Ulrich Schmidt, chairman of Bally Wulff, the German AWP manufacturer, has resigned as president of the Forum, the association of German operating companies.
Schmidt’s resignation comes as a result of a split in the German industry, with the smaller operators’ association, the BA (Bundesverband der Automatenunternehmer) deciding to follow its own way in the industry’s fight against controversial plans by the German states to curb the gaming machine business.
The BA has around 800 members, but only about 20 per cent of the market, while the Forum, which is for all sectors, has 200 members and 80 per cent of the market, therefore containing the big arcade operating groups such as Löwen Play, Spielothek, Extra Play and Schmidt Group.
The smaller operators feel that the Forum may pursue an agreement with the 16 German Länder (state governments), which would favour only the bigger companies. The Länder have signaled their intent to impose new conditions upon the industry which would be catastrophic. Among the proposals – due to come in progressively over the next five years – would be the ending of multiple licensing, under which the maximum 12 machines per arcade can be overcome by having several licenses in one building; each 12-machine arcade would have a minimum distance between them; curbs on opening times and the service of food and drink; and strong controls on the vulnerable.
The resignation of Schmidt was not unexpected. He announced in May that he would not be available for re-election in November. He said: “It is time for a younger man to take over the running of the Forum.” This month the Forum appointed Schmidt as an honorary life member in recognition of his services to the industry.
The entire German industry is inevitably vigorously opposed to the proposals of the Länder, which it sees as protective – not of the vulnerable, but of the states’ interests in the casino market (many of them own or part-own casinos) and their share from the national Lotto. The states’ proposals, say the industry, are illegal under German federal law and the trade associations in Germany are pledged to fight the proposals in the German courts and, if necessary, in the European court.
