Legal Review of the Tender Process

The Spielbanken Niedersachsen GmbH (SNG) received an interim permit from the State of Lower Saxony to temporarily continue operating its casinos. The company’s license was set to expire at the end of August, with a change in operators looming. However, criticism has surfaced regarding the tender process that awarded the Merkur Group (formerly Gauselmann Group) the contract in November.

Background of the Interim Permit

In a press release on June 12, Lower Saxony announced that SNG had been granted an interim permit to operate its ten casinos in the state. Despite the regular casino license expiring on August 31, the company can operate the casinos in Lower Saxony for up to one more year. The interim permit was issued due to legal scrutiny of the tender process, which had been won by the Merkur Group amidst public backlash in April.

Merkur Group’s Milestone at Risk?

Having secured the tender in November 2023, the Merkur Group was on track for a significant milestone. The gambling firm already runs 15 casino locations across several states in Norway, with an expansion into Lower Saxony considered a major achievement. However, public outcry over the tender process and SNG’s interim permit have cast doubts on the scheduled start of operations on September 1, 2024.

Job Security for Over 400 Employees

The decision to grant an interim permit was made by the casino supervision at the Ministry of Finance. Gerald Heere, the Finance Minister of Lower Saxony, emphasized the importance of keeping over 400 employees’ jobs secure and urged both the current and future permit holders to facilitate a smooth transition for a long-term, legally sound solution. The employees were previously informed that they would need to apply to the Merkur Group to retain their positions.

No timeline has been set for the legal review’s conclusion, but with the interim permit valid for only a year, a swift resolution seems likely.