Spielbanken Niedersachsen to continue its fight with Merkur in Lower Saxony
German operator Spielbanken Niedersachsen GmbH (SNG) has announced an appeal after the failure of its lawsuit against the loss of its licenses in Lower Saxony, saying it will ‘exhaust all legal options.’
Last week, the Administrative Court of Hanover confirmed the legality of the award of the casino concession to the Merkur Group. Merkur Spielbanken, based in neighbouring East Westphalia, emerged victorious from the award procedure carried out by the Lower Saxony Ministry of Finance.
SNG Managing Director Max Rösle said: “Our primary goal remains to secure the future of Lower Saxony’s casinos and the jobs associated with them. We remain firmly convinced that the award and the procedure for doing so did not meet the legal requirements of transparency and fairnes.”
SNG, who has previously operated all ten casinos in the country, lost out in the latest tender in November 2023. It claimed that the procedure had not been carried out properly. The court ruled differently.
Operation of the casinos should have been transferred to the new license holder Merkur, the only applicant in the procedure besides the SNG, as early as September 2024. Due to the ongoing legal wranglings though, SNG has been allowed to continue operating the venues so far. The Ministry of Finance had granted it a transitional licence limited to a maximum of one year in order to ensure uninterrupted operation.
The once state-owned SNG has been the operator of casinos in Lower Saxony since 1995. In 2005, the company was privatized, with Casinos Austria International from Austria becoming its owner. Ten locations are operated in Lower Saxony, including traditional table casinos in Hanover, Braunschweig, Bad Zwischenahn and Osnabrück as well as slot only casinos in another five locations.
Last week, David Schnabel, CEO of the Merkur Group’s casinos, said: “We welcome the decision of the Administrative Court, which provides clarity and confirms the transparent and structured award process from the beginning. Our concept is based on the highest standards in the areas of player protection, profitability and sustainable location development,” explains . “From our point of view, there was no doubt at any time about the legal conformity and transparency of the procedure of the Ministry of Finance. We are pleased that the court has confirmed this.”
Merkur Spielbanken now plans to quickly implement its plans for the further development of the locations in Lower Saxony. This includes the creation of additional jobs and a takeover offer for all existing employees. “Our goal is to optimize the locations and create long-term career prospects for the employees,” David Schnabel continues. “Our personnel concept achieved 100 percent of the possible points in the award procedure because we guarantee security for the entire existing workforce and will also create new jobs. Worries among the casino staff were unfounded at all times, even if the opposite impression was given from other sides.”
