German lottery intermediary Faber to cut 120 jobs amid financial difficulties

German lottery intermediary Faber has begun substantial job cuts amid financial difficulties. The company plans to let go of 120 of its roughly 315 employees, including 71 positions in the call centre and 41 in administration.

The company says declining demand for lottery participation by post, rising advertising and postage costs, and changes to gambling regulations governing telephone sales are pressuring its services' profitability.

However, it noted that the growing digital lottery market is opening up new opportunities.

Founded in 1970, Faber organises lottery participation through syndicates and distributes winnings among participants. Founder Norman Faber once described the concept as follows: “If the Eurojackpot offers €90m ($100m), I only want €100,000, but with a 900-fold chance.”

Faber was a long-standing shirt sponsor of professional football club VfL Bochum. Another German football club, Borussia Dortmund, recently extended its sports integrity partnership with Sportradar, which will continue to conduct “detailed background investigations” into potential sponsors and commercial partners.

Meanwhile, in regulatory news from Germany, the regulator GGL published a new FAQ earlier this month explaining the rules governing online gambling advertising.

Under the 2021 State Treaty on Gambling, advertising and sponsorship for licensed gambling are generally permitted. The regulatory framework partly aims to channel existing gambling demand toward licensed and supervised operators while imposing controls to protect players and minors.

However, restrictions vary by gambling product and advertising format.  

The 2021 State Treaty is due for review soon. Dr Joerg Hofmann, Senior Partner at Melchers Law and contributor to Global Gaming Insider, discussed the upcoming review and the challenges facing the regulated market in our November magazine issue.