Questions arising over the procurement process: Could the Merkur Group's acquisition of Lower Saxony's gambling banks be under threat?
The Merkur Group, formerly known as Gauselmann Group, clinched the bid for Lower Saxony's casino license towards the end of 2023. From September 1, 2024, they'll manage ten sites for a period of fifteen years. However, the staff of the existing casinos in Lower Saxony are worried about their jobs, and the tender process itself is causing controversy.
Transparency in Tender Procedure is necessary
Melanie Reinecke from the CDU faction in Lower Saxony's state parliament has pushed for access to the documents related to the casino license award process, as shared in an official press release from the CDU.
As per a report in the reliable industry magazine ISA-Guide, the representatives of Spielbanken Niedersachsen GmbH, the previous license holder and operator of the ten sites, have expressed satisfaction with the transparency of the tender process.
Christian Urban, a member of the works council at Spielbanken Niedersachsen GmbH, seems somewhat skeptical about the legitimacy of the casino license award:
We question its fairness and demand a transparent disclosure of the procedure. This is crucial for us, affirming our underlying concerns that we've had since the beginning. – Christian Urban, member of the works council at Spielbanken Niedersachsen GmbH, source: ISA-Guide
Urban gains support from Jörg Eeldert, spokesperson for the economic committee, who calls for a transitional license until the matter is resolved. He is primarily concerned with safeguarding the 430 jobs at risk if the Merkur Group takes over the sites.
Merkur Intends to Preserve Jobs
The specifics of the tender process and its legitimacy continue to be a matter of speculation. However, the Merkur Group's statements seem to be receiving less attention.
David Schnabel, managing director of Merkur Spielbanken, has declared the intent to maintain and enhance the existing sites. Additionally, the integration of existing employees into the new organizational structure is planned.
Schnabel drew attention to the successful integration process in North Rhine-Westphalia, despite the associated challenges.
Existing Employees Need to Reapply with Merkur Group
The fact that the current employees of Spielbanken Niedersachsen GmbH need to reapply with the Merkur Group is indisputable. In accordance with information available on the company's website, the Merkur Group has scheduled numerous employer presentations in April 2024.
The job security of the current 430 employees at the Lower Saxony sites can't be definitively forecast. It's certain, however, that wages will rise, given that the necessary collective bargaining agreements have only recently been renegotiated.
The assertions of Spielbanken Niedersachsen GmbH regarding job insecurity and the threatened closure of several sites don't align with the Merkur Group's announcements.
According to our information, the Merkur Group has yet to shut down any existing casino in Saxony-Anhalt or North Rhine-Westphalia, but instead, has created new positions each time.
Despite the controversy surrounding the tender process for Lower Saxony's casino license, online casinos in Germany, such as the Merkur Group's platforms, continue to gain popularity. This shift in gaming preferences has led to a significant increase in the demand for digital skills, potentially offering new opportunities for those workers in the gambling industry who are worried about their jobs.
In light of the upcoming changes, online casino players in Germany, including those from Lower Saxony, may find a wider variety of gaming options available, as the Merkur Group aims to expand its digital offerings to cater to this growing trend.
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