his eldest son and a computer science gradu- and determine its strategic orientation. The ate, was entrusted for ten years with building Foundation’s Advisory Board and the Founda- up the company’s IT department – today BEIT tion’s Board of Directors are made up predom- Systemhaus GmbH. Business Studies graduate inantly of family members so as to demon- Michael Gauselmann joined the group in 1982 strate an unequivocal and enduring commit- directly after completing his studies. He played ment on the part of the Gauselmann family to a major role in driving the group’s international- the company and the region. isation in the early 1990s. Armin Gauselmann, also a Business Studies graduate, joined the Transferring the shares of the current sharehold- company’s Management Board in 1997, and, ers of the Gauselmann Group into the Family in addition to Human Resources and Real Es- Foundation precludes the risk of the company tate, is currently responsible for the “Deutsche becoming fragmented if one owner were to sell Automatenmuseum” (German Coin-Op Mu- his or her shares at any future point in time and seum) at Schloss Benkhausen. Alongside his ensures the company will continue to be run in mother, Karin Gauselmann, he is a member its present form. The creation of the Foundation of the Board of Trustees of the Paul and Karin also protects the company against unforesee- Gauselmann Foundation. Karsten Gauselmann able financial burdens that could be triggered was for many years responsible for the Gausel- by the sudden death of shareholders. mann Group fleet of over 1,000 vehicles. Today he works as a hotelier and continues to sup- In addition to the companies within the Gausel- port the group as a member of the Supervisory mann Group and their employees, this sustain- Board. able Family Foundation will also benefit a var- iety of cultural and social projects in and around 2016 marks one of the most important mile- the Altkreis Lübbecke district. stones in securing the future of the Gauselmann Group. In order to guarantee the continued Thus the Paul and Karin Gauselmann Foundation existence as a corporate group for the coming with an endowment capital of 10 million euros generations, the Gauselmann Group founded will in future, within the scope of the planned by Paul Gauselmann in 1957 has operated annual dividend payment, receive the same since 1 January 2016 under the mantle of the financial support from the Family Founda- Gauselmann Family Foundation. With this step, tion as each of the four lines of the family, the Gauselmann family of entrepreneurs is pav- made up of sons Michael, Armin and Karsten The shareholders of the Gauselmann Group have transferred their shares to the Gauselmann Family Foundation. From l. to r.: Armin, Karin, Karsten, Paul and Michael Gauselmann ing the way for the Gauselmann Group’s long- Gauselmann and the daughters of the eldest term and stable future as an employer and son, Janika and Sonja Gauselmann. driving force for the economy.
10 THE GAMES MAKERS | GAUSELMANN 11 Gauselmann Family Foundation Milestones of the Gauselmann Group
Revenue Employees Year Revenue Employees Year
1950 Training as telecommunications inspector at the company DM 1.4 bn approx. 3,600 1993 Foundation of the Atronic subsidiary, managed by “Telefonbau und Normalzeit” son Michael 1953/54 Inspector for telecommunications, emergency call and VAT: multiplier raised from 1.5 to 3 telephone systems DM 1.5 bn approx. 4,200 5 May 1994 2nd birth hour of the industry: European Court of Justice 12 March 1956 Move to Coesfeld as service technician for general abandons 3x VAT, return to 1x taxation importer of Wurlitzer jukeboxes DM 1.7 bn approx. 5,100 1998 Atronic subsidiary receives manufacturing licence for Summer First invention: US state of Nevada (Las Vegas) 1956 Remote selection box for a German jukebox Only European company with a US licence 1 December Against this background move to Espelkamp to the 1956 development department for slot machines at Harting DM 2 billion approx. 5,200 2001 Revenue tops DM 2 billion for the first time DM 30,000 1 May/June Part-time work as jukebox operator initially with EUR 930 m approx. 5,100 2001/2002 Conversion to euro: around 200,000 amusement 1957 17 Bergmann jukeboxes built at Harting machines with and without prizes are converted to euros by the Gauselmann Group alone With no equity capital of his own, with a crossed bill of exchange for DM 100,000 with 24 monthly instalments EUR 1.2 bn approx. 5,600 2005 Foundation of the companies Merkur Casino and Merkur Gaming. Controlling stake in the company Cashpoint DM 465,000 15 October Full entrepreneurial independence, jukebox operator, 300 Sportwetten and entry into the sports betting market 1964 machines in the catering sector, production of accessories
for the industry EUR 1.5 bn approx. 5,500 2006 After 53 years, a new Gaming Ordinance is introduced that
takes account of modern technology For example key safes and 2,500 DIY jukeboxes (“Das neue Kleid” – “the new outfit”) EUR 1.6 bn approx. 5,700 2007 50 years of Gauselmann DM 1 million 25 1966 Revenue tops DM 1 million for the first time EUR 1.3 bn approx. 5,300 2008 Acquisition of the company edict eGaming from the casino company Jahr (Gruner und Jahr) DM 4 m/ approx. 70 1969/1970 Foundation of the wholesale company Gauselmann DM 7 m automaten center in Espelkamp Disposal of Atronic DM 16 m approx. 200 1972 Idea and start of development of a proprietary gaming 2010 Acquisition of Schloss Benkhausen and conversion into machine a modern conference hotel (completion 2015) Foundation of adp Automaten GmbH in Espelkamp EUR 1.8 bn approx. 6,400 from 2012 500 gaming arcades Europe-wide, start as licensed sports betting and online casino provider in Schleswig- DM 22 m approx. 380 1974 Opening of the first arcade in Delmenhorst Holstein DM 36 m approx. 550 December The “Merkur B”, the first proprietary AWP machine, is li- 2012 Acquisition of the British arcade chain Praesepe with 170 1976 censed by the Physikalisch-Technische Bundesanstalt (PTB) entertainment centres and bingo clubs as well as 1,500 employees; largest acquisition in the company’s DM 230 m approx. 1,300 1980 Foundation of Zentralverwaltungsgesellschaft mbH history DM 230 m / approx. 1,500 1980/1981 Acquisition of the company Nova Apparate (slot machine EUR 1.9 bn approx. 8,100 2013 First casino licence in Saxony-Anhalt DM 440 m imports) over over 9,000 2015 Proportion of equity is more than 60% DM 470 m approx. 1,700 1983 Expansion costs money: DM 16 million public guarantee EUR 2.1 bn from North Rhine-Westphalia 46% of revenue is generated outside Germany DM 720 m approx. 2,000 1985 The Gauselmann Group achieves a market share in 31 December Transfer of the entire corporate group to the Gauselmann Germany of 50% with gaming machines 2015 Family Foundation DM 1 billion approx. 2,700 1987 Revenue tops DM 1 billion for the first time May/June 60 years of Gauselmann 2017 DM 1.6 bn approx. 3,200 1990 Gauselmann Zentralverwaltung, Espelkamp, is converted into a public limited company and starts to operate under the name Gauselmann AG
Sales in the new federal states
12 THE GAMES MAKERS | GAUSELMANN 13 Gauselmann Family Foundation Shaping the future
GAUSELMANN GROUP 2015 100% family-owned
Paul Gauselmann Karin Gauselmann 25% 25% Michael Gauselmann Armin Gauselmann Karsten Gauselmann 25% 12.5% 12.5%
Effective 31 December 2015 irrevocable transfer of all shares to the Foundation
From 1 January 2016 GAUSELMANN FAMILY FOUNDATION The Family Foundation is managed by the Foundation Board of Directors, whose Chairman is Paul Gauselmann, with his son Armin Gauselmann as Deputy Chairman. The third member of the Board is Manfred Stoffers. Board of Directors: Paul Gauselmann, Armin Gauselmann, Manfred Stoffers
Advisory Board: founders, four family lines and three external associates
Games and games Games and software software development 500 entertainment centres development Development, production and approx. 50% in Sales of games and machines sales of gaming machines at GERMANY the Lübbecke location, approx. 50% in Espelkamp headquarters EUROPE WORLDWIDE NATIONAL
Sports betting bricks-and-mortar/Internet Online gaming
INTERNATIONAL/ INTERNATIONAL/ WORLDWIDE WORLDWIDE
The Foundation Advisory Board comprises not only members of the founding generation and their direct successors, but also members of their grandchildren’s generation. Alongside sons Michael, Armin and Karsten Gauselmann, the daughters of the eldest son, Janika and Sonja, as well as three close associates of the family, also have a seat and vote on the Advisory Board.
14 THE GAMES MAKERS | GAUSELMANN 15 Merkur Division
“2015 was characterised by a pioneering Despite these tougher market conditions, in a approval in compliance with Technical Direct- cabinet innovation, the development, market environment with seven players adp ive 5.0. Here, too, adp Gauselmann GmbH has Gauselmann GmbH managed to hold on to taken on a pioneering role. It already offers its production and sales of which has kept its market share of over 50 per cent and con- customers a practical and inexpensive TD 5.0 tinues to defend its market leadership. One of solution for all “Merkur Ideal” and “M-BOX” ma- us mentally occupied for four years: the the main pillars of adp Gauselmann GmbH’s chines currently on the market. business activities in Germany is the games “M-BOX”. The cabinet always with the offering for the bars and restaurants segment. adp Gauselmann GmbH is the first company best games sets new benchmarks in With a market share of around 70 per cent, the in the gaming sector to have been endorsed company is represented throughout Germany with the three DIN EN ISO 9001:2008, DIN EN the gaming world.” in this segment. ISO 14001:2004 and BS OHSAS 18001:2007 cer- tificates, which attest to globally recognised standards in the fields of quality management, Jürgen Stühmeyer, Management Board member environmental management and occupational health and safety management. Regular audits carried out by TÜV Rheinland officially confirm the high standards the company sets itself.
Development, production and sales of amusement and gaming machines and money management systems in Germany adp Gauselmann GmbH For adp Gauselmann GmbH, the 2015 finan- cial year was characterised by a pioneering cab- German market leader adp Gauselmann GmbH the First Amended Interstate Gambling Treaty inet innovation, the development, produc- has been a pioneer of innovative cabinets, an and the ensuing limitations of the state arcade tion and sales of which has kept the company unbeatable range of games, reliable technol- laws, with extended closing times, state-spe- mentally occupied for four years: the “M-BOX”. ogies and a comprehensive services portfolio cific entry controls, etc., and the non-smoker The result is a sophisticated concept that sets for over four decades. The company is one of protection legislation, as well as the continuous new benchmarks in the gaming world. With its the major players in the industry in both the burden of amusement tax increases. Conse- two tablet-style monitors, the “M-BOX” is the national and international arena. quently, the German arcade market experi- perfect fit for the “Apple” generation. The enced a downward trend for the first time in At the end of 2018, manufacturing companies modern cabinet is the German version of the Commercial gaming in Germany currently faces 2015. will face a new challenge following adoption “Avantgarde SLT” and the “Aurora”, which the massive restrictions. The German gaming ma- of the new Gaming Ordinance, with the Phy- Gauselmann Group markets internationally and chine industry is clearly feeling the impacts of sikalisch-Technische Bundesanstalt (PTB) type in the UK. Practice has shown that the modern
16 THE GAMES MAKERS | GAUSELMANN 17 Development, production and sales of amusement and gaming Merkur Division machines and money management systems in Germany
nische Bundesanstalt (PTB) for gaming arcades Towards the end of the 2015 business year, adp merkur service also provides sophisticated in Germany. With its real ball, which is rolled adp Gauselmann GmbH went online with the and user-friendly solutions for its customers in into the rotating, similarly real bowl using com- new Merkur Insider platform, a training and the area of modern money processing tech- pressed air, “Merkur Roulette” offers all the fun information platform for arcade staff. Here, nology. The “Merkur Dispenser 100” and the and fascination of this popular casino game. service staff and amusement machine op- follow-up model “Merkur Dispenser 100 Gold” erators can browse up-to-date product infor- have written a real success story over the past adp Gauselmann GmbH has the biggest choice mation and videos about the adp innovations eight years. With over 120,000 units sold, this of cabinets on the market for operation in the and multigamer fundamentals, and then test modular banknote recycler has become one of bar and restaurant segment. Under the “Merkur what they have learned in a knowledge quiz. the mainstays in the slot machine expert’s port- Multi” brand, the company is constantly de- folio. Almost all Gauselmann Group products veloping new ideas for games packages for the For 2016, adp Gauselmann GmbH intends to are equipped with the “Merkur Dispenser 100”, hospitality sector. In 2015, “the games makers” stick to its tried-and-tested strategy and pre- which in combination with the “Elevator” for once again demonstrated their talent when sent its customers and business partners with coins and the “Scale Hopper” forms a perfect trio. it comes to transferring theory into practice, practical innovations that comply with the among other things with the innovative “Merkur current Gaming Ordinance. One important pil- The company met the new legislative chal- Multi Mix” package. “Merkur Multi Mix” allows lar will be the market penetration of the new lenges in the bar and restaurant sector that amusement machine operators to compile an “M-BOX” and the rollout of new versions. The came into force in 2015 in an exemplary man- In 2015, adp Gauselmann GmbH set new standards for youth protection with the remote individual and variable games package that can company will continue to focus on high-quality ner. From 10 November 2015, all AWP machines control for the hospitality sector. In spring 2016, the company introduced another con- venient solution with the “docu reader”. be optimally adapted to the respective location. games. in bars or restaurants in Germany must be fitted with a technical security feature for the protec- design appeals particularly to women. But from Apart from modern cabinets, the heart of the adp tion of minors. In addition to the familiar adp a technical point of view, too, the latest adp cab- business model is the range of exciting and di- adp merkur service card system, which has been standard on all inet also delivers essential improvements in versified games. In 2015, the company launched Merkur machines since 2006, and the compat- terms of ergonomics and player comfort. The 20 newly developed games. The top game Practice-oriented, competent and solution-ori- ible gastro card for the protection of minors, “M-BOX” celebrated its premiere in July 2015 at of the year in 2015 was the three-reel “Magic ented – these are the attributes that adp adp Gauselmann GmbH is now offering custom- the working group meeting of the Merkur Ad- Monk Rasputin” game. Furthermore, with its merkur service stands for. Alongside main- ers a further option for youth protection with visory Board, the central advisory committee of “My Top Game” feature included as standard tenance and service of coin-operated gaming the remote control for the catering sector. In the Gauselmann Group, composed of the most in all Merkur-Magie De-Luxe games packages machines, the service provider also offers spring 2016, the company launched a conveni- important clients of the German gaming ma- and the Pur-Plus versions of the “M-BOX”, adp its customers a comprehensive range of ac- ent new solution in the form of the docu reader. chine industry, in Barcelona – with a bespoke Gauselmann offers access to a globally unique cessory products, an extensive seminar pro- version for the Advisory Board clients. games library of over 200 games. Over 90 per gramme, technical support with the help of cent of all “M-BOX” machines currently on the practical tools such as the “Little Helper” app, Shortly afterwards, the cabinet had its official market are equipped as Pur-Plus versions and as well as a nationwide network of service market launch at the industry summit with a therefore have the “My Top Game” feature. technicians within the “free&easy” system. sit-down and a stand-up model in as many as six different versions. Under the motto “Sus- The high brand recognition of the “Merkur tainably good! – Industry 4.0”, the company Magie” and “M-BOX” brands is the result of pro- showcased the industry’s future to customers fessional brand management. With 100,000 at the industry summit in Frankfurt’s Congress fans already registered on the Merkur-Magie Centre in September 2015 for the sixth time Facebook page, the popular Merkur-Magie app in a row. As well as selected product presen- with almost three million sessions and the adp merkur service focuses on informative training, for example at the technology seminar tations, the traditional event presented talks equally popular Merkur-Magie Event portfolio and discussions with guests from the worlds are further confirmation of the concept’s suc- of business, industry and science, as well cess. For this cabinet, adp Gauselmann GmbH as an attractive entertainment programme. decided to opt for a new brand with informa- tion at the point of sale, a bespoke home- In early 2015, adp Gauselmann GmbH launched page and Facebook site, app and promotional an innovative approach for German arcades and articles to promote the innovative “M-BOX” targeting new customer groups with “Merkur in external communications and offer clients Roulette”. It is the first and so far only company another possibility to extend their offering. to bring the casino classic roulette onto the mar- ket with a licence from the Physikalisch-Tech-
18 THE GAMES MAKERS | GAUSELMANN 19 Development, production and sales of amusement and gaming Merkur Division machines and money management systems in Germany
Schneider wholesale company
For over 30 years, the wholesale company centres. These machines with their special jack- Schneider Automaten has been meeting the pot features have contributed substantially to needs of AWP machine and arcade operators. the company’s business success. For an add- The sales partner of adp Gauselmann GmbH itional stake, players have the chance to play ex- is the largest full-range supplier in the realm citing feature games and win more prizes. With of amusement and gaming machines and, in “Deal or No Deal”, MEGA will launch the third addition to the full adp range, also sells other package in the single jackpot series in 2016. well-known brands at its nine branch offices. In the 2015 financial year, Schneider Automaten MEGA has achieved considerable success ventured into a completely new field of activity with its “Monopoly” and “Seven” games cen- with the marketing of “RadikalDarts”. These are tres in the international arena, too. They electronic dartboards equipped with cameras, are marketed by the foreign subsidiaries of lasers and sensors that display the games on a the Gauselmann Group, for example Merkur monitor. Automatic exchange of all information Dosniha for the Spanish market. MEGA has with a central server allows players around the achieved similar successes in the Nether- world to compete against one another. Over lands and the Czech Republic with its “Games 2,000 of these advanced dartboards have al- Unlimited” multigame line. In the Nether- ready been sold in the German market, lands, the “Games Unlimited” multigamers and there is still plenty more potential to be are amongst the most popular in the country. Commercial gaming in Germany is faced with Furthermore, since 2011, adp merkur service has exploited. constant new challenges as a result of differ- been able to draw on the advice of the Techni- ing arcade laws in the various federal states. cal Merkur Advisory Board as an important in- Merkur Freizeit Leasing (MFL) Since July 2013, for example, arcade oper- strument to promote the exchange of ideas. MEGA Spielgeräte ators in the state of Hesse have been required Merkur Freizeit Leasing GmbH is the Gausel- by law to carry out entry controls and to syn- Gauselmann Großhandel MEGA Spielgeräte Entwicklungs- und Ver- mann Group’s manufacturer financing company chronise the data with the state-wide OASIS triebsgesellschaft mbH & Co. KG specialises in and the leading financial services provider in blacklist. adp merkur service has installed the the development of jackpot systems, multi- the gaming machine industry. MFL’s range ex- Merkur Check-In entry control system in nu- adp Gauselmann GmbH offers its customers game lines, games with additional stakes, tends from attractive rent, leasing and licensing merous arcades since 2013, making it current- support nationwide through its own sales as well as multigamers for the Dutch mar- models to insurance concepts and the Merkur ly the most widely used system in Germany. organisation, Gauselmann Großhandel. With a ket and the development of concepts for sun bonus scheme, which pays off for every network of 11 branches, Gauselmann Großhan- the Czech market. Developed in Limburg an customer. Offering rental models that do not Rollout of the management software Merkur- del provides intensive supervision and applica- der Lahn, the products are produced at adp impose a strain on liquidity, the company en- NET was another major step for adp merkur ser- tion-specific guidance. Gauselmann GmbH’s Lübbecke production ables its customers to make important invest- vice moving forward in 2015. This networking site in accordance with ISO 9001 standards. ments in growth and expansion without having solution made by Gauselmann can be custom- Via the adp Internet portal, adp custom- to sacrifice ongoing product innovations and ised to meet the requirements of amusement ers can also take advantage of the product In particular the “Seven” games centre, the high quality. arcades or catering establishments and was and service offerings of the entire Gausel- first of its kind with seven jackpots, has en- endowed with numerous new features and mann Group. Sales staff are offered regu- abled MEGA to consolidate its position as a pre- MFL was the first company in the industry to functions in the past business year. With the lar training courses, thus guaranteeing a high mium supplier to the German gaming arcade introduce digital contracts. As well as paperless help of MerkurNET, operators can optimise or- level of advice and service quality. market. This successful product is available as customer communication, this new digital era ganisational structures and enhance efficiency. a four- or two-machine unit. In the past two also includes sending monthly invoices electron- The management software makes it possible to Gauselmann Großhandel underscored the im- years, the “Seven” games centre in combin- ically. MFL will celebrate its 30-year company control all machines, identify and quickly rem- portance of customer proximity once again ation with the “Merkur Ideal Vision Slant Top jubilee in 2016. edy defects at any time and from anywhere. in 2015 with regular customer events such as SL” cabinet has proved to be one of the group’s in-house trade fairs held in winter, spring and top products and a cornerstone of MEGA’s suc- autumn at the Gauselmann Großhandel branch cess. The games centre is also making an ap- offices and other venues. pearance in more and more German casinos. MEGA followed on from this success in 2015 with the “Explosion” and “Chip” single jackpot
20 THE GAMES MAKERS | GAUSELMANN 21 Merkur Division
Development and sales of amusement and The Gauselmann Group has been active in in- markets. Apart from Europe, the core markets ternational gaming and prize games markets were mainly North, Central and South America, since 1985 and during that time has become where the company saw a significant rise in gaming machines and money management systems a global driving force of innovation. The group sales activities in 2015. Merkur Gaming was stands out for its high degree of adaptability also active on the African continent in 2015. internationally to country-specific product requirements, dif- ferent legal and social parameters, as well as With the subsidiaries Merkur Gaming Peru, local market characteristics and gaming habits Merkur Gaming Mexico and Merkur Gaming Merkur Gaming in the corresponding sales markets. To this end, Colombia, adp Gauselmann GmbH is ideally the company maintains a continuous dialogue positioned in South America both organisation- with customers, playing guests and developers. ally and in terms of infrastructure. Following liberalisation of the Argentinian market, the As part of the consolidation of its business activ- groundwork is being laid for entry into the mar- ities, adp Gauselmann merged with its Merkur ket and the founding of a new national subsidi- Gaming GmbH subsidiary in 2015, which is re- ary there in 2016. sponsible for the marketing of multigamers for the international markets. This did not impact At the beginning of last year, a separate sales on the internationally recognised brand iden- organisation, Merkur Gaming Americas, was tity of Merkur Gaming. As a structural conse- established, with responsibilities for business quence, a new management team was estab- activities in North, Central and South America, lished under Sales Director and Management as well as in the Caribbean market and also in Board member Jürgen Stühmeyer for develop- the cruise line business segment. In 2016, the ing the international markets. company will also set up its own development unit in Las Vegas that will first and foremost de- Development, production and sales of amuse- velop for the American market time-on-device ment machines, casino slot machines with games with a high entertainment factor. prizes, as well as video lottery terminals (VLTs), server-based gaming (SBG) systems and jack- One of the main success factors for internation- pot solutions for the international gaming and al sales in 2015 was the revolutionary “Avant- prize games markets is the responsibility of garde SLT” cabinet. Sold in Germany under the adp Gauselmann GmbH. So as to be closer to name “M-BOX”, this full-HD multigamer was the player base, some of the games for the also launched into the international markets international markets are designed decentral- in the last financial year under the product ly in the respective countries. All products are name “Avantgarde SLT”. This modern cabinet is manufactured by adp Gauselmann GmbH at its especially popular in Mexico and Romania. It production plant at the Lübbecke headquarters is planned to roll out the “Avantgarde SLT” into in accordance with the internationally applic- further markets in 2016. able high quality standards for development, manufacture and sales as set out and defined Another milestone was the presentation, at by DIN EN ISO 9001. the G2E industry trade fair in Las Vegas, of the group’s first upright cabinet for international ca- Through Merkur Gaming and its subsidiaries sino markets at the G2E industry trade fair in in the UK and Spain, adp Gauselmann GmbH Las Vegas. The Gauselmann Group will comple- was able to strengthen and further expand its ment its product portfolio in this segment with position in the global competitive arena in the “Merkurstar” in the future. Like the “Avantgarde 2015 business year. As in the previous year, the SLT”, the “Merkurstar“ is renowned for its futur- strategic goal was first and foremost to consoli- istic design and full-HD technology. date activities and concentrate on defined core
22 THE GAMES MAKERS | GAUSELMANN 23 Development, production and sales of amusement and gaming Merkur Division machines and money management systems internationally
In the Netherlands, the Gauselmann Group coordinate the British business activities within achieved market leadership in the video-based the Gauselmann Group from the central office multigamer segment in 2015 with the “Games of the General Manager UK. The aim of this step Unlimited” multigame line. The group inten- is to optimise communication and the flow of sified trade relations with a Dutch distributor information between the subsidiaries and with that had already included products from the Germany and create additional synergies. GeWeTe subsidiary in its portfolio, and made it the general distributor for the Gauselmann The Gauselmann Group has successfully es- Group in the Dutch market. The good partner- tablished itself in just a few years as industry ship and systematic market penetration leader in the Spanish arcade segment with its enabled the group to further enhance its Merkur Dosniha subsidiary. Merkur Dosniha is market presence. responsible within the group for the develop- ment and sales of multigamers in Spain. The The Gauselmann Group further strengthened end of the 2015 business year saw the prom- its presence in the British market and achieved ising entry into the Spanish catering sector with an excellent operating result in the UK in 2015. the “Genie” cabinet in combination with the In the meantime, well over half of the multi- “Merkur Multi” games package. The absolute Merkur Gaming at the ICE industry fair in London gamers in the market are produced by the top game in 2015 was again “Magic Mirror”. Gauselmann Group, giving it pole position in The company also enjoys huge success in Spain this segment. The result of the development with its “Monopoly Jackpot” and is the exclusive The official market launch of “Merkurstar“ took Demand for adp products is also rising in competence of the British subsidiary Blueprint distributor of the popular Interblock roulette. place at the ICE in London at the beginning casinos across Germany. Gaming, the leading multi-platform developer Merkur Dosniha expanded structurally last au- of 2016. for digital games, and the technical resources tumn with the opening of a new sales office in The Gauselmann Group also posted increases of adp Gauselmann GmbH is an outstanding Murcia. For 2016, another office is planned in This underscores the enormous importance of for the VLT and SBG solutions segment in 2015, product range. The most compelling evidence the Spanish capital, Madrid. the company’s presence at trade fairs as a vital in particular in the Czech and Spanish markets. of this success is the popular “Genie” cabinet, instrument and with a view to generating sales several thousand of which can be found on the and enhancing relations with key accounts and For 2016, the international development and market. Coupled with the popular games from business partners, as well as generally monitor- sales arm of the Gauselmann Group has set the British subsidiaries Blueprint Gaming and ing the market. The ICE in London and the G2E in itself the goal to continue on this course of Betcom, the “Genie” cabinet has advanced to Las Vegas, as well as the regional trade fairs in strategic expansion and to make investments become one of the most sought-after products the core markets, continue to be valuable pres- in new sales markets. in the British pub and arcade sector. entation platforms for the Gauselmann Group. In the 2015 financial year, the Gauselmann In 2015, adp Gauselmann GmbH further inten- Stronger presence in Europe Group expanded its activities in the UK with the sified its presence in the international casino acquisition of the operating business of the Brit- markets and further strengthened its market The Gauselmann Group maintained its strong ish company Sceptre Leisure, which changed position in countries including the Czech Repub- international track record in Europe in 2015 its name in the same year to Regal Gaming lic, Croatia, Serbia and Slovakia. The com- especially in the UK, Spain and the Nether- and Leisure. The group had held a 25 per cent pany also continued to expand into the Russian lands. These target markets have in recent shareholding in this company since 2013. Regal market. For example, adp machines have been years already proved to be strategic growth Gaming and Leisure is one of the two largest installed in Russia’s largest casino in the Pri- markets with long-term potential. Accordingly, amusement with prizes (AWP) machine oper- morsky Krai gaming zone near the Pacific city the group’s sales revenues have developed ators in the UK and specialises in the highly of Vladivostok, as well as at the Altai and Asow very favourably. competitive pub segment. gaming zones. In the current business year, adp Gauselmann has already installed the first Due to the rapid development and the import- machines at the new gaming zone in Sotchi. ance the British market in the meantime holds for the group, it was decided in August 2015 to
24 THE GAMES MAKERS | GAUSELMANN 25 Merkur Division
Cash and ticketing activities
GeWeTe/HESS
The business activities of the Gauselmann sub- sidiaries GeWeTe and HESS are subsumed in the cash and ticketing segment. The core business ac- tivities of both companies focus on development, production and sales of money-changing systems for casinos and arcades, coin-operated self-service solutions for banks and savings banks, as well as payment systems for the public sector, retail com- panies and other economic sectors. The modern and innovative systems from GeWeTe and HESS are developed and manufactured in Germany and Austria and are characterised by their high quality, practicality and user-friendliness. Both companies are certified in accordance with DIN EN ISO 9001 and 14001 for exemplary quality and environmen- tal standards. Alongside the continued further development of existing products, the focus is on developing new technologies and systems.
Thanks to the configurability of the software, technology and place of use, all products can be The Merkur Spielbank in Magdeburg uses GeWeTe machines adapted to meet individual customer require- ments. Both GeWeTe and HESS are growing, ex- In the 2015 business year, GeWeTe consoli- The main customer groups for GeWeTe’s money- port-oriented companies, that in addition to de- dated its market leadership even further. The changing systems are arcades and casinos. veloping existing markets are looking to expand company employs a staff of nearly 100 at its New legal provisions under the federal state into new markets and further move ahead with development and production headquarters in arcade laws and the virtual standstill in the ex- internationalisation. GeWeTe and HESS systems Mechernich near Cologne. Product quality and pansion of new arcades resulted in the German have already been successfully installed in over the wide range of products are important USPs arcade industry again being less willing to in- 50 countries worldwide. The number of em- of the money-changing specialist. No other vest in money-changing systems in 2015. The ployees in the cash and ticketing activities seg- competitor worldwide is able to offer such a pay station segment and international business ment again grew during the 2015 financial year. wide choice. GeWeTe’s product range extends on the other hand grew significantly, so that from small change machines to the high-end despite losses in the German arcade segment PC-controlled “Maxi Cash Recycler” product that the company was able to close the 2015 finan- GeWeTe counts, validates and sorts bulk coins and re- cial year on a positive note overall. The biggest cycles them for further use. Proprietary increases were recorded in the UK and Spain. GeWeTe has been developing, manufacturing and hardware and software development maxi- selling money-changing machines, pay stations mises GeWeTe’s flexibility to quickly implement and Kiddie Rides both nationally and internation- customised solutions – giving the company a ally since 1993. In Germany, the company is un- decisive advantage over its competitors in pro- contested market leader for money-changing ject business, and in the fields of pay stations, machines in the arcades sector and is also one of ticketing and Kiddie Rides. the largest suppliers of pay stations and ticketing systems.
26 THE GAMES MAKERS | GAUSELMANN 27 Merkur Division Cash and ticketing activities
HESS-Group for rail and ferry travel, baggage retrieval ma- chines at airports and in the municipal sector. The HESS Group is made up of HESS Cash Sys- tems GmbH & Co. KG in Magstadt, near Stutt- GeWeTe is continually developing innovative gart, and its subsidiaries HESS Schweiz AG in technologies that help it to tap into new Bern and HESS Austria GmbH with locations in sales markets. Under the Merkur Kids brand, Gratkorn and Linz. The specialist for money- GeWeTe develops, manufactures and sells processing systems solutions dedicates itself machines specifically tuned to the needs of to developing, manufacturing and selling, in- children. The product portfolio includes the cluding customer service, hardware and soft- “Happy Kids” touchscreen entertainment ma- ware solutions centred around coin and cash chine, numerous Kiddie Rides, as well as driv- handling for banks and retail companies, as ing simulators. All products meet the high- well as payment systems for public institutions, est safety standards. GeWeTe is the only authorities, energy suppliers and libraries. The manufacturer with a Disney licence for Kid- company was founded in 1885 and has be- die Rides. In addition to the UK, Italy, Spain longed to the Gauselmann Group since 2001. and Scandinavia, the main sales markets in HESS is a permanent member of the CEN/ISSS this area are Australia and the Middle East. XFS Committee for Standardisation and Defini- tion of Coin Handling Processes at Bank Data Within the Gauselmann Group, GeWeTe change Centres, as well as various other committees machine systems are used in the CASINO and institutions. These include GS1 Germany MERKUR-SPIELOTHEK arcades and in the Merkur as “Solution Provider Cash Logistics” and OLAF Spielbanken Saxony-Anhalt in Germany, in the (Office de Lutte Anti Fraude), the European CASINO MERKUR International entertainment Anti-Fraud Office. The HESS Group currently centres in other European countries, as well as at employs over 200 staff. Merkur Win in Italy, the UK arcade chain Cashino and in Cashpoint and XTiP sports betting offices. HESS products and OEM assemblies are char- Strategic cooperation between Gauselmann subsidiary HESS and Wincor Nixdorf is further intensified (from l. to r.): Ulrich Bauer (CEO HESS Group), acterised by their high quality, availability and Uwe Krause (Vice President Wincor Nixdorf), Eckard Heidloff (President & CEO Wincor Nixdorf AG), Alexander Martin (New Media Gauselmann AG), GeWeTe is anticipating a further drop in sales in durability. They are developed and produced at Alexander Vleeming (Finance Gauselmann AG) in front of Schloss Benkhausen the German arcade market during 2016. In inter- the company’s headquarters in Magstadt/Ger- national business, the company is expecting a many and for the Austrian market in Gratkorn or The importance of national and international ment stores, libraries, transport operators and positive development in the pay station, money- Linz/Austria. All new products in the core fields business with arcades and casinos is docu- public facilities. In 2015, GeWeTe had an export changing system and car wash cash handling of “coin” and “payment” systems are developed mented among other things by attendance at share of 24 per cent. A new business segment segments. Due to the introduction of a new on HESS’ proprietary software and hardware numerous trade fairs. The positive feedback in 2015 was cash handling for car washes. platform and an associated reduction in manu- platforms and go through the entire product on the products showcased at these trade fairs facturing costs, GeWeTe is projecting a signifi- life cycle within the company. One important demonstrates that international arcade and Another steadily growing business sector is cant increase in international sales. The UK is component of the business model is the fact casino operators are also relying more and the field of sports betting. Similarly to arcade considered the most promising future market, that HESS offers both sales and service of its more on the innovative “made in Germany” operators, sports betting operators rely upon especially in the areas of sports betting and own products, which has attained a high level solutions from GeWeTe. For cash handling ac- efficient and effective money management. As TITO systems (Ticket-In-Ticket-Out). The com- of acceptance from the market. With the attrib- tivities in gaming clubs and casinos, GeWeTe there are still no uniform rules for sports betting in pany plans to further expand sales and tech- ute “made in Germany”, HESS stands for quality, developed the “Cash Center Compact Casino” in Germany, GeWeTe concentrates in this segment nical support in these areas in 2016. efficiency and precision, as well as its own 2015. The main international sales markets in on international sales. In this context, a large high quality standards. This is complemented the past business year were still the UK, Italy, number of cash handling systems have already by a pinch of “Swabian inventive talent” that Spain and Scandinavia, where GeWeTe in each been installed in betting shops across Europe. characterises the company, as well as its prod- case has its own customer service representa- ucts and services. tives and technicians. Apart from arcades and GeWeTe pay stations are used internationally casinos, GeWeTe’s money-changing technology as admission control systems in swimming is also used throughout the world in depart- baths and stadiums, as well as ticket machines
28 THE GAMES MAKERS | GAUSELMANN 29 Merkur Division Cash and ticketing activities
In the coin processing and sensor systems core The latest figures from the European Central technologies, HESS established a considerable Bank confirm that the number of euro coins in lead over other players in the market. Drawing circulation in the euro countries has increased on these technologies, the company developed significantly. HESS expects this to lead to a stable the coin recycling module TopRec, a brand new business environment and growth for the use product for the retail sector, which extends the of coin-processing self-service machines in the current product portfolio of the HESS Group banking market. Coin business featuring HESS with the “Retail Cash Center” for banknote and technology for major national and international coin recycling as a back office solution for retail banks was further developed in cooperation companies. with the ATM manufacturers. HESS recorded a substantial increase in sales revenue in this segment in the second half of the business year. The company also significantly expanded its service business in the 2015 financial year, which in the meantime accounts for an import- ant and steady share in the sales and earnings of the HESS Group.
Another important pillar for HESS is the pay- ment systems segment. More time for service, user-friendliness, individual configuration pos- sibilities and flexible counter opening hours are just some of the advantages the HESS “Multi- Pay” series offers. During the past few years, The following experts were available for trade fair visitors at E-World 2015: Günter Miekley, Armin Gonther, Achim Heinkele, Carsten Ebeling and Sales Director Wolfgang Ristau from the HESS sales team and Ludwig Roß from Stadtwerke Gronau public utilities (from l. to r.) the company has realised around 600 projects in municipal offices, libraries and with ener- gy suppliers. The core markets are Germany, Austria and Switzerland. This segment also saw growth both nationally and internation- The main products in the cash handling seg- cheaper to produce; it is also easier to set up ally. HESS payment systems make an important ment are coin pay-in machines, coin-roll and install the hardware and software on the contribution to the diversification of the prod- dispensers, deposit systems and OEM products customer’s premises. Moreover, the system can uct offering and market segmentation of the that are mostly used in the self-service areas of be flexibly adapted to the individual needs of HESS Group. banks and savings banks, as well as in the retail the market or even individual customers. sector. The main sales markets served by HESS Key investments were made in the past busi- are Germany, Austria and Switzerland, as well The development of this machine family also ness year that will make a significant contri- as France, the Netherlands, the UK and Austra- provides the basic technology for the stra- bution to the company’s business success in lia/New Zealand. The export share in 2015 was tegic cooperation with Wincor Nixdorf from 2016. A further focus will be on expansion of 44 per cent. Paderborn, the globally leading provider of the national and international banking market, IT solutions and services for retail banks and development of payment systems in Germany, With the further development of the “CoinIn commercial companies. Thus, Wincor Nix- The new HESS coin counter CoinIn is in high demand Austria and Switzerland and establishing 315/325” pay-in machine and the OEM module dorf will complement its product portfolio of HESS products in OEM business with ATM TopCoin®, HESS 2015 was able to set new stand- self-service solutions with HESS products and manufacturers. ards on the market in 2015, not only in terms coin components and HESS will in future manu- of technology, but also with the typical HESS facture the bespoke Wincor Nixdorf coin de- design. The modular structure not only makes posit and coin recycling systems in Magstadt. this new generation of machines easier and
30 THE GAMES MAKERS | GAUSELMANN 31 Merkur Division
Research and development In the past financial year, the company selec- One important milestone in the Gauselmann tively increased its software development Group’s international casino business in 2015 resources at the company’s headquarters in was the completion of the “Merkurstar”. This Lübbecke, as well as at other locations, for type of upright cabinet is fitted in approxi- example Blueprint Gaming in the UK. The In- mately 70 per cent of the installation slots of dian subsidiary Merkur Gaming India also sig- international casinos. The “Merkurstar” rounds nificantly expanded its field of activities. Here, off the Gauselmann Group’s product portfolio, the company built up a fully independent which can be adapted to the needs of the re- game design team with a focus on developing spective market. Like the “M-BOX” or the games with a higher entertainment value for “Avantgarde SLT/Aurora”, the “Merkurstar” is the online segment. Another game design renowned for its futuristic design and striking team is currently being set up in the USA. This lighting effects. The ergonomic arrangement of will develop game systems and content for the monitors and operating controls, coupled the North and South American markets, which with outstanding acoustics and high-resolution will also have a strong orientation towards HD technology, underscores the entertainment entertainment. character typical of Gauselmann machines. The development of the modern upright cabinet Development work in the past business year takes account of global requirements linked concentrated largely on the completion and to the business expansion of the Gauselmann market launch of the “M-BOX” in Germany. Group and is an important step in enabling the With its tablet-style, high-resolution monitors, company to penetrate new markets in the fu- progressive design and impressive lighting ture. The “Merkurstar” was presented for the effects, this cabinet innovation has set new first time at the G2E industry trade fair in Las benchmarks both nationally and international- Vegas in September 2015, and the official mar- ly. The Gauselmann Group has invested nearly ket launch took place at the ICE in London at the four years of research and development work beginning of 2016. in the “M-BOX”. In the process, the develop- ment team accepted no compromises when it Operation of its own casinos in Saxony-Anhalt, came to playing comfort and ergonomics. The with locations in Leuna and Magdeburg, has for user-focused arrangement of the monitors and the first time given the Gauselmann Group the touchpad, the coin dispenser tray on the con- possibility to intensively test casino products. sole and an additional “start” button offer max- Thus, the company receives direct and unbiased imum user friendliness. What’s more, in order information about the product attributes from to protect the inside of the cabinet from dust within the company. This is a huge help when and dirt, the “M-BOX” was conceived from the it comes to optimising international business. outset so that no fan is required. The “M-BOX” is also ready for compliance with the Tech- One of the Gauselmann Group’s most successful nical Directive (TD) under the new Gaming Ordi- games developments in the reporting period nance and allows quick and easy conversion to was the “Magic Monk Rasputin” game, which Research and development have always played In 2015, the Gauselmann Group had around 500 TD 5.0. The “M-BOX” was launched internation- is currently the group’s most successful game in an important role within the Gauselmann staff members working in this field worldwide. ally under the product names “Aurora” (UK) Germany. The company is currently working on Group. The highly restrictive, state-specific The global research and development network and “Avantgarde SLT” (for example in Mexico). rolling out “Magic Monk Rasputin” to internation- and constantly changing environment of the is made up of 16 game design teams in total. For the current business year, it is planned to al markets and online. international gaming industry requires us to 65 per cent of the development capacity is launch the “Avantgarde SLT” on the Peruvian continuously anticipate trends, the demands based at various locations in Germany, while 35 market. Further installations are currently being of the market, legal parameters and customer per cent of the employees develop games con- tested in eastern Europe and in Colombia – so preferences. tent at international locations. far with very positive results.
32 THE GAMES MAKERS | GAUSELMANN 33 Merkur Division Research and development
An excellent example of pooling the group’s The research and development department also development competences in 2015 was the de- had to contend with a high number of adapta- sign of a multigamer for the Spanish catering tions to stricter legal restrictions in 2015. The market. At the gaming fair Fer Interazar, Merkur new Gaming Ordinance that came into force at Dosniha for the first time presented the “Genie” the end of 2014 also gives priority to protec- cabinet, which had originally been developed tion against manipulation and secure storage by Blueprint Gaming for the British category C of recorded data. The Gauselmann Group took market. Combined with the two “Merkur Multi” the initiative at an early stage and developed a and “Rey de la Suerte” games packages for the corresponding security concept in collaboration hospitality sector, this is enjoying high demand with the Fraunhofer Institute for Applied and in the Spanish catering sector. Integrated Security (AISEC) in order to protect
Games development takes place worldwide
The Gauselmann Group underlines its role as The research and development department technology and innovation leader by continu- cooperates closely with a market research de- ously working on new solutions in the field partment that operates within sales, and with of VLT and SBG systems which automatically the group’s own operating division. Additional exchange information and data with a central initiatives such as the Merkur Advisory Board, server. In collaboration with the British Praesepe games scouts and participation at international Group, which has been part of the group since industry fairs help to identify potential trends 2012 and operates a large number of entertain- early on. ment centres and bingo halls in the UK, the Gauselmann Group has developed an SBG sys- One aspect that is going to become increasingly Graphics is an important part of games development tem that implements the specific requirements important for the gaming industry in the future Following an extensive test phase, the Gausel- its game systems against illegal tampering by of the amusement arcade chain. This system is the user-machine interface. The group recog- mann subsidiary MEGA brought several supple- third parties. This has enabled the company to was fitted in three test arcades in 2015. Rollout nised this potential early on and is working on mentary games for individual machines, also receive the first type approvals in compliance began in early 2016, so that all machines in- the development of corresponding solutions. It known as single jackpots, to market in Germany with the new Gaming Ordinance. The group stalled in Praesepe arcades will soon be net- plans to present new cabinet designs for the in 2015. The new games packages with feature is currently working on other adaptations re- worked with the in-house SBG system, paving international casino market in the second half games provide even more suspense and the quired under the Gaming Ordinance, for example the way for business management and tech- of the current financial year. chance to win more prizes. MEGA also invested introduction of player cards and protection of nical controlling of the machines. more research and development resources in fiscal data. Further type approval certifications new game systems and packages for the Dutch are targeted for 2016. The number of technology and cabinet innov- market under the “Games Unlimited” multi- ations has increased steadily over the past few game line. Much of this expenditure flowed into Over the past few years, the Gauselmann Group years and, with the introduction of the “M-Box” the development of a multiplayer multigamer – has also developed an extensive portfolio of in the 2015 business year, the Gauselmann a gaming machine for several players that has sports betting terminals that is characterised by Group underscored its pioneering role in the now been endorsed by positive feedback from its high quality. To enable it to continue to serve research and development sector. As a manu- the market. this market segment in a meaningful way and facturer and operating company, the group achieve cost leadership in the sports betting is able to permanently monitor the market. segment in the future, the company is currently developing a concept for a new, less expensive sports betting terminal that was launched on the market in spring 2016.
34 THE GAMES MAKERS | GAUSELMANN 35 Spielothek Division
licensed before 28 October 2011, a one-year ting effect on staff. The number of gaming ma- “The ‘Spielothek’ success model works transition period for those licensed after this chines per concession also had to be reduced Europe-wide because it is based on qual- date. The legality of the one-year transition from twelve to eight. The entry control rules period is interpreted differently by the respect- effective in all arcades in the state of Hesse ity and focuses on the customer. In many ive municipalities, however. While in Augsburg, since 2014 had an additional negative impact for example, three of the four licensed conces- on the operating result. However, the Gausel- places it is hindered by an unreasonable sions were required to close after the coming mann Group was able to effectively counter this into force of the First Amended Interstate challenge with a proprietary entry control solu- policy that is driving players to the Internet Gambling Treaty, in Herne a five-year transi- tion. Tax increases were an additional burden in by imposing bans.” tion period was confirmed. In Berlin the tran- 2015. In particular, the rise in the amusement sition period ends on 31 July 2016, in all other tax of 19.3 per cent compared to the previous federal states in 2017. From then on, in addition year had an adverse impact on the result of Dieter Kuhlmann, Management Board member to the existing permits under Section 33i of the operations. Trade, Commerce and Industry Regulation Act (Gewerbeordnung), all arcades will be required The constraints imposed by regulatory re- to have gaming permits (pursuant to Section strictions and the restrictive licensing pro- 24 of the First Amended Interstate Gambling cedures were also the reason why CASINO Treaty), which would apply under all the rele- MERKUR-SPIELOTHEK decided to slow down its vant restrictive provisions of the Interstate expansion activities. Reflecting the political Treaty and the state arcade laws. A number of framework, new types of branch – entertain- federal states have incorporated provisions into ment centres with a single concession – con- their arcade laws or implementing acts stipu- tinued to be tested in 2015. lating the time frame for applying for the gaming permits. However, the majority of the federal Since CASINO MERKUR-SPIELOTHEK was found- states are still up in the air as far as this is con- ed, the alignment of the four success factors cerned. Many regulatory authorities are declin- “Products – Personnel – Customer Service – At- ing to take a decision on such applications for mosphere” has been continuously adapted and gaming permits on the grounds that the new enhanced. The success of this concept is mir- Operation of entertainment centres in Germany gaming law will not be generally applicable rored in the awards CASINO MERKUR-SPIELO- everywhere until after mid-2017. THEK has received in the past few years. In 2016, the company was voted a “Top Nation- If an application for a multiple-succession gam- al Employer” by the German news magazine For over four decades, CASINO MERKUR-SPIELO- of the First State Treaty on the Amendment ing permit is made or if there are other ar- Focus for the second time in a row – making THEK has built its success on four main pillars: of the State Treaty on Gambling in Germany cades or youth facilities within the legally CASINO MERKUR-SPIELOTHEK one of the top innovative products, qualified personnel, best (“First Amended Interstate Gambling Treaty”) defined radius, the permit must be extended by 1,000 employers in Germany. The company also customer service and a first-rate atmosphere. signed in December 2011, the respective state a so-called exemption request. The respective successfully participated in the “Top Service With the opening of the first Merkur-Spielothek arcade laws and implementing acts, as well as exemptions may derive concretely from individ- Germany 2016” competition, which was organ- in Delmenhorst in 1974, company founder Paul increases in amusement tax, again played an ual state laws or by recourse to the general ised by ServiceRating GmbH in collaboration Gauselmann laid the foundation stone for the important role. In addition to a ban on multiple clause in Section 29 (4) GlüÄndStV. The over- with the Handelsblatt newspaper as media company’s future success. In the arcade seg- concessions, effectively required minimum dis- all legal situation thus remains unclear. For the partner. Early in the year, the company was ment, CASINO MERKUR-SPIELOTHEK is market tances to other arcades and/or youth facilities companies this is risky and offers absolutely no voted “most popular gaming arcade” by Focus. leader in Germany with 236 entertainment under the provisions of the First Amended Inter- planning security. The fact that CASINO MERKUR-SPIELOTHEK is centres and more than 10,200 installed coin-op state Gambling Treaty (Glücksspieländerungs- known for first-class service was testified in a machines. A staff of 3,333 shape the image of staatsvertrag – GlüÄndStV) and the state arcade Especially restrictive laws apply for Berlin. Since nationwide service ranking by the daily news- the company with the laughing Merkur sun. laws/implementing acts also introduced a ban June 2011, these have required one supervisor paper Die Welt, in which CASINO MERKUR- on relicensing. Transition periods have been per concession to be present, who is, however, SPIELOTHEK was voted “Service Champion Business development in 2015 was positive, defined for existing arcades depending on the not permitted to perform all the duties of a Bronze 2013” and Number 1 in the “Arcades” despite the fact that the year was again char- initial date the respective licence was gran- service employee. For example, it is prohibited category. acterised by numerous restrictions. The effects ted. A five-year transition period for arcades to serve food and drink. This has a demotiva-
36 THE GAMES MAKERS | GAUSELMANN 37 Spielothek Division Operation of entertainment centres in Germany
CASINO MERKUR-SPIELOTHEK relies on the four success factors: innovative products, a modern atmosphere, qualified personnel and first-class customer service
ination”. 39 employees qualified as “coin-op ing guests. Consumer protection in commercial geared towards the latest trends and the service technicians” via this route in 2015. With gaming is therefore also part of the training wishes and needs of customers. In the 2015 The basis for this success is above all the con- the one-year in-service training to become a and further education curriculum. In the area of financial year, almost 4,900 games packages tinuous training and further education meas- “casino service specialist (Chamber of Com- external training, CASINO MERKUR-SPIELOTHEK’s were exchanged, ensuring guests can enjoy ures offered to staff. The industry-specific merce approved)”, CASINO MERKUR-SPIELOTHEK training managers collaborate with a number of varied and cutting-edge entertainment at all apprenticeship professions “coin-op specialist” offers its staff a further industry-specific train- approved training facilities in Germany. times. In December 2014, “Merkur Roulette” was and “coin-op service technician” were officially ing option. In 2015, 83 candidates successfully relaunched with a real roll of the ball. In 2015, recognised and approved in 2008 after years of completed their in-service training, and in April The sophisticated exterior design and interiors the “M-BOX” was successfully rolled out across campaigning on the part of well-known lobby 2016 the 500th graduate was presented with of the entertainment centres and the choice the board with 1,000 machines. This latest groups, institutions and companies – with the her certificate. The company’s training port- of products further underscore the high qual- product made by Gauselmann not only features Gauselmann Group leading the way. Uniformly folio also includes training in the latest prod- ity of the offering. CASINO MERKUR-SPIELOTHEK the most innovative cabinet on the market; structured training leading to the qualifica- ucts, comprehensive induction training for stands out from its competitors thanks to a its modern monitor and superb playing comfort tion “coin-op specialist” has been offered since new management staff at the flagship store in unique exterior design. The arcade interiors are have gone down a storm with players. 2015. It is based on a period of three years and Espelkamp and so-called kick-off events for devised exclusively in Espelkamp by the “Cre- offers trainees in the Gauselmann Group the new employees. The offering is rounded off ative and Design Development” department, opportunity to specialise in the field of coin-op by a regular “qualifying campaign”, during taking account of corporate design guidelines. service with a focus on “commercial business which all staff from the services headquarters The company with the laughing Merkur sun ad- processes” and “customer service”. Staff already and the branches are informed about current dresses the issue of environmental protection working at entertainment centres who meet topics and developments. Training also encom- among other things by installing photovoltaic certain criteria have the opportunity to obtain passes communicating the service mentality systems on the roofs of a number of enter- professional qualification as a “coin-op service that also plays a central role at CASINO MERKUR- tainment centres. Guests at the entertain- technician” and in future “coin-op specialist” SPIELOTHEK. The company places just as much ment centres can experience a range of games through the so-called “external students’ exam- importance on responsibility towards its play-
38 THE GAMES MAKERS | GAUSELMANN 39 Spielothek Division Operation of entertainment centres in Germany
for gaming machine operators to advance and establish their business on the market, for which the company is seeking further business partners for 2016. In the CASINO MERKUR- SPIELOTHEK arcade segment, the company will further test the new type of branch with a single concession. Numerous concessions are to be developed or acquired by competitors.
To ensure it is well-positioned to weather future challenges, CASINO MERKUR-SPIELOTHEK will continue to develop its four pillars of success in the future. Additionally, the areas of “certi- negative impacts for Berlin, and more entry fication” and “consumer protection” will play a controls, which are currently planned in Rhine- prominent role in 2016. Since the beginning of CASINO MERKUR-SPIELOTHEK not only receives land-Palatinate and Baden-Württemberg. How- These negative developments are offset by the year, 133 CASINO MERKUR-SPIELOTHEKEN, awards; the company is also certified in accord- ever, experiences already made in this area in the attractive offerings and positive image of as well as the service centre, have complied ance with DIN EN ISO 9001:2008. The corpor- Hesse can serve in the future to optimise the market leader CASINO MERKUR-SPIELOTHEK that with the high requirements of TÜV Rheinland in ate headquarters was certified by TÜV Rhein- implementation of such controls. Further in- will attract new customers. The state arcade order to obtain certification. Certification is also land in 2013 and the process was extended to creases in the amusement tax will again have laws will on the other hand also see to it that to be extended to newly developed or acquired the operating companies and entertainment a stranglehold effect. For 2016, this is expected virtually no new competitors enter the market. branches. centres from 2014. This certification was also to amount to 15.3 per cent of takings across all CASINO MERKUR-SPIELOTHEK will continue to successfully carried out, that is to say that TÜV locations. CASINO MERKUR-SPIELOTHEK plans to concentrate in its core business in 2016. This Rheinland positively accredited the quality man- contest the level of amusement tax before the also includes arcade management, a service agement system within the company with all courts based on available legal opinions. The work processes. The headquarters received the 7th Gaming Ordinance, which came into force official TÜV certificate in 2014, the operating in 2014 and defines new maximum prizes and companies and entertainment centres in 2015. loss limits, is not expected to have an impact Within the industry certification programme, in 2016. TÜV InterCert Saar had certified the CASINO MERKUR-SPIELOTHEK service centre and 102 ar- cades by early 2016. With this, the company is once again demonstrating that it is compliant and adheres strictly to law and order.
Despite the many constraints, the company’s positive economic development is expected to continue in 2016. Restrictions will again come from the state arcade laws, with especially
40 THE GAMES MAKERS | GAUSELMANN 41 Spielothek Division
Operation of entertainment centres internationally The Gauselmann Group launched its inter- ing tougher regulations, taxes, the external national arcade expansion with the opening image of entertainment centres and licence of its first international entertainment centre extensions in 2015. Whilst on the one hand in Amsterdam in 1986. In 2005, Merkur Casino these obstacles resulted in reduced earnings, GmbH was founded. It was later renamed they also led to a shake-out of the market. Im- and currently trades as CASINO MERKUR Inter- proved communication with the authorities in national GmbH. Under the logo of the laughing the Czech Republic and Slovakia on the other Merkur sun and brand images adapted to the hand meant that – except in Brünn – further respective market, the company in the past closures were avoided for the time being. business year operated 208 modern enter- However, they will probably be inevitable in tainment centres in eight European countries. 2016. Petitions against arcades are currently A total of 2,100 employees work at the com- pending in Bratislava (Slovakia), for example, pany’s arcades in Bulgaria, the UK, Croatia, the as is a ban on arcades in some districts of Netherlands, Serbia, Slovakia, Spain and the Prague (Czech Republic). Here, from 1 January Czech Republic. 2017, only casino licence holders will be able to obtain authorisations in a few districts of the Just as in the German affiliate CASINO MER- city. CASINO MERKUR International holds this KUR-SPIELOTHEK, in the international arena licence at the majority of its locations. CASINO MERKUR International also places the emphasis on innovative products, qualified On the whole, the offering in the entertainment personnel, first-class service and a modern at- centres found growing acceptance. Neverthe- mosphere, with the range individually tailored less, countries where online gaming is be- to the needs and cultural specificities of the re- coming increasingly popular also saw a migra- spective local markets. The takeover of the Brit- tion of customers away from arcades. The trend ish Praesepe Group in 2012 had an even more towards more video lottery terminals (VLTs) and positive effect on the business development server-based gaming (SBG) systems that are in 2015 than in the previous year. Overall, the permanently linked to a central server and are company recorded significant increases in cash operated under the direct online supervision takings and earnings in all countries with the of the respective finance ministry continued single exception of the Netherlands. The com- across all countries. In some countries, cashless pany continued to optimise internal structures and loyalty systems were extended. Cashless and processes during the 2015 business year to systems allow players to pay without cash, ensure it is well-positioned to weather future for example through the use of a player card. challenges. This involved revising organisa- In some cases, for example in the casinos in tional charts and international guidelines, Saxony-Anhalt, tickets may be issued that holding regular centralised and decentralised allow players to continue playing at another coordination meetings and improving the machine. With loyalty systems, players par- regional controlling system. ticipate in bonus programmes. In the past business year, these included a playing card In the 2015 business year, CASINO MERKUR system that was introduced in the Czech International faced increasing political pressure Republic and adapted specifically to the needs on the part of the authorities in all countries, of branches there. provoked mainly by the negative reputation and abuse of the legal system by a few ar- cade operators. As in the previous year, CASINO MERKUR International also saw a greater need for discussion with government bodies regard-
42 THE GAMES MAKERS | GAUSELMANN 43 Spielothek Division Operation of entertainment centres internationally
ing their portfolios with live games. In 2015, operate its own Web radio tailored to players’ The company also aims to acquire new loca- CASINO MERKUR International withdrew from interests and in Slovakia digital signage is used tions in Serbia and Croatia. Improved cost struc- the Italian market completely. to communicate advertising and information on tures and – depending on the respective coun- electronic boards outside and inside branches. try – the introduction or optimisation of binding As with the German affiliate CASINO MER- In many countries, the company relies on chan- structures will also have high priority. Other KUR-SPIELOTHEK, staff training and further nels such as Facebook and Twitter as well as changes will continue to align the company education played an important role at CASINO the CASINO MERKUR International website to with its CASINO MERKUR-SPIELOTHEK affiliate. MERKUR International. In the Czech Republic, post news. In this way, it is intended to achieve or expand the Netherlands, Slovakia and Serbia, as in Ger- the market leadership in the various countries. many, induction training for new staff is now Next to the professional competence of the also organised centrally at the respective flag- staff and customer service, the choice of prod- ship stores. This was complemented in 2015 by ucts on offer at the entertainment centres plays ongoing training in the product segment, as a major role in the company’s success. In the well as management and personality seminars 2015 financial year, more gaming machines for managerial staff. These were further from the Gauselmann brand Merkur Gaming developed following the model applied in Ger- and more jackpot systems were installed. Mer- many. As in previous years, the topic of con- kur Gaming products enjoyed particularly high sumer protection constituted an important demand above all in the UK, the Netherlands part of the training content at CASINO MERKUR and Spain. In Serbia, the “Highflyer” gaming International. Team-building events aimed at re- machine with its floating monitor proved ex- inforcing staff quality and loyalty completed the tremely popular and in the Netherlands the training and further education portfolio. Merkur multigamers went down very well. The innovative “M-BOX”, that is already proving Gauselmann Group arcades in the UK are called Cashino In addition to highly qualified personnel, ser- highly successful in Germany, was launched in vice quality at the entertainment centres played a number of countries under the name “Avant- Aside from the similarities mentioned above, an important role. CASINO MERKUR Inter- garde SLT” or “Aurora”. the market situation for CASINO MERKUR In- national further developed and optimised its ternational shows a differentiated picture due, customer service in the past business year by In 2016, as in the previous year, CASINO MER- above all, to the heterogeneous conditions in implementing or, where they already exist, KUR International will continue to focus on the different countries. In the Czech Republic, optimising binding customer service concepts. consolidation. The company will carefully ana- some arcades had to close in 2015 and – just In the Netherlands, where first-class service at lyse existing markets and tap into new mar- as in the Netherlands – increased requirements CASINO MERKUR International arcades enjoys kets – also outside Europe. With decisions by were imposed regarding entry controls with a particularly good reputation, the company the authorities difficult to gauge, expansion collection of players’ personal data. In Slovakia, extended the DEKRA certification in order to will continue at a very restrained pace, being a petition was launched for the closure of all place even greater emphasis on the unique driven forward only on the Spanish mainland. arcades in Bratislava for 2017. In the Nether- quality of the entertainment centres. Trans- lands, protection of non-smokers above all had national communication and the use of modern The biggest bingo hall in the UK also belongs to the Gauselmann Group a strong negative impact. High competition technologies also improved the way customers density can be observed here and in Slovakia. are approached. The aim here is to implement Operators in Slovakia, the Netherlands, Bul- an integrated and coordinated concept across garia and the Czech Republic are also extend- all companies. The Czech Republic continues to
44 THE GAMES MAKERS | GAUSELMANN 45 Spielothek Division
Operation of casinos The Gauselmann Group has been active in the world to feature a special ticketing system that casino sector since 2013. In the same year, Mer- makes the traditional cash counter redundant. kur Spielbanken Sachsen-Anhalt GmbH & Co. The intelligent “idrop” system, comprising a KG, a joint venture with the Swiss Stadtcasino cash and a ticket acceptor and a ticket printer, Baden AG, won the tender for the licence to is integrated into the casino tables. It is also operate casinos in the state of Saxony-Anhalt; possible to switch slot machines or game forms the company was granted the licence to oper- and continue to play with the same ticket. Any- ate public casinos in Saxony-Anhalt in 2014. body wishing to have their ticket paid out in Germany’s most modern casino opened its cash can do so conveniently at one of several doors in Leuna-Günthersdorf in December 2014; pay stations from the Gauselmann Group port- the official opening with the roll of the golden folio. This system offers customers greater con- ball took place in January 2015. A second ca- venience and security. High security standards sino was opened in Magdeburg in April 2016. are additionally set at the Merkur Spielbank in The company has a 15-year licence for a total of Leuna-Günthersdorf with 150 surveillance cam- two casinos and four coin-op machine arcades eras in the indoor and outdoor areas. in Saxony-Anhalt. Following the acquisition of 40 per cent of the shares in Gustav Jaenecke In the concept for Germany’s most modern ca- GmbH & Co. KG, which operates the Spielbank sino, professionally trained staff and first-class Berlin, the Gauselmann Group will in future customer service are top priorities. Prior to the be actively involved as a shareholder in the opening of the casino, all staff received exten- development of licensed casino venues in sive training and were intensively prepared for Germany. their new tasks. In 2015, ten new jobs were created at the Merkur Spielbank in Leuna-Gün- The Merkur Spielbank in Leuna-Günthersdorf is thersdorf, bringing the number of employees based on a unique concept combining classic at the end of the year to 50. For the operating games such as blackjack, poker and roulette company, being “modern” also means that with slot machine games. At the Merkur Spiel- guests are welcome to come in the clothes they bank, professionally trained staff, first-class feel comfortable in. While guests are expected customer service and state-of-the-art technol- to dress appropriately, it is not compulsory to ogy are top priorities. In terms of design, prod- wear a suit and tie. uct and services offering, as well as optimised business processes, Merkur Spielbanken Sach- The Merkur Spielbank in Leuna-Günthersdorf is sen-Anhalt GmbH & Co. KG serves as a model also the first casino in Europe to undergo ac- for other operators. Classic games are played creditation by the internationally renowned at four roulette tables, two blackjack tables Global Gambling Guidance Group (G4), thus and four poker tables. These are complement- breaking new ground with respect to the ed by 120 gaming machines offering slot ma- issue of responsible gaming. As part of the chine games, including 18 places for electronic accreditation process, the G4 experts examined roulette. There is also a stage for events and the effectiveness of the responsible gaming a lounge and bar area where food is served. measures put in place for the Merkur Spiel- The Merkur Spielbank is located in an A-frame banken in Saxony-Anhalt and controlled their
The new Merkur Spielbank Magdeburg was opened in April 2016 in the presence of Prof. Dr Ulf Gundlach (4th from left), State Secretary in the Ministry of the building that is flanked by two pavilions. The conformity with the strict G4 accreditation Interior and Sport of the state of Saxony-Anhalt, Marcel Tobler (6th from left), Chief Financial Officer Stadtcasino Baden AG, and Paul Gauselmann (5th from left) interior design is the work of renowned archi- guidelines. The certification process entailed tects Günter Merckle and Axel Jung, who have several steps altogether. The G4 certification for created a unique atmosphere. Use of state-of- responsible gaming was presented at the offi- the-art technology in all areas is also part of cial opening event of the Merkur Spielbank in the concept. For example, the Merkur Spielbank Leuna-Günthersdorf. in Leuna-Günthersdorf is the only casino in the
46 THE GAMES MAKERS | GAUSELMANN 47 Spielothek Division Operation of casinos
The completed 2015 financial year was the first In order to make the Merkur Spielbank in full operating year for the Merkur Spielbank in Leuna-Günthersdorf better known, a number Leuna-Günthersdorf. The innovative concept of events and campaigns were organised. The implemented by the operators proved suc- introduction of poker in the second half of the cessful. Although there had been no casino in year attracted a new target group, which also Saxony-Anhalt in the previous years and a new took advantage of other games and the cater- customer base thus had to be established, the ing offerings. business performance was positive. The new Merkur Spielbank in Magdeburg was officially opened on 8 April 2016. As many as 1,000 visitors were recorded on the first week- end alone. The Merkur Spielbank in Magdeburg is designed for the time being as a slot machine casino; other games, such as poker, are to fol- low at a later date. The casino has a total area of around 800 square metres, with 460 square metres of gaming area, 200 square metres of which is a dedicated smoking area. The product portfolio includes 101 certified slot machines of the latest generation and a mix of gaming machines from ten different national and inter- national manufacturers. There are also three jackpot systems and two roulette stations with 17 places altogether. A bar serving food and drinks and a lounge area complete the offering. The investment costs for the venue in Leuna-Günthersdorf and the venue in A structural change took place in early 2016: opening of the venue in Magdeburg and Magdeburg totalled around 10 million euros, Gauselmann Spielbanken Beteiligungs GmbH an optimised cost structure will enable the some 4.7 million euros of which was spent and consequently also Merkur Spielbanken company to operate at a profit by 2019 at the The casinos of Merkur Spielbanken Sachsen-Anhalt GmbH & Co. KG are the most modern in Germany on Magdeburg. The casino has created 20 Sachsen-Anhalt GmbH & Co. KG were inte- latest. In 2016, the focus will continue to be new jobs in Magdeburg. As with the casino in grated into CASINO MERKUR-SPIELOTHEK. on a diversified offering, efficient business Leuna-Günthersdorf, professionally trained Given the extensive restrictions on commercial processes, excellent customer service and well- staff, first-class customer service, an innova- gaming in casinos and the virtually non-existent trained staff, as well as the topic of responsible tive and extensive product portfolio and mod- expansion in this segment as a result of the gaming. ern casino design are also top priorities present legislation, this will sustainably in Magdeburg. The successful ticketing system strengthen the position and business model of used at the Merkur Spielbank in Leuna- the casinos within the company. Günthersdorf was also installed in Magdeburg. For 2016, the company is expecting gross Overall, Merkur Spielbanken Sachsen-Anhalt gaming revenues to increase significantly. can look back on a successful business year in It hopes that increased sales revenues of the 2015 and a good start in Magdeburg in spring Merkur Spielbank in Leuna-Günthersdorf, the 2016.
48 THE GAMES MAKERS | GAUSELMANN 49 New Media
“More and more countries are regulating Online gaming and liberalising gaming and sports betting offerings on the Internet. This opens up new markets for us that we can serve with our products and services.”
Alexander Martin, Management Board member
edict eGaming The New Media corporate segment covers the In the 2015 business year, the company placed areas of online gaming, financial services and The software company edict eGaming GmbH, a particular focus on newly licensed European sports betting. Merkur Interactive, established with registered office in Hamburg, specialises markets. For the Spanish market, it was able in 2006, is responsible for the development of in the development and sales of turnkey sys- to create and certify a turnkey product under this market segment. tems and games platforms for the online casino the new licensing requirements with attractive market. Apart from pure software licensing, games developed by the group. the company also assumes responsibility for overall monitoring and technical systems ope- In May of the last business year, the UK Gam- ration within the B2B sector of the Gauselmann bling Commission granted edict eGaming GmbH subsidiaries. a software manufacturing licence, that will allow it in future to supply UK-licensed com- The main business activities are for the most panies with software. In addition to the part carried out at the development sites in already mentioned activities, the com- Germany, as well as the Isle of Man for oper- pany’s games were revised and licensed for the ations and marketing. regulated market in Italy, leading to a more intensified development of the Italian market.
50 THE GAMES MAKERS | GAUSELMANN 51 New Media
The “edict game bridge” launched in 2014 has been operated by the newly founded com- Financial services proved very successful. This innovative solution pany Merkur Interactive Services GmbH, based allows games from the edict portfolio to be in- in Berlin. tegrated into online casinos of other manufac- turers. The company acquired numerous new customers for the “edict game bridge”, enabling it to far exceed the sales targets set. Merkur Interactive Services
The market launch of the edict mobile portal in Merkur Interactive Services (MIS) consolidates the past business year now allows the company all online gaming offerings for consumers – in- to offer gaming customers an online casino that cluding the brands merkurmagic.es, cashino. is optimised for mobile devices. This product in- com, Merkur-win.it, Merkur Spielcasino, Cash- novation has been enthusiastically received in point and XTiP – relating to sales, marketing, the marketplace. As in all e-business areas, the media and customer care activities in the on- use of mobile offerings is constantly increasing. line segment. The focus in the business year was on developing the structure, implementing To develop the edict mobile portal and at the uniform processes and integrating the existing same time comply with the changed require- national organisations with the aim to consoli- ments relating to the mobile use of the “edict date and optimise processes and offerings in game bridge”, the company developed and the various countries and implement new tools offered its first HTML5 games. This techno- and games in order to remain competitive. In logical change met with universal approval Berlin, as well as the marketing and platform from customers, prompting the decision to team, an international call centre for the B2B The market for online payments is growing A secure flow of money and secure processes replace all flash games with HTML5 games in segment was established. steadily worldwide due to an increasing num- are extremely important today and especially the medium term. ber of consumers making mobile purchases in the gaming sector are considered sensitive. By consolidating operations in one company, and payments on their laptop, tablet or smart- Overall, the activities of edict eGaming GmbH the Gauselmann Group aims to continuously phone. More and more consumers are utilising On the whole, the company recorded a positive in the 2015 financial year resulted in a positive enhance service and operator quality and, hand cross-border methods of payment. business trend, with an increase in the transac- sales development, with increases especially in hand with this, increase sales and leverage tion volume of over 10 per cent compared to in external sales. Compared to the previous synergies in this business segment. With the acquisition of a majority shareholding the previous year. A number of new external year, sales growth in this segment increased by in the Euro Payment Group (EPG), the Gausel- customers were won in 2015, as well as the almost 30 per cent. mann Group tapped the financial services busi- intra-group customer Cashpoint. Work continues ness segment in 2014. Headquartered in Frank- on the technical optimisation and further de- The products of edict eGaming GmbH are used furt am Main, EPG operates worldwide in the velopment of the payment gateway in order to in the operation of nearly all of the group’s on- areas of online payment, mobile payment and offer internal and external customers maximum line casino portals. This applies especially to gateway services. security, convenience and service. EPG has also portals in the UK, Spain and in Schleswig-Hol- strengthened its competitiveness by extend- stein, which since the 2015 business year have The main business activities of EPG in the past ing the portfolio with inclusion of alternative financial year focused on the markets in Ger- methods of payment, for example “Sofortüber- many, Spain, the US and the UK. The company weisung” (instant transfer), Paysafecard, Neteller specialises in the digital entertainment market, and Skrill. with an extensive offering of payment options for online shops. With the continuous growth of e-commerce, payments via the Internet are also on the rise; at the same time the demands on financial services providers, payment services providers and online retailers are increasing.
52 THE GAMES MAKERS | GAUSELMANN 53 New Media
Sports betting the latest ECJ ruling, companies with an EU software components has generated a high licence are currently permitted to offer sports level of acceptance with end users; especially betting in Germany. in Germany.
The Gauselmann Group entered the internation- The stationary version as betting shop or al sports betting market over a decade ago with self-service terminal at qualified points of sale, a controlling interest in the long-established as well as online sports betting offerings includ- Austrian sports betting company Cashpoint. ing an XTiP betting app, can be reliably adapted While in the Danish and Austrian target markets to the applicable laws and regulations in the re- the sales network has continuously evolved spective target markets. Contents and services under the Cashpoint brand name, in Germany can be securely and easily retrieved using per- above all the company is striving to catch up sonal customer cards. with the current market leaders with the XTiP brand. As well as operating its own XTiP bet- Certification in accordance with DIN ISO 27001 ting shops such as those in Kiel and Rendsburg, guarantees the highest security standards in or since March 2016 with a flagship store in this business segment. Duisburg, the Gauselmann Group also offers corresponding business partners in Germa- ny the possibility to utilise the successful XTiP concept for franchisees.
The software for the sale and management of sports bets is developed in-house. This also applies to the sports betting terminal “Merkur Bet Book” with its optimum user interface. The successful combination of the hardware and
At the “Merkur Bet Book” players can display XTiP’s full range of betting products and place their bets directly.
The Gauselmann Group offers bricks-and-mortar land-based sports betting sales outlets as well as online offerings Germany-wide under the name XTiP.
Although the European Court of Justice ruled in state gambling monopoly, which many courts its decisions of September 2010 that the state have repealed, de facto still exists. For that rea- gambling monopoly is incompatible with Euro- son, among others, private providers without a pean law and required governments to adapt German licence should not be hindered by Ger- their national regulations by the end of 2011, man law enforcement authorities. the legal situation in Germany remains unclear. German and European law still run contrary to While in 15 federal states an inter-state adapta- one another. In its decision of 4 February 2016, tion to applicable EU law has yet to happen, the ECJ reinforced the position of private sports in 2012 the progressive Ministry of the Interior betting providers, who have hitherto operated in Schleswig-Holstein issued numerous online in a legal grey area. The ECJ ruled that German betting providers with limited licences to accept gaming regulations violate EU law, because the and broker sports bets under state law. Under
54 THE GAMES MAKERS | GAUSELMANN 55 Prevention Responsible Gaming Commission
The Gauselmann Group takes its responsibil- ity seriously, addresses the issue of youth and Responsible Gaming Commission player protection and sets pioneering standards in these fields.
Even before the government defined binding rules for the implementation of youth and play- er protection measures, the Gauselmann Group developed a social programme of its own. This is annually evaluated, reviewed and adapted to meet the latest requirements and forms the basis for effective consumer protection.
Information as a key strategy: to underscore the importance the company attaches to preven- tion, a separate business segment was set up to
deal with these issues. The Gauselmann Group Prof. Jörg Häfeli central prevention department initiates, coor- (Lucerne University of Applied Sciences and Arts, dinates and monitors all consumer protection Switzerland) activities of the group. The main tasks include developing, implementing and evaluating so- cial programmes, regular internal and external reporting, training and qualification of staff and continuous dialogue with all relevant stake- holders (players, family members, helpline, research institutions, politicians, associations and staff).
The central prevention department is supple- Entry control at a CASINO MERKUR-SPIELOTHEK mented by three external and internationally recognised experts who advise and support the Gauselmann Group within the framework of its Pieter Remmers Requirements for implementing measures to Responsible Gaming Commission. (Assissa Consultancy Europe, the Netherlands) protect minors and gamers have increased steadily over the past few years. These require- In cooperation with the central prevention de- ments present great challenges and call for partment, the commission‘s external scientists providers to demonstrate a high degree of and experts continuously analyse, assess and responsibility. optimise the prevention activities of the Gau- selmann Group, thus ensuring that the latest For the Gauselmann Group as a manufacturer scientific findings flow into the group’s preven- of amusement and gaming machines and an tion work. exemplary operator of gaming venues, the issue of prevention has been an integral part of International and national studies carried out in the company’s philosophy for many years. The recent years show that the number of people group has played an important role in promot- who develop a problem with playing games for ing the topics of responsible gaming and pre- money is consistently below one per cent of the vention – not only within the group, but also at population. The latest study by the “Bundes- industry association level and consequently for zentrale für gesundheitliche Aufklärung – BZgA” Roman Neßhold David Schnabel (Institute of Gambling and Addiction, Austria) (Responsible Gaming Officer of the Gauselmann Group) the whole industry. (Federal Centre for Health Education) bears out these findings.
56 THE GAMES MAKERS | GAUSELMANN 57 Prevention
in addition to a self-test, contain contact details Development also got under way on an alter- for helplines and counselling services in the native entry control system based on biometric vicinity of the respective venue. facial features. The “Face-Check System” com- bines the legal requirements and the expec- The basis for this individualised player protec- tations of the players in an ideal way. In ad- tion information is an in-house helpline data- dition to the data economy of the “Face-Check base that has been maintained and regularly System” relating to the processing of personal updated since 2011. The database currently data, this system improves the admission pro- contains around 900 addresses. Apart from cess, as well as helping to more reliably iden- dissemination via the player protection flyers, tify underage and banned players through indi- this address list is also available via a query tool vidual system messages. on the Gauselmann Group website and can be viewed and used by players and their relatives to find help in their local vicinity.
Admission systems: the diverse regulations re- lating to entry controls have prompted the group to develop innovative and made-to-meas- ure admission systems. The “Merkur Check-In” was the first entry control system to qualify and be approved by the Hessian Ministry of the In- terior for use in accordance with the provisions of the Hessian arcade law; it is continuously upgraded and provided with more functionality.
“Face-Check” is a biometric entry control system that is currently under development The Gauselmann Group stands for responsible gaming and has complied with the legal requirements on consumer protection for decades.
However, despite this stable situation, iden- modules. This ensures that awareness for this tifying and seeking dialogue with players who responsible task is continuously refreshed and have a potential gaming problem is and will strengthened. Only staff who are aware of their remain the central starting point and at the duties and responsibilities with regard to pre- same time the biggest challenge for prevention vention are able to implement player protec- activities. tion measures effectively in the interests of both players and the group. Eyes and ears for responsible gaming: motiv- ated and qualified staff are vital when it comes Rapid and uncomplicated help: it is equally to transferring the defined prevention meas- important to provide players and their families ures into practice in a targeted and successful with basic information about the possible risks way. For this reason, the issues of youth and of gaming, as well as where to turn for sup- player protection are an integral part of all port and assistance. The company therefore training and qualification modules. Each year, produces individual “Gaming rules – informa- the Gauselmann Group hosts over 11,000 train- tion for players and their families” respon- ing sessions relating to these topics in various sible gaming flyers for each gaming venue that,
58 THE GAMES MAKERS | GAUSELMANN 59 Employees and training
arcade” from Focus and “Top Service Germany” from ServiceRating GmbH in collaboration with the Handelsblatt newspaper and the University of Mannheim.
In the completed 2015 financial year, 81 young trainees completed their two-, three- or even three-and-a-half-year apprenticeship with the company and started out on the career ladder. Some of these trainees excelled as best-in- class and with outstanding grades in regional chambers, at federal state level and, not for the first time, also at national level.
As Germany’s best training graduate in 2015, the Association of Chambers of Industry and Com- merce (DIHK) honoured Maria Nitsch, who qua- lified with the Gauselmann Group in the indus- try-specific apprenticeship profession “coin-op service technician”. The renewed best nation- al graduate honour can also be viewed as an endorsement of the excellent training manage- ment within the Gauselmann Group. The group, initiated by Paul Gauselmann, was instrumen- tally involved in the conceptual design and es- tablishment of the profession “coin-op service technician”, as well as the apprenticeship pro- Armin Gauselmann congratulates Maria Nitsch, Germany’s best coin-op service technician graduate fession “coin-op specialist” from the outset.
These two industry-specific professions were officially recognised and approved as appren- In addition to a competent management team, Training qualified junior talent in administrative ticeship professions in 2008 after years of cam- one of the key factors in the Gauselmann and commercial/technical professions has been paigning on the part of well-known lobby Group‘s success is above all motivated and integral to the philosophy of the family- groups, institutions and companies. In the wake capable employees. With their know-how and managed Gauselmann Group for many decades. of the restructuring of the training guidelines commitment, they contribute on a daily basis Because all training offerings are needs-based, for industry-specific training in the coin-op to the sustained success story of the products trainees can be offered interesting job pros- gaming industry which took effect in 2015, these and services offered by the group. The entre- pects after they have completed their training. two professions were merged into the appren- preneur family and the Management Board of Through this, the Gauselmann Group foresight- ticeship profession “coin-op specialist”. The Gauselmann AG would like to take this oppor- edly helps to combat the impending skills apprenticeship is based on a period of three tunity to thank all employees for the commit- shortage within the industry. Additional exemp- years and offers trainees from the Gauselmann ment shown. lary and modern personnel development meas- Group the possibility to specialise in the field ures further help to strengthen staff loyalty and of coin-op service with a focus on “commercial At the end of the past business year, there were identification with the company. The Gausel- business processes” and “customer relations”. 9,240 employees working for the Gauselmann mann subsidiary CASINO MERKUR-SPIELOTHEK As the industry’s largest training company, the Group altogether, 6,135 in Germany and 3,105 was voted Focus magazine’s “Top National Gauselmann Group contributed its extensive abroad. Germany-wide, 187 young people were Employer” in 2015 and 2016 and, also in 2016, expertise to the restructuring of the training doing an apprenticeship or traineeship. received the accolade “Most popular gaming guidelines.
60 THE GAMES MAKERS | GAUSELMANN 61 Employees and training
The Gauselmann Group demonstrates a high This intensive employee development helps level of social competence not only in the region, to foster a healthy climate among the work- but also within the company. With an extensive force and strengthen staff loyalty. Thus on the offering through the company sports associ- occasion of the annual jubilee celebration, ation, exemplary health management and the Paul and Armin Gauselmann thanked 53 long- Merkur Seniors Club, the group is also a model serving employees and selected retirees for employer outside the work environment. The their 25 and 40 years of service, their loyalty to company sports association Betriebssportge- the company and their commitment. meinschaft MERKUR Gauselmann e.V. with its approximately 1,000 members and 23 discip- Paul Gauselmann and 26 former employees lines is not only the largest in the Minden-Lüb- founded the Merkur Seniors Club in 1998 in becke district; it is also one of the largest in order to maintain active contact between the North Rhine-Westphalia. Athletes in the various company and former colleagues. Under the disciplines demonstrate their sporting talent in motto “Once Gauselmann, always Gausel- numerous competitions and tournaments. mann”, former employees can remain in con- tact with the eastern Westphalian games Apart from the company sports association, makers even after they have retired. At regular health care and prevention also play an important meetings and group trips former colleagues role within the company. As part of the “Fit stay in touch after leaving the company and & Fun by Gauselmann” occupational health cultivate their connection to their former em- management system introduced in 2008, sport- ployer. For Paul Gauselmann, his annual appear- ing and medical initiatives at the workplace ance at the Annual Meeting of the Merkur are continuously being offered and promoted. Seniors is also something of a tradition. As The measures implemented to support em- guest of honour he tells the Merkur Seniors ployee health range from courses to improve about the latest developments in the com- back health, encourage people to quit smoking pany and the industry. The Merkur Seniors Club or preventive medical check-ups such as skin currently has 100 active members. screening, flu jabs or stroke prophylaxis. In 2015, the Gauselmann Group received the “Best Place to Learn” quality seal
For the past 34 years, company founder Paul All places in the 16 different apprenticeship pro- Gauselmann has been President of the “Ver- fessions were filled in 2015. As many as 2,500 Training qualified junior talent has been integral to the philosophy of the family-managed Gauselmann Group for decades band der Deutschen Automatendindustrie e.V.” candidates applied for a training place with the (German Industry Association for Coin-operated group. Amusement and Vending Machines), a role in which he campaigns for the future of commer- All employees are offered regular training and cial gaming and the interests of the German advanced education courses at Schloss Benk- amusement and gaming industry. hausen, the company’s own training centre. Qualified and needs-oriented training and In the 2015 financial year, 60 young people be- further education is not only an integral part of gan their training in the Gauselmann Group, the corporate philosophy, it is at the same time 35 of them as “coin-op specialists”. The number an expression of the social competence of the of training places in the administrative and com- Gauselmann Group as one of the region’s most mercial/technical fields, including dual train- important employers. ing courses, also remained unchanged at the previous year’s level in the past business year.
62 THE GAMES MAKERS | GAUSELMANN 63 Corporate commitment to the region
the social fabric of the Altkreis Lübbecke district support his own regional club; the company also and the town of Espelkamp. In 2015 alone, the sponsors supra-regional tennis tournaments Foundation donated a total of 200,000 euros for such as the international ATP-500 Gerry Weber 90 different regional projects. With the establish- Open tennis tournament. Professional tennis ment of the Gauselmann Family Foundation player Tommy Haas and Sabine Ellerbrock, one in 2016, the Paul and Karin Gauselmann Foun- of the world’s top seeds in wheelchair tennis, dation receives regular financial support from are also among those sponsored. Apart from the annual dividend payment. For her tireless tennis, other sports such as riding, shooting or cultural and social commitment, last year Karin football (for example FC Preußen Espelkamp Gauselmann was granted honorary citizenship and DSC Arminia Bielefeld) enjoy the entre- of the town of Espelkamp. Paul Gauselmann preneurial family’s goodwill and benefit from has been an honorary citizen of the towns of the sponsoring of the Gauselmann Group. In Lübbecke and Espelkamp since 2004. 2014, Paul Gauselmann was the first member in the club’s history to be honoured by FC Preußen In 2008, the Gauselmann Group established the Espelkamp with the Golden Honorary Pin for his „ “Stiftung Kinderfamilien-Hilfe” (Children-Family exceptional commitment. However, the games Support Foundation). The endowment capital makers“ also support more exotic sports, for ex- from this Foundation benefits families with ample in the past business year Matthias König, underage children that are experiencing tem- from VfB Fabbenstedt, who set the world record porary financial difficulties because one or both on a recumbent bike, as well as his team col- parents have overindulged their passion for league, Ralf Golanowsky. Matthias König holds gaming. both the six-hour world record on a recumbent bike in the fully faired aerodynamics class and Besides the many social projects, the Gausel- the 100-mile world record on a recumbent bike mann family of entrepreneurs is also actively in the unfaired aerodynamics class. involved in sports and supports a large num- ber of local clubs in the amateur and profes-
Karin and Paul Gauselmann present a donation to German Cancer Aid sional leagues. Smaller clubs in particular are often dependent on sponsoring or donations in order to fund projects and investments. In the professional sphere, the region has for decades The Altkreis Lübbecke, headquarters of the birthdays Paul and Karin Gauselmann came boasted first-class handball from the TuS N-Lüb- Gauselmann Group, the towns of Espelkamp up with a special idea: instead of gifts, they becke club. As the main sponsor of this first na- and Lübbecke and the entire eastern Westpha- asked for donations to German Cancer Aid. The tional division team, the eastern Westphalian lia-Lippe region have always been especially total sum added up to 160,000 euros, which the Gauselmann Group contributes to the team’s close to the hearts of the Gauselmann entre- couple handed over to the President of German success not only with financial support but also preneurial family. This regional commitment is Cancer Aid in April 2015. through personal engagement on the part of manifested in support for clubs and charitable family members. institutions, preventive health care initiatives, To mark the 80th birthday of Senior Director as well as investments in the preservation Karin Gauselmann, the endowment capital of Company founder Paul Gauselmann has a and restoration of local buildings and monu- the Gauselmann Foundation was doubled from particular passion for tennis. With his Espel- ments. For Paul Gauselmann and his family it 5 to 10 million euros. At the same time as the kamp-Mittwald tennis club, he was 2010 Ger- has always been an affair of the heart to give capital increase, the name of the Foundation man champion in the Men’s 65 team and West something back to the region and share their was changed to Paul and Karin Gauselmann German runner-up in the Men’s 75 team in 2013. corporate success with the local population. Foundation. Since its inception in 1999 on the The 1st Men’s team of the TV Espelkamp-Mitt- Apart from numerous donations to social and occasion of Paul Gauselmann’s 65th birthday, wald has played for many years at the top level, District government president Marianne Thomann-Stahl (right) and Espelkamp’s mayor cultural projects, on the occasion of their 80th the Foundation has become an integral part of including in the 1st and 2nd national tennis Heinrich Vieker (left) congratulate Karin Gauselmann on being granted honorary citi- league. Paul Gauselmann is not only keen to zenship of the town of Espelkamp
64 THE GAMES MAKERS | GAUSELMANN 65 Corporate commitment to the region
Visitors can also experience the historical flair In addition to a varied artistic and cultural pro- at the “Deutsches Automatenmuseum – Samm- gramme, a stop at the café/restaurant “Die lung Gauselmann” (German Coin-Op Museum – Rentei” completes a visit to Schloss Benkhau- Gauselmann Collection) at Schloss Benkhausen. sen. During the week, the café/restaurant Around 200 selected historical coin-op ma- mainly provides evening meals for the hotel chines from previous centuries are presented in guests and at the weekends it opens its doors a permanent exhibition at the museum’s new to visitors to the castle grounds and the Ger- premises; additional exhibits are displayed at man Coin-Op Museum as a new regional and special exhibitions. Last year, visitors to “ELVIS supra-regional excursion destination. and the JUKEBOX” were able to admire original exhibits from the Gelsenkirchen initiative group as well as historical jukeboxes from the Gausel- mann collection.
The English Garden at Schloss Benkhausen is a popular destination above all for nature lovers. An old stock of trees planted by the aristocratic former owners, coupled with a newly land- scaped park, provides a unique setting to linger and relax. The castle garden has recently been enhanced by the planting of three new trees: an 80-year-old common oak tree and an equal- ly old tulip tree to mark the milestone birthdays of Paul and Karin Gauselmann. The Benkhausen History Society also planted a Japanese emperor
The restoration of Schloss Benkhausen as a training and seminar centre was completed in 2015 oak in recognition of Paul Gauselmann’s cultu- ral engagement. In order to bring the cultural treasures and riches of the castle to life for the general public, the family burial tombs of the Projects or institutions in the field of preven- A further focus lies on preserving the region’s barons of Schloss Benkhausen with the moat tive health care also receive special attention. cultural heritage. The Gauselmann family pri- ring and a yew tree tunnel were restored in Among many other projects, as the long- vately acquired and personally financed the full 2014. standing chairman and board member of the restoration of the 500-year-old Schloss Benk- “Schlaganfall” – Neurologische Klinik Minden hausen. In a three-year restoration project, the e.V. Förderverein (charitable trust for the Min- old castle belonging to the Wittekindshof Foun- den Stroke-Neurological Clinic), Paul Gausel- dation was converted into an ultra-modern and Some 200 historical exhibits are on permanent display at the German Coin-Op Museum mann again sponsored the “Schlaganfall-Info- exclusive conference and seminar venue with Tour” (stroke information tour) in 2015. After 14 11 seminar rooms and 38 single/double rooms years, interest in the tour is unabatedly high. with a total of 50 beds. The official opening Some 300 citizens registered for the free check- took place in May 2015. Today, the castle is used up. Right from the start of the tour, all the as a training centre for the group and rented appointments were booked up. In 2014, Paul out for external seminars and events. The castle Gauselmann also donated 60,000 euros to the is also a popular venue for weddings. In 2015, Urological Unit of Lübbecke Hospital to allow a 24 couples made their civil marriage vows in new ultrasound imaging device to be bought. the castle’s bespoke wedding chamber.
66 THE GAMES MAKERS | GAUSELMANN 67 Outlook on the business development for 2016
Espelkamp headquarters Lübbecke production site with sales department
The company headquarters in Espelkamp and Lübbecke will continue to be the heart of the company
As an integral part of the global gaming busi- encouraging growth going forward. Although business segments. However, the most import- tainties on the part of customers, making the ness, the family-managed Gauselmann Group the regulatory restrictions had a pronounced ant prerequisite for implementing this approach market dependent in the medium term on the is continuously exposed to new challenges. impact on the business development in some and achieving long-term successful operation is regulatory framework. Thus the State Treaty on Gambling in Germany areas in 2015, growing international business sustained stable legal and economic conditions that came into force in 2012, new state arcade and strong product innovations made it pos- in the respective country. The Gauselmann Group started to adapt to laws and increases in the municipal amusement sible to more than compensate the negative the changing markets some time ago and will tax are putting pressure on the entire gaming effects in nearly all segments, so that the 2015 The global business prospects are positive, as again present attractive product innovations industry in Germany and stifling its economic financial year closed on a positive note. current projections by the industry associations in 2016. The international trading companies prospects. In order to compensate any revenue and Ministry of Economic Affairs confirm. Accord- in the Merkur Division on the whole posted losses this situation may bring about, the Gau- At the end of 2015, the Gauselmann family of ingly, the Gauselmann Group is anticipating a a positive result. The Gauselmann Group suc- selmann Group, as it has in the past, will con- entrepreneurs paved the way for a sustainable continued positive trend in the three business ceeded in penetrating the market with its tinue to tap into new and international markets and stable future of the group by transferring divisions Merkur, Spielothek and New Media in products especially in the UK and Spain, and and business segments and develop numerous all their shares in the company to the newly es- the coming business years. achieved satisfactory revenues and earnings in innovative and attractive amusement machines tablished Gauselmann Family Foundation, thus these markets. It is planned to expand business and gaming software that repeatedly set ensuring the company continues to be run in its The Merkur Division consolidates the develop- activities here in the future. benchmarks in the gaming industry. Moving present form. ment, production and sales of amusement and forward, the group intends to strengthen its gaming machines with and without prizes, as focus on its existing core business. Thus 2015 With respect to the 2016 financial year, the com- well as money management systems. Despite was characterised by securing market shares in pany is cautiously optimistic, given that from the difficult political and legal parameters that the existing markets and developing new sales mid-year the Amended Interstate Gambling have prevailed over the past few years, sales and development locations. Treaty is likely to mean further restrictions in revenues in the national segment developed Germany. The company will continue to expand positively in the 2015 financial year. However, Building on this strategic objective, the group business activities in the international mar- the market trend moving forward remains un- will continue to expand steadily and generate kets. Selected acquisitions are planned in all clear due to the legislative situation and uncer-
68 THE GAMES MAKERS | GAUSELMANN 69 Management Board
The Spielothek Division operates nationally state Gambling Treaty contravenes European and internationally in the arcade sector. Nation- law. In its judgement made in April 2016, the al business of CASINO MERKUR-SPIELOTHEK Administrative Court in Wiesbaden also ruled developed satisfactorily despite the legal re- that the restriction in the number of sports strictions, after the company succeeded in betting concessions foreseen by the Amended partly compensating the disadvantages arising Interstate Gambling Treaty is contrary to from the more stringent regulatory framework. European Union law. The Court views the short- Despite stricter smoking bans, longer closing comings of the concession process as being times and restricted service possibilities, over- a lack of transparency and proportionality. all revenue even increased over the previous Restricting the number of sports betting conces- year. For 2016, careful selection of locations and sions to 20 represents an unlawful intervention optimised arcade management will continue to in the fundamental freedoms of the EU. This be the most important factor in stabilising the paves the way for all those applying for conces- company’s business. The international arcade sions to develop their sports betting business. The segment served by CASINO MERKUR Internation- Gauselmann Group intends to make further al also proved highly successful. This positive inroads into this interesting market. In order development is primarily accounted for by the to provide investment security, however, a acquisition in 2012 of the British arcade chain reliable regulatory framework is needed, Praesepe and the venues in the Czech Repub- which the premiers of the federal states are lic. Business activities will be further expanded currently negotiating. Internationally, these here in the coming years in order to generate business segments are already established and synergy effects between development, produc- regulated. The Gauselmann Group has already tion and machine operation. been granted several licences that enable it to develop international markets in the land- The Gauselmann Group took the decision to based and online segments. enter the casino market in 2014. It has operated the Merkur Spielbank in Leuna-Günthersdorf With the decisions taken in the past and the since December 2014 and opened a second groundwork for the strategic direction laid, the casino in Magdeburg in April 2016. Following Gauselmann Group sees itself well-positioned this successful debut in the casino business in to attain its ambitious goals in the coming Germany, the company decided to acquire a years. 40 per cent share in Germany’s largest casino in Berlin.
In the New Media Division, national and in- ternational activities relating to online gaming, financial services and sports betting are sub- sumed. In the sports betting segment, clear statutory regulations in Germany (with the exception of Schleswig-Holstein) are still lacking. According to a European Court of Justice ruling of February 2016, the Amended Inter- 1st row, from right: Paul Gauselmann Chairman of the Management Board, Armin Gauselmann Vice-Chairman of the Management Board 2nd row: Dr Werner Schroer Technology 3rd row, from right: Jürgen Stühmeyer Merkur Division, Manfred Stoffers Marketing • Communications • Political Affairs 4th row: Dieter Kuhlmann Spielothek Division 5th row, from right: Alexander Martin New Media, Alexander Vleeming Finance
70 THE GAMES MAKERS | GAUSELMANN 71 Supervision and advice Supervisory Board
The Supervisory Board was kept regularly in- formed through oral and written reports about the development of the company’s business and its financial situation. All material business events and transactions were discussed with the Manage- ment Board in regular meetings.
The consolidated financial statements as at 31 December 2015 and the Gauselmann Group Management Board Report were audited and approved and issued a closing statement by Dr. Woelke Treuhand-Gesellschaft mbH, Herford. After reviewing the consolidated financial state- ments and Management Board Report, the Super- visory Board concurs with the audit opinion of the Manfred Grünewald Karsten Gauselmann Max Walberer auditor and raises no objections. The Supervisory Chairman, former Managing Partner of Hotelier Entrepreneur Board hereby approves the financial statements tobaccoland GmbH & Co. KG prepared by the Management Board.
The Supervisory Board thanks the entrepreneurial family, the Management Board and the company’s senior executives for their successful entrepreneur- ial work, as well as all employees for their out- standing commitment and excellent achievements in 2015. The positive overall result cannot be taken for granted given the background of the difficult conditions in the German core market.
Espelkamp, April 2016
Dr Wolf-Albrecht Prautzsch Richard Trachok Gerhard Böger Banker, retired Attorney (USA) Banker, retired
Manfred Grünewald Chairman of the Supervisory Board
72 THE GAMES MAKERS | GAUSELMANN 73 Publishing details
Published by: Gauselmann AG Corporate Communications Responsible for content: Mario Hoffmeister M.A. Merkur-Allee 1–15 32339 Espelkamp www.gauselmann.de
Project management: Nils Rullkötter Project assistant: Ilka Ahlers Edited by: Claudia Hecke, Mario Hoffmeister, Irina Sophie Pötzschke, Mareike Rein, Nils Rullkötter, David Schnabel, Katrin Welland
Concept and design: Lothar Hartwig adp Gauselmann GmbH/Advertising department
Translation: Text first, Hamburg
Photography: Marco Moog, Hamburg Judith Wagner, Düsseldorf Franz Bischof, Hanover Foto Pescht, Lübbecke Claudia Schiffner, Bremen Edwin Dodd, Hille Markus Jäger, Bielefeld Onno Brandis, Bielefeld Christoph Haake, Hamburg Ilex Media, Lübbecke Olaf Striegan, Leipzig Watchara Rojjanasain, 123RF
Printed by: altmann-Druck GmbH, Berlin Printed on Maxisatin, FSC®-certified
Espelkamp 2016
74 THE GAMES MAKERS | GAUSELMANN 3 THE GAMES MAKERS | GAUSELMANN
The business year of the Gauselmann Group
www.gauselmann.com 3