A Gauselmann spokesman said the company’s targets have been “far exceeded”. Around half of the increase in turnover results from company purchases in the last two years. The domestic and foreign businesses currently each contribute around 50 per cent to the total turnover. In the domestic market in 2006 the Gauselmann Group has been able to significantly increase its market share, although the year has been characterised by a number of unusual influences. The most important alteration was the new gaming directive, which came into effect on January 1, 2006. The maximum number of entertainment games machines with cash payout that can be installed in arcades was increased from ten to twelve and in the catering sector too, three machines instead of two can now be installed. However, at the same time in Germany 60,000 so-called Fungames machines have had to be dismantled and jackpot installations taken out. Against this background, the increase in turnover in Germany resulted mainly from strong machine sales in the case of innovative amusement games machines with cash payout. Internationally, the further opening up of the European cash-payout and amusement games markets was pushed forward under the umbrella of Merkur Gaming. Target markets are the Eastern European EU member states, but also Italy, Spain and the Netherlands. The product portfolio of the subsidiary company also includes, however, innovative entertainment for kids. A few days ago, the Russian subsidiary Merkur RUS obtained the necessary state licence for the new production works in Novgorod. The operating company Merkur-Spielothek suffered in 2006 from the effects of the politically-sensitive debate on turnover tax versus an existence-threatening gaming stake tax, growing pressure from increased rates of entertainment tax and naturally, the conditions of the new gaming directive. Against this background, Merkur-Spielothek Deutschland was forced to record a fall in turnover. The number of branches, due to these obstacles to investment, remained unchanged at 190 Merkur-Spielothek locations in Germany. Group-wide, on the German domestic market there were a total of 200 arcade locations. In other European countries however, the development of the operating sector was positive overall. The number of entertainment centres, under the brand name of Merkur Casino, increased from 43 (2005 fiscal year) to the current total of 65 locations in nine countries. Involvement in the new business sector of sports betting was extremely successful. In Austria, the company obtained a majority shareholding in CASHPOINT Sportwetten GmbH, Vienna, and a few weeks ago entry was made into the privatised sports betting scene in Italy. The subsidiary Merkur Interactive obtained the go-ahead for 76 betting shops, 157 betting acceptance agencies and a licence for Internet-based gaming throughout the whole of Italy. Preparations are being made for involvement in Spain (Madrid region) within the context of the corresponding legal framework conditions. In the international casino-machines business, despite the political freeze on the Russian market, Atronic has been able to achieve a significant increase in turnover with a worldwide product offensive. A special influence here is the Russian market, in which under current conditions it is barely possible to supply any machines. Growth potential has therefore been generated by Atronic principally in North and South America and in the region of Asia. The market introduction of so-called licence products has taken place successfully in the USA. In the commercial sector of multi-location casino jackpots, market penetration by the new jackpot system e-million has been consistently pushed forward. This product is also causing a stir in Europe: Holland Casinos alone are soon to install over 100 machines.

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