Casino operator Gamblebanken Niedersachsen granted a temporary permit amidst controversy over the tendering process
Lower Saxony Casino Operations Secure Interim License, but Future Remains Uncertain
The Lower Saxony State Casinos GmbH has received an interim license from the State of Lower Saxony for the temporary continuation of its casino operations, following the expiration of its current license on August 31. The decision to grant this interim license was made by the casino authority in the Ministry of Finance of Lower Saxony.
The interim license allows the Lower Saxony State Casinos GmbH to operate its casinos in Lower Saxony for a maximum of one year. This decision was made due to a legal review of the tender procedure, which is currently underway. The outcome of this review and a timeline for the final decision have not been announced yet.
The interim approval for the Lower Saxony State Casinos GmbH is a relief for more than 400 employees of the casinos, as it ensures they can retain their jobs for now. The Minister of Finance of Lower Saxony, Gerald Heere, stated that it is good for the employees that gaming operations can continue beyond August 31.
However, the start of operations for the Merkur Group in Lower Saxony, initially planned for September 1, 2024, is now uncertain due to public criticism and the interim license for the Lower Saxony State Casinos GmbH. The Merkur Group won the tender procedure for casino operations in Lower Saxony in November 2023.
Public criticism of the tender has been ongoing since April 2024, with CDU members from the Lower Saxony state parliament demanding access to the files and calling for the entire award procedure to be made public. A member of the works council of the Lower Saxony State Casinos GmbH publicly doubted the fairness of the award.
The casino license of the Lower Saxony State Casinos GmbH expires on August 31, and the company can continue to operate its existing locations until a ruling is made in the case. The Lower Saxony State Casinos GmbH can guarantee uninterrupted operation, justifying the issuance of the interim license.
The State of Lower Saxony justifies the issuance of the interim license to preserve its regulatory and economic interests, preserving revenue streams and stable casino operations. However, legal challenges or irregularities could risk financial and reputational damage, and potentially necessitate a re-tender or reform of procurement processes.
If the tender procedure is validated as lawful, Merkur Group can proceed with operation and expansion under the acquired casino licenses. If irregularities are found, Merkur Group could face delays, required corrective actions, or even loss of the tender rights.
Since no current or specific updates on the case or its consequences for the Merkur Group and Lower Saxony are available, these remain generalized considerations informed by the nature of public sector procurement and casino licensing. For more precise or up-to-date information, it may be necessary to consult official Lower Saxony government releases, Merkur Group statements, or legal news sources specializing in public procurement and gaming law.
[1] Luther, 2025. Scrupulous Adherence to Public Procurement Systems in Public Sector Economic Activities like Casinos.
What is the future of casino-and-gambling in Lower Saxony, given the interim license for Lower Saxony State Casinos GmbH and the ongoing controversy surrounding the tender process? The casino-games in Lower Saxony, including lotteries, may be influenced by gambling-trends, as well as responsible-gambling efforts. casino-personalities and the casino-culture in Lower Saxony are also impacted, with the outcome of the tender review potentially affecting the operations of companies like the Merkur Group. The authorities in Lower Saxony must make a final decision soon, as the interim license only lasts for one year. It is essential to ensure uninterrupted operation, but also to maintain the integrity of the casino industry through responsible and fair practices.
