Organizers face challenges due to geolottery.
A year after the introduction of "Logeo", a geolottery in Baden-Württemberg, things aren't going as planned. The organizer is now suffering losses with every draw. This innovative lottery game now risks collapse.
The concept didn't seem bad; winners of a Logeo lottery not only win money for themselves, but also provide funds to their local neighbors who take part. In addition to a €100,000 grand prize, €20,000 is given to participants living near the winner. Lotto Baden-Württemberg had high hopes for this idea when it launched around a year ago, given the popularity of geocaching and targeting a younger demographic. They aimed to create a "neighborhood lottery", with players participating for the benefit of their community.
However, the game hasn't fared well. While younger players comprise 50% of online sales (around 10% in the traditional lottery), only around 20,000 people take part. At €5 per ticket, these numbers equate to an average revenue of €100,000 each week, resulting in a loss of €20,000.
Georg Wacker, the newly appointed head of Lotto-Baden-Württemberg, understands that changes are necessary:
Things need to change ASAP.Georg Wacker, head of Lotto-Baden-Württemberg
After a thorough review, various options have been considered, including a change in the game's principles or even discontinuing it. The Supervisory Board is set to make a decision in mid-April. One potential solution is to move away from fixed winnings and implement pro rata payouts based on stakes. This could lead to a drop in customers, as potential profits would decrease. The situation is a challenge for those in charge, particularly since the lottery is in desperate need of an injection of fresh blood.
Innovation Is Essential
Although other federal states were considering introducing geolotteries, they are likely to abandon these plans following the example from Baden-Württemberg. Nonetheless, lottery developers should not be deterred. Failures aren't uncommon when updating existing products. What is required is a balance of continuity and new offerings, according to Georg Wacker.
It's clear that state-run lotteries need modernization. Sales of the classic 6 out of 49 have stagnated for years, and the youth demographic finds little appeal in it. They're more likely to turn to sports betting or casino games, or even join global lotteries over the internet. It's uncertain if the German Lotto can keep up. But it's worth a shot.
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Source: www.onlinecasinosdeutschland.com
