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Table of contents Page 2 of 19 Table of contents ....................................................................................................................... 2 1. Lotteries in the EU and Europe 2012 - Executive Summary .................................................... 3 2. Introduction and background .................................................................................................... 5 3. Tables and figures Table ........................................................................................................... 7 1a: Participating lotteries in the EU .............................................................................................. 7 Table 1b: Participating lotteries outside the EU ............................................................................ 8 Table 2: GGR 2012 in the EU by game category .......................................................................... 8 Figure 1: GGR 2012 in the EU by game category ........................................................................ 9 Table 3: GGR 2012 for EL members by game category ............................................................... 9 Table 4: Lottery sales 2012 in the EU by game category ........................................................... 10 Figure 2: Lottery sales 2012 in the EU by game category .......................................................... 10 Table 5: Lottery sales 2012 for EL members by game category ................................................. 10 Table 6: GGR development in the EU 2007 – 2012 by game category ...................................... 11 Table 7: Sales development in the EU 2008- 2012 by game category ....................................... 11 Annex A: Data collection and game category definitions ........................................................... 12 Annex B: Explanation of data fields asked for in the questionnaire ........................................... 15 Page 3 of 19 1. Lotteries in the EU and Europe 2012 - Executive Summary In 2012, the total economic activity measured as gross gambling revenue (sales minus prizes and hereinafter GGR) of state licensed and controlled lotteries in the EU (27) was €34.1bn. Compared with 2011, this represented a decrease of 1.5%1. This figure reflects the expenditure of European Union (27) consumers on activities offered by the state licensed national lotteries. In the period 2007 to 2012, the average annual increase in total GGR was 1.3%. Viewing the European Lotteries’ 77 members that reported in 2012, the total GGR was €37.1bn; of this, lotteries from Turkey, Switzerland, Norway and Israel account for almost 90% of the difference. In the EU, per capita GGR spending ranges from €4 in Romania, €7 in Lithuania, to more than €100 in Cyprus, Greece, Italy, Spain and the Nordic countries. Average spending across the EU was €68 . The corresponding figure for the 77 reporting European lotteries was €44, including the Russian Gosloto and Ural Loto lotteries covering a population of more than 143 million and spending at €0.6 per capita. Sales in the EU, measured for the four “lottery categories”, draw based games, instant tickets, sports games with pari-mutuel and fixed-odds, were €76.7bn in 2012 representing a decrease of 0.7% over that of 2011. A key characteristic of the state licensed lotteries in the EU is that they are required by law or through their licences to make payments to society. In 2012, such mandatory payments to society from the 53 reporting EU lotteries came to a total of €20.9bn in the form of taxes for treasury, duties, funds for sports or funds for other good causes. This was down 11.3% compared with 2011. This decrease is primarily accounted for by the decreases in Greece, Italy and Spain; if you exclude these 3 countries, then the 2012 change on 2011 is + 2.9%. On average, a state licensed lottery in the EU gives back to society as mandatory payments – as opposed to and not including sponsorships – 61% of each Euro it earns and some even return more than 75% as shown in table 19. In the largest EU member states the amount for society raised from lotteries exceeded €2.0bn (Italy €4.8bn, Spain €2.3bn, Germany €2.6bn, France €2.9bn, the U.K €3.5bn). On average, 1 The survey has data from 2006, 2007, 2008, 2009, 2010, 2011 and 2012. To make figures comparable over time, all lottery monetary figures from those years in currencies other than EUR have been converted into EUR using the 2.1.2013 European Central Bank exchange rates. In other words, all amounts in the report are reported in 2013 EURO value. Thus, looking at previous years reports, which have used exchange rates from 2007, 2008, 2009, 2010, 2011 and 2012 respectively; differences appear as a consequence of the change in exchange rates. Page 4 of 19 the amount that lotteries paid back to society across the 27 EU member states (population of 503.7 million) was €41 per capita in 2012 (€46 in 2011). The largest lottery activity in the EU is comprised of draw based games with brand names like Lotto, EuroMillions and Joker. This category of game, offered in all 27 EU member states, had sales of €49.2bn and a GGR of €22.4bn and accounted for 66% of total GGR. The category fell 2.6% from 2011 (GGR) but, seen over the period 2007 to 2012, it has grown an average of 0.4% every year. The second largest category is instant games with EU sales of €20.2bn (up 4% on 2011) and a GGR of €6.6bn representing some 19% of the total GGR. The category’s 2012 GGR lost 0.2% over 2011, having remained quite steady for the previous four years. Of the top four instant selling countries there were some large sales increases over 2011 in Czech Republic (97.9%), Portugal (81.7%) and Latvia (60.5%). National lotteries in 26 of the 27 EU member states (all except Greece) offer instant games and per capita spending ranges from €2 or less in, for example, Bulgaria, Germany, Latvia, Lithuania, Malta, Poland, Romania, the Netherlands and the Czech Republic to more than €20 in Cyprus, France, Italy and Sweden. Italy is the largest instant market with €2.9bn in GGR. The two sports games categories, pari-mutuel and fixed-odds wagering, totalled a GGR in the EU of €1.9bn (6% of the total GGR). However, sports wagering pari-mutuel continued its decline and GGR dropped 4% from 2011. The average annual decrease since 2007 has been 11.2% for this category to now totalling €552million. Fixed-odds betting saw an increase of 4% compared with 2011 and showed a total GGR of €1.4bn in 2012. National lotteries in 16 EU member states offered fixed odds betting in 2012 . EGMs (Electronic Gaming Machines) outside casinos include slot machines, apart from casinos, Video Lottery Terminals and Electronic Instant Lottery. They are operated by lotteries in 4 EU member states. This was the third largest category with a GGR of €2.8bn (8% of the total GGR); and a growth of some 3.4% over 2011. Direct full time employment by 52 EU lotteries in 2012 was above 40,200 whilst indirect employment typically in sectors selling lottery products accounted for more than Page 5 of 19 306,000 full time jobs 2. ONCE in Spain accounts for more than 19,000 employees, as the lottery considers the disabled people selling the tickets as full-time employees. Retail staff is normally not considered as full-time employees in other lotteries in Europe. Responsible gaming and measures to prevent problem gambling are an integrated part of lottery operations. In 2012, some 27 lotteries in EU reported spending of €16.3 million on measures to prevent problem gambling. Among all the EL members, the corresponding figures were 32 lotteries spending €22 million. Some 39 state licensed lotteries in 21 EU member states offered games on the Internet in 2012; this is 14 more than 2011 (25), as almost all German lotteries have started with Internet sales in 2012. EU lotteries reported a total GGR through the Internet of €1.9bn –slightly more from the €1.6bn recorded in 2011. The annual compound growth of GGR through the Internet has averaged 19% over the past five years. 2. Introduction and background This is the seventh report based on data gathered under the heading “ELISE” 3. The report covers key descriptive statistics about lotteries in Europe in 2012 and includes comparative statistics for the years 2006 – 2012 where appropriate. All monetary figures also from previous years 2006 to 2011, are calculated in EUR using the exchange rate from the Central European bank 2.1.2013, as noted in the above foot note 1. This implies slight differences in, for example , 2011 figures in this report and the same 2011 figures in last year’s report. The objective is to provide data on the economic activities of lotteries in the European Union member states (EU 27) and in Europe in general. The EL gathered the information for this report in spring of 2013. It is the most detailed and up to date data 2 The calculation is based on the London Economics study “The case for State lotteries”, Sept. 2006, which found a multiplier effect of 15. In other words, for each full time employee of the lotteries an average of 15 full time jobs was created in sectors where lotteries are sold. 3 European Lotteries Information Sharing Extended. Data are collected through a questionnaire to all EU lotteries and since 2008 also to non EU lotteries which are members of EL, and quality tested by a group of lottery experts. The group is comprised of: Ms. Alexandra Perrier, Head of International Relations and Mr Nicolas Cancel, Analyst, of La Française des Jeux,