Economy

Gauselmann criticizes the reduction of arcades in Düsseldorf.

Gauselmann Group from Germany voiced disapproval towards the state capital of North Rhine-Westphalia for taking down amusement arcades, urging for fair dealings.

SymClub
May 18, 2024
3 min read
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A Gauselmann location in Lübbecke, NRW. Founded in 1957, the group now employs almost 12,500 people...
A Gauselmann location in Lübbecke, NRW. Founded in 1957, the group now employs almost 12,500 people - a real bargaining chip in the battle for the Merkur arcades

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Gauselmann criticizes the reduction of arcades in Düsseldorf.

The German gambling tycoon and new sports partner of Düsseldorf, Gauselmann, has expressed disapproval towards the reduction of amusement arcades in the city. In addition, the rebranded "Merkur-Spielarena" stadium for Bundesliga club Fortuna Düsseldorf continues to generate controversy.

The Gauselmann Group, based in Espelkamp, North Rhine-Westphalia, has expressed concerns over the plans to decrease the number of amusements arcades. The multibillion-dollar Merkur owner, which became the primary sponsor of the D-Dorf sports sector in July, finds the approach "infeasible," according to a spokesperson. With the future of more than 70 jobs and apprenticeships in jeopardy, the closure process seems too hasty, the group added.

The strategy would result in the loss of 75% of all gaming machines within three years, leading to a potential "complete collapse." The locations would no longer be sustainable financially, they say. Implementing these demands could be challenging, even if the company accepted the losses, as there's no legal assurance that the remaining establishments would remain operational. Moreover, closure rates in other areas are only 25%, so "fair" treatment is expected.

Furthermore, Gauselmann clarifies that they are not seeking favoritism in light of the current sports partnership. The GlüStV debate has been ongoing for over five years, making it impossible to link the latest contracts to the new guidelines, as stated by the news service RP-Online.

Context

The dismantling of amusement arcades has been on the agendas of German state governments and local authorities since the new State Treaty on Gambling (GlüStV) took effect in December 2017 - including in NRW's capital, Düsseldorf. The city houses 22 amusement arcades operated by Gauselmann. According to the new rules, 16 of these sites would have to close due to violating the new minimum distance regulation - with a 350-meter distance required between individual arcades and between arcades, schools, and daycare centers. The Rhine metropolis, home to 600,000 residents, must shut down approximately 100 gaming arcades or set quotas for the removal of machines.

The specific criteria for implementing these regulations in Düsseldorf are unclear, as they're still in the review phase, with "strict adherence to equal rights" being emphasized by the city's spokesperson. Every decree would be subject to legal challenges in the event of an appeal.

The situation near the Rhine metropolis' main train station, between Luisenstraße and Worringer Platz, is particularly tense: there are currently 18 casinos in close proximity, including several Merkur establishments.

The responsibility for shutting down the casinos lies with the Düsseldorf Ordnungs- und Verkehrsausschuss (OVA). Recently, the OVA developed a "meltdown principle" to accommodate the operators, encouraging the top four landlords in the region to provide closure proposals. In three of these cases, proposals were submitted on time, while Gauselmann was reportedly lagging behind. Instead, the group submitted an objection rather than a sequence of closures.

Despite being granted a five-year preparation period for the stricter regulations introduced in 2012, numerous lawsuits against the guidelines are emerging across Germany, including in the nearby Ruhr region, where 11 arcade owners are pursuing legal action against their closures.

Overshadowed by the Merkur Gaming Arena Debate

While discussions on closures take place, they are happening in the shadow of a far more contentious argument: Since the €40 million sponsorship agreement was reached in July, the D-Dorf city council has been scrutinizing the name changing of the former Esprit Arena to Merkur-Spielarena. The FDP and Green parliamentary groups raised strong objections, leading the CDU to follow suit.

Councilwoman Annelies Böcker echoes this sentiment: "We're making ourselves untrustworthy," she explains, noting that her evaluation also reflects the majority opinion of the local CDU parliamentary group and is also supported by its leader, Rüdiger Gutt. He previously branded Lord Mayor Thomas Geisel's conduct in the Gauselmann matter as "irrational and incompetent."

Even though there's a lot of animosity, the agreements between Düsseldorf and billionaire Paul Gauselmann have been signed for an entire decade. While it seems like Gauselmann only wants his money back if Düsseldorf doesn't want him because of the intense political opposition, this isn't great for the city council. It's not hard to imagine more controversies arising from their partnership. Update: Thankfully, some of Gauselmann's online casinos have been restored on the web.

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    Source: www.onlinecasinosdeutschland.com

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