Campaign contributions linked to gambling support

Germany's gaming laws linked to operator's political funding

WALK AROUND Berlin’s deprived neighbourhoods and you’ll see one on every street, sometimes two or three. Although a long-time feature of the cityscape, gaming halls have multiplied in the German capital in recent years, targeting the city’s swelling underclass, in particular jobless young men with a migrant background.

The 24-hour halls all look the same: blacked-out windows, computer slot and card machines and free soft drinks at the bar.

Calls to limit the gaming halls have so far fallen on deaf ears, but a newspaper investigation may have just found out why.

Germany’s biggest gaming hall operator Mr Gauselmann has showered the country’s political parties with more than €1 million in political contributions, broken up into small amounts to avoid breaching donation limits. German law obliges parties to publish all donations over €10,000; individual political donations cannot exceed €50,000 annually or €70,000 in an election year.

However gaming company founder Paul Gauselmann urged his managers in a letter to make several small donations to the four major political parties – €80,000 alone last year – to “encourage understanding” for the industry.

Mr Gauselmann confirmed the contents of the letter, published in Süddeutsche Zeitung newspaper, but denied he was trying to bribe politicians. He said he had donated for more than 20 years and deducted all donations against his income tax.

Critics of the industry suggest a connection between the donations and Berlin’s decision in 2006 to liberalise the gaming laws. The years since have seen an explosion in the number of gaming halls in major German cities and, according to a new study, a huge rise in the number of gambling addicts. More than half a million Germans spend €3.3 billion annually in betting shops, casinos and gaming halls.

Pubs and restaurants are allowed to operate three gambling machines each. Berlin has over 300 casinos and gambling halls and 37,000 gambling addicts, according to official statistics.

After public protests, city government promised to tighten up legislation, limit opening hours and double the city’s entertainment tax to 20 per cent.

Gambling companies have protested at the measures while the political opposition and critics see the proposals as half-hearted.

“The city government is offering an umbrella as protection against a flood,” said Maren Kern, spokeswoman for Berlin resident’s association BBU.