by Sieghart
[Title Page and Preface]: The title page and preface of Rudolf Sieghart's 1899 work on public gambling. The author outlines his intent to analyze the history and current state of gambling in Austria to provide a basis for future reform, specifically addressing the 'Lotto question'. He emphasizes the historical roots of gambling in the Austrian character and acknowledges the support of various officials, including Finance Minister Dr. Kaizl. [Table of Contents]: A detailed table of contents for the book, listing nine chapters and nineteen appendices. Topics include the development of gambling in Europe, mercantilism in Austria, various types of lotteries (Zahlenlotto, Classenlotterien, Güterausspielungen), lottery loans, and the theory of gambling. [Introduction: The Concept and Legal Nature of Gambling]: The introduction defines gambling from both psychological and legal perspectives. Sieghart argues that gambling arises from the human desire to improve one's economic situation through chance rather than labor. Legally, he defines the 'Glücksvertrag' (aleatory contract) where the outcome depends on uncertainty. He distinguishes between games of pure chance, skill, and mixed games, while providing a technical definition of lotteries, including the roles of the entrepreneur and the player. [Introduction: Classification of Lotteries]: This section provides a systematic classification of lotteries based on five criteria: the nature of the entrepreneur (state vs. private), the circle of players (public vs. private), the type of prizes (money vs. goods), the type of markers (numbered vs. non-numbered), and the method of drawing (regular vs. irregular). It specifically defines 'Zahlenlotto' (Genoese style) and 'Classenlotterie' (Dutch style), and describes 'Glückshäfen' (fortune pots). [Historical Origins of Lotteries: From Antiquity to the Italian Renaissance]: This section explores the historical evolution of lotteries, distinguishing between ancient practices of drawing lots for property division and modern gambling. It contrasts Roman 'jactus missilium' (gift-giving) with modern taxation-based games, noting that Roman law generally prohibited gambling for money. The narrative details how Canon law's more lenient view in the 15th century allowed gambling to flourish in Italy, leading to the first structured commodity lotteries described by writers like Scaccia and Molina. [The Rise of State and Money Lotteries in Italy and France]: The author traces the transition from commodity lotteries to state-run money lotteries as a tool for public finance. It describes the introduction of the 'blanque' in France under Francis I and the later influence of Laurentius Tonty, whose annuity schemes (tontines) and lottery plans were initially unsuccessful but paved the way for the Loterie Royale. The section concludes with the lottery's abolition during the French Revolution as a 'despotic invention' and its subsequent restoration due to fiscal necessity. [Lottery Development in Holland and England]: A detailed look at the lottery systems in Holland and England. Holland is credited with developing the 'class lottery' (Classenlotterie), evolving through periods of municipal, leased, and state-run systems. In England, Queen Elizabeth I actively encouraged the first major lottery in 1569 to raise funds. The text describes the eventual 1808 parliamentary investigation into the social ills of lotteries, leading to their 1826 abolition in England, where gambling subsequently shifted toward betting. [Early German Lotteries and the 'Glückstöpfe']: This section examines the emergence of lotteries in Germany, particularly the 'Glückstöpfe' (fortune pots), which were often used by merchants to offload surplus or low-quality goods. It cites the 1581 polemic by preacher Sigismund Suevus, who condemned these games as devilish deceptions. The narrative follows the evolution into more structured class lotteries in cities like Leipzig, Nuremberg, and Berlin, eventually becoming state-managed institutions to fund charities. [The History of Gambling and Lotteries in Austria (16th-18th Century)]: The author details the history of gambling in Austria, noting the persistent but largely ineffective legal prohibitions against hazard games found in the Codex Austriacus. It describes the early 'Glückshäfen' (fortune harbors) and the first Austrian state lottery in 1707 (conducted in Hamburg). The section argues that the state's eventual move to monopolize lotteries was driven by fiscal interest and the mercantilist desire to prevent capital flight to foreign lotteries. [Austrian Economic Policy and Mercantilism under Leopold I]: This substantial section analyzes the post-Thirty Years' War economic exhaustion of Austria and the subsequent adoption of mercantilist policies. It profiles key thinkers like Becher, Hornick, and Schröder, who sought to emulate Colbert's French model by promoting domestic industry, restricting imports, and preventing the outflow of gold. The author discusses the establishment of state-supported factories (e.g., Linz wool, Neuhaus mirrors) and the struggle against the restrictive guild (Zunft) system to create a unified national economy. [The Oriental Company and the First Austrian Class Lotteries]: This section details the rise and fall of the Oriental Company (Orientalische Compagnie), founded in 1719 to monopolize trade with the Ottoman Empire. Lacking sufficient capital, the company turned to the first Austrian class lotteries (the 'hundredfold lottery') to fund its industrial ventures. The narrative describes the complex financial engineering, the eventual collapse of the company and its lotteries due to corruption and mismanagement, and the state's subsequent attempts to liquidate the debt through further lotteries. [Commodity Lotteries and the 'Silberglückshäuser']: The author examines state-organized commodity lotteries (Glückshäfen) used to stimulate the market for domestic silver and porcelain. These games were intended to keep precious metals in the country and support state factories. The section discusses the conflict between these commodity games and the 'Zahlenlotto' monopoly granted to Conte di Cataldi, the eventual shift to private leasing of these games, and the modern regulatory framework established by the 1813 Lotto Patent for charitable and communal lotteries. [Types of Lottery Bets and Mathematical Probabilities]: This section defines the various types of bets available in the lottery, such as simple extractions, determined extractions, amben, ternen, quaternen, and quinen. It provides a mathematical breakdown of the probability of winning versus losing for each type based on combinatorial analysis of 90 numbers. The author highlights that the actual payouts are significantly lower than the theoretical mathematical odds, ensuring a profit for the state at the expense of the player. [State Profit and the 'Portata di Risico']: Explains how the state secures its profit through the difference between theoretical odds and actual payouts. It introduces the 'Portata di Risico' (risk limit), a mechanism allowing the state to reject or limit bets to protect itself against large losses, effectively shifting all risk to the player while maintaining a monopoly on the potential reward. [Historical Origins: From Genoa to the Modern Lotto]: Traces the historical development of the number lottery from its origins in Genoa (Benedetto Gentile) and Rome. It describes how betting on political or religious appointments (like the election of councilors or Popes) evolved into a numerical system. The section notes the rapid spread across Italy and the eventual state takeover of these games for fiscal benefit, despite religious bans. [The History of the Number Lottery in Austria: The First Lease Period (1753–1763)]: Detailed history of the introduction of the number lottery in Austria under Maria Theresa in 1751. The primary motivations were mercantilist (preventing capital flight to foreign lotteries) and fiscal (funding wars). It describes the first leasing period under Count Ottavio di Cataldi and the financial involvement of the Vienna City Bank (Wiener Stadtbank) to provide credit and security. [The Second Lease Period and Reform Proposals (1763–1770)]: Covers the second leasing period and the internal debates regarding state administration versus private leasing. Count Zinzendorf proposed moving toward state control or a joint-stock model to capture more profit. The section details the secret partnership between Cataldi, Brentano Cinaroli, and the Empress herself, as well as the administrative restructuring of the Austrian finance authorities. [The Third Lease Period and Expansion (1770–1778)]: Describes the third lease period under Andrea Baratta and the introduction of the 'Great Lottery' by Abraham Wetzlar. It details the expansion of the lottery into Tyrol, Hungary, and Poland, and the state's efforts to suppress competition. Notable is the conflict with the Prince-Bishops of Trent and Brixen over lottery rights, which the Empress resolved by asserting sovereign authority. [The Fourth Lease Period and Transition to State Management (1778–1787)]: Covers the final leasing period before the lottery was taken into direct state management by Joseph II. It discusses the inclusion of Galicia and the formalization of the 'Portata di Risico'. The section concludes with a summary of the financial results across all four leasing periods, showing a total state profit of over 15 million guilders. [State Administration and Early Abolition Attempts]: Joseph II ended the leasing system in favor of state administration to eliminate private middleman profits and corruption. However, the state found itself dependent on the revenue. This section details the first serious attempts to abolish the lottery in 1792 under Emperor Franz, which failed because provincial estates (Stände) refused to accept alternative taxes to cover the fiscal deficit. [The Lottery Patent of 1813 and Administrative Reform]: The Lottery Patent of 1813 established the modern legal and administrative foundation for the Austrian state lottery. It aimed to curb widespread fraud by collectors (Collectanten) by introducing strictly controlled official receipts. Despite these reforms, the system remained vulnerable to manipulation, and proposed technological improvements (juxtirter Register) in the 1840s were rejected due to cost. [Reform Proposals of the 1840s: Wildschgo's Social Lottery]: In the 1840s, Hofrat v. Wildschgo proposed a radical reform to transform the lottery into a socially beneficial institution. His 'Rayonsspiele' and 'Rentenlotterie' aimed to fund 'Montes di Pieta' (pawn shops for the poor) and provide life annuities, effectively turning gambling into a form of social insurance. These plans were interrupted by the Revolution of 1848 and ultimately shelved for fiscal reasons. [Modern Development and Fiscal Statistics (1819–1895)]: Analyzes the lottery's development from the mid-19th century to 1895, including the impact of the 1867 Compromise with Hungary. It provides extensive statistical tables on revenue, expenditures, and profits by province. A key finding is the disproportionate role of Lower Austria (Vienna) in lottery revenue and the observation that lottery participation increases during economic downturns. [The Social and Economic Impact of the Lottery]: The author concludes that the lottery is an immoral tax on poverty and superstition that damages the national economy by discouraging labor and savings. Statistical evidence shows an inverse relationship between lottery stakes and savings bank deposits. The section discusses the necessity of a phased abolition to mitigate fiscal shock while warning that the underlying gambling urge must be channeled into more productive outlets. [The History and Regulation of the Number Lotto in Italy]: This segment provides a detailed historical and statistical overview of the 'Zahlenlotto' (number lotto) in Italy, tracing its origins to cities like Genoa and its evolution through various Italian states including Savoy, Venice, Milan, Tuscany, the Papal States, and Naples. It discusses the recurring conflict between the state's moral stance against gambling and its fiscal reliance on lottery revenue. The text includes detailed financial tables from 1884 to 1897, showing stakes, winnings, and administrative costs, and notes the extreme popularity of the game in Naples compared to the rest of the kingdom. [Analysis of Italian Lotto Reform and Player Demographics]: An analysis of the 1894 Italian lottery reform intended to curb fraud and the subsequent decline in revenue attributed to deeper economic causes. It breaks down the popularity of different bet types (Ambo, Terno, Estratto) and provides a demographic profile of players based on stake sizes, showing that the poorest classes contribute significantly through the smallest bets. [The Origins of Property Lotteries (Güterausspielungen) in Austria]: This section explores the historical roots of 'Güterausspielungen' (property lotteries) in Austria, linking them to the collapse of the Austrian monetary system and the 'Bancozettel' (paper money) era. It details the fiscal crises under Maria Theresia and Josef II, leading to the state bankruptcy of 1811. The resulting economic instability turned property ownership into a form of speculation, prompting the government to allow distressed landowners to raffle off their estates to pay debts, despite official prohibitions on gambling. [The Mechanics and Abuses of Austrian Property Lotteries]: A critical examination of how property lotteries operated in practice in Austria between 1813 and 1850. The author describes how the aristocracy and later the middle class used these lotteries to liquidate assets at inflated judicial valuations. It highlights the role of major banking houses in 'guaranteeing' these lotteries and exploiting both the public and the landowners. The text details the lack of transparency in the 'Directiven' (internal regulations) and the systematic overvaluation of properties to cover taxes and administrative costs. [State Charity Lotteries as a Successor to Property Lotteries]: Following the ban on private property lotteries in 1853, the Austrian state introduced official 'Staatswohlthätigkeitslotterien' (State Charity Lotteries). This segment explains how these lotteries were designed to satisfy the public's gambling urge while directing profits toward public welfare (orphanages, hospitals, etc.) rather than private banking houses. It includes a table of 11 such lotteries (No. 40-51) showing stakes, winnings, and net proceeds. [The Theory and Technique of Lottery Loans (Lotterieanlehen)]: This section defines the technical nature of 'Lotterieanlehen' (lottery or premium loans), where interest is paid out in the form of prizes determined by drawings. It explains the distinction between interest-bearing and non-interest-bearing lottery loans and how the state uses the hope of large winnings to borrow capital at lower effective interest rates. The author argues that these loans are essentially a form of gambling where the majority of participants subsidize the large winnings of a few. [Historical Development of State Lottery Loans in Europe and Austria]: A historical survey of state lottery loans in England, France, and particularly Austria. In Austria, these loans became a primary tool for managing state debt during and after the Napoleonic Wars (1795–1864). The text details specific loan emissions (1820, 1821, 1834, 1839, 1854, 1860, 1864), their terms, and the involvement of banking consortia like Rothschild. It concludes with the legal status of these loans regarding conversion and the taxation of winnings as of 1898. [Taxation and Regulation of Gambling and Lotteries]: This section examines the taxation of gambling stakes, winnings, and intermediaries. It discusses the theoretical justifications for such taxes, including the 'tax on hope' and the moral-political argument that the state should use taxation to limit excessive gambling. The text features a debate between thinkers like Robert Meyer and Leon v. Bilinski regarding progressive taxation of winnings and the ethical dilemma of the state profiting from activities it should technically restrict for public welfare. [Private Lottery Loans (Privatlotterieanlehen)]: A detailed historical analysis of private lottery loans in Austria, specifically the 'Cavaliers-Anlehen' granted to the nobility. It explores the conflict between the Supreme Judicial Office (which opposed them due to fraud risks and usury concerns) and the Hofkammer (which supported them as a means of credit mobilization). The segment details the mechanics of how bank houses like Rothschild and Sina securitized these loans into partial obligations and the eventual regulatory attempts to curb these practices. [The Lottery Ban Law and Financial Policy Evaluation]: This segment covers the 'Lossperrgesetz' (Lottery Ban Law) of 1889, which aimed to protect the Austrian population from foreign lottery exploitation and regulate the domestic market. It includes a financial-political critique of lottery loans by Adolf Wagner, arguing that they harm the national economy by diverting capital from productive work and encouraging a culture of easy wealth. The text also discusses the impact of these laws on market prices and the state's fiscal inflexibility caused by fixed repayment plans. [The Promesse and Installment Business (Promessen- und Losratengeschäft)]: A comprehensive look at the 'Promesse' (a contract for a share in potential lottery winnings) and installment-based lottery ticket sales. The author describes the evolution of these financial instruments from illegal 'shadow' markets to regulated businesses. It highlights the economic dangers for the lower classes, the extremely low probability of winning, and the legislative efforts (Laws of 1862 and 1878) to control these practices. Thinkers like v. Hock and Adolf Wagner provide opposing views on the utility versus the harm of the Promesse business. [Modern Class Lotteries: Technique and European Context]: This section explains the technical structure of 'Class Lotteries' (Classenlotterien), where winnings are distributed over several stages or 'classes'. It focuses heavily on the Prussian Class Lottery, detailing its history, the distribution of tickets across provinces, and the fiscal results. The author critiques the 'protection' measures intended to keep the poor from playing, providing statistics that show a significant percentage of players are actually from less wealthy backgrounds. [Comparative Analysis of German and European Class Lotteries]: A comparative study of class lotteries across Germany (Saxony, Hamburg, etc.) and other European nations like Holland, Denmark, Spain, and Serbia. It discusses the proposal for a 'Reichslotterie' (Imperial Lottery) to end the competition between German federal states. The segment provides detailed fiscal data, participation rates per capita, and the historical evolution of these lotteries from charitable origins to state fiscal tools. The Spanish 'Loteria Nacional' and the Serbian state lottery are analyzed for their specific socio-economic impacts. [The Case for and against Class Lotteries in Austria and Hungary]: The author evaluates the potential introduction of class lotteries in Austria as a replacement for the 'Zahlenlotto'. Using the Hungarian transition as a case study, the text argues that class lotteries are not a moral improvement over the Lotto, as they create a psychological pressure to continue playing ('Zwang zum Weitersetzen') and often exploit the poor through ticket fragmentation. The segment concludes with a strong critique of the state's role in gambling, arguing that it contradicts the state's ethical mission to encourage labor and capital formation. [Economic Theory of Gambling and the 'Tax on Hope']: A deep theoretical exploration of gambling within the framework of national economy. The author connects gambling to the concept of 'Conjunctur' (market fluctuations) and speculation, arguing that gambling is an 'imitatio naturae'—an imitation of the random distribution of luck in nature and modern capitalism. Drawing on Karl Menger's theory of goods and needs, the author defines the 'need for hope' as a 'need of a higher order'. The text argues that the state should transform the gambling impulse into a productive force by creating 'interest lotteries' (Zinsenlotterien) that encourage saving. [Historical Calculations and the Graz Silver Glückshafen]: This segment provides historical financial breakdowns of silver lotteries, specifically detailing the Graz Silver Glückshafen of 1764. It includes tables of prize distributions and administrative reports on the manipulation and weighing of silver goods to ensure profitability and transparency. [The Organization of the Austrian Number Lotto]: A detailed technical explanation of the Austrian 'Zahlenlotto' (Number Lotto), covering the 90-number system and the various betting types: Terno, Ambo, Nominat, and Extract. It includes official payout ratios, minimum stakes, and comprehensive tables showing winnings based on different investment amounts in Gulden and Kreuzer. [Statistical Tables: Hungarian Lotto Results and Austrian Tax Revenue]: A collection of statistical tables documenting the financial performance of the Number Lotto in Hungary (1867–1897) and the revenue generated by the 10% (later 15%) tax on winnings across various Austrian crown lands, including Lower Austria, Bohemia, and Galicia. [Comprehensive Financial Overview of the Lotto Gefäll (1787–1818)]: Extensive multi-page tables detailing the income, expenditures, and surpluses of the Lotto administration from 1787 to 1818. The data tracks the impact of the Napoleonic era, showing values in both paper money and 'Conventions-Münze' (standard coinage), including costs for collectors, postage, and staff salaries. [Regional Lotto Surpluses and Participation Statistics (1819–1895)]: Statistical annexes providing a breakdown of lotto surpluses and the number of individual stakes (Spieleinlagen) by province from 1819 to 1895. It highlights regional differences in gambling activity across the Austrian Empire, from the industrial centers of Bohemia to the rural Bukowina. [Comparative Analysis of Saving vs. Gambling in Austria]: This segment presents a unique comparative table (Beilage 12) contrasting the growth of savings banks (Sparcassen) with lotto participation from 1865 to 1892. It includes per capita calculations to measure the 'thriftiness' versus 'gambling spirit' of the Austrian population. [The Legal and Fiscal Framework of Gambling Taxation]: A comprehensive legal history of gambling taxes in Austria, starting from the Stamp Patent of 1840 through the reforms of 1862, 1868, and 1890. It discusses the taxation of lotteries, betting (Totalisateur), and the specific consumption tax on playing cards, explaining the transition from document-based fees to direct percentage-based winnings taxes. [Foreign and Private Lottery Loans on the Vienna Stock Exchange]: Detailed lists of foreign lottery loans (e.g., Russian, Serbian, Finnish) and private lottery-backed bonds (e.g., Credit-Lose, Danube Regulation) traded in Austria. The tables provide data on nominal values, remaining draws, and the discrepancy between the 'true value' and 'market value' (Agio) of these speculative instruments. [Gesetz vom 7. November 1862, betreffend das Promessengeschäft mit Anlehenslosen]: The text of the Austrian law from 1862 regulating the sale of 'Promessen' (promises of potential winnings) on lottery bonds. It defines the conditions for legal sale, including residency requirements for sellers, the necessity of written certificates (Promessenscheine), and penalties for unauthorized gambling or tax evasion. [Gesetz vom 30. Juni 1878, betreffend die Veräußerung von Staats- und anderen Losen]: The Austrian law of 1878 governing the sale of state and other lottery bonds, specifically focusing on installment plans (Ratenzahlung). It restricts such sales to registered firms, mandates strict record-keeping (registers), and grants financial authorities the right to inspect these transactions to prevent illegal gambling practices. [Gesetz vom 28. März 1889, betreffend Schuldverschreibungen mit Prämien]: The law of 1889 regarding premium bonds and the advertising of prohibited lotteries. It stipulates that premium bonds may only be issued by the state for state purposes and regulates the validity of contracts involving foreign or older bonds, requiring specific stamping (Abstempelung) for legal recognition. [Gesetz vom 27. April 1896, betreffend Ratengeschäfte]: The general law of 1896 regulating installment transactions (Ratengeschäfte). It provides consumer protections, such as the right to withdraw from contracts, limits on penalties for late payments, and procedural rules for legal disputes arising from installment sales of goods and securities. [Beilage 17: Geschäftsresultate der preußischen Classenlotterie (1883-1897)]: A statistical table detailing the financial results of the Prussian Class Lottery from the fiscal years 1883/84 to 1896/97. It tracks income from ticket sales, state deductions, administrative costs (personal and material), and the final surplus transferred to the state budget. [Beilage 18: Die Gewinsthoffnung bei der preußischen Classenlotterie (Mathematische Analyse)]: A detailed mathematical analysis by Dr. Victorin Sersawy regarding the probability of winning and the expected value in the Prussian Class Lottery. Sersawy breaks down the lottery's structure (190,000 regular tickets and 35,620 free tickets) across four classes (drawings), calculating the financial advantage of the state versus the private player's risk. [Mathematical Expectations and Administrative Constraints in Class Lotteries]: Concludes the mathematical analysis of class lotteries by discussing average figures and the necessity of administrative costs and taxes. It notes that the ratio between player payments and winning expectations remains within specific bounds and justifies the neglect of intercalary interest due to short terms. [Practical Proposals for a Savings Lottery (Beilage 19)]: A detailed examination of various historical and contemporary proposals to replace traditional gambling (like the Numbers Lotto) with savings-linked lotteries. Sieghart analyzes the psychological link between gambling and thrift, critiquing plans by Sourdeau, Elbogen, Schierenberg, and Codacci-Pisanelli. He provides an extensive critique of August Scherl's 'Scherlsche Sparsystem', noting its administrative difficulties and its failure to provide sufficient incentive for players to transition from gambling to saving in the Austrian context. [A Proposed State Savings Lottery for Austria]: Sieghart outlines his own proposal for a state-run savings lottery integrated with the Post Office Savings Bank (Postsparcasse). He suggests a system where capital is preserved, a base interest rate is guaranteed, and a portion of the interest is used for monthly prize draws. The goal is to provide a gradual transition for the population away from the Numbers Lotto toward productive saving. [Bibliography: List of Used Acts and Printed Works]: A comprehensive bibliography of archival sources from the Imperial Ministry of Finance and the Ministry of the Interior, followed by an extensive list of printed literature used in the work. The list includes major economic thinkers (Becher, Hornick, Roscher, Wagner, Menger), legal texts, and historical accounts of gambling and finance across Europe.
The title page and preface of Rudolf Sieghart's 1899 work on public gambling. The author outlines his intent to analyze the history and current state of gambling in Austria to provide a basis for future reform, specifically addressing the 'Lotto question'. He emphasizes the historical roots of gambling in the Austrian character and acknowledges the support of various officials, including Finance Minister Dr. Kaizl.
Read full textA detailed table of contents for the book, listing nine chapters and nineteen appendices. Topics include the development of gambling in Europe, mercantilism in Austria, various types of lotteries (Zahlenlotto, Classenlotterien, Güterausspielungen), lottery loans, and the theory of gambling.
Read full textThe introduction defines gambling from both psychological and legal perspectives. Sieghart argues that gambling arises from the human desire to improve one's economic situation through chance rather than labor. Legally, he defines the 'Glücksvertrag' (aleatory contract) where the outcome depends on uncertainty. He distinguishes between games of pure chance, skill, and mixed games, while providing a technical definition of lotteries, including the roles of the entrepreneur and the player.
Read full textThis section provides a systematic classification of lotteries based on five criteria: the nature of the entrepreneur (state vs. private), the circle of players (public vs. private), the type of prizes (money vs. goods), the type of markers (numbered vs. non-numbered), and the method of drawing (regular vs. irregular). It specifically defines 'Zahlenlotto' (Genoese style) and 'Classenlotterie' (Dutch style), and describes 'Glückshäfen' (fortune pots).
Read full textThis section explores the historical evolution of lotteries, distinguishing between ancient practices of drawing lots for property division and modern gambling. It contrasts Roman 'jactus missilium' (gift-giving) with modern taxation-based games, noting that Roman law generally prohibited gambling for money. The narrative details how Canon law's more lenient view in the 15th century allowed gambling to flourish in Italy, leading to the first structured commodity lotteries described by writers like Scaccia and Molina.
Read full textThe author traces the transition from commodity lotteries to state-run money lotteries as a tool for public finance. It describes the introduction of the 'blanque' in France under Francis I and the later influence of Laurentius Tonty, whose annuity schemes (tontines) and lottery plans were initially unsuccessful but paved the way for the Loterie Royale. The section concludes with the lottery's abolition during the French Revolution as a 'despotic invention' and its subsequent restoration due to fiscal necessity.
Read full textA detailed look at the lottery systems in Holland and England. Holland is credited with developing the 'class lottery' (Classenlotterie), evolving through periods of municipal, leased, and state-run systems. In England, Queen Elizabeth I actively encouraged the first major lottery in 1569 to raise funds. The text describes the eventual 1808 parliamentary investigation into the social ills of lotteries, leading to their 1826 abolition in England, where gambling subsequently shifted toward betting.
Read full textThis section examines the emergence of lotteries in Germany, particularly the 'Glückstöpfe' (fortune pots), which were often used by merchants to offload surplus or low-quality goods. It cites the 1581 polemic by preacher Sigismund Suevus, who condemned these games as devilish deceptions. The narrative follows the evolution into more structured class lotteries in cities like Leipzig, Nuremberg, and Berlin, eventually becoming state-managed institutions to fund charities.
Read full textThe author details the history of gambling in Austria, noting the persistent but largely ineffective legal prohibitions against hazard games found in the Codex Austriacus. It describes the early 'Glückshäfen' (fortune harbors) and the first Austrian state lottery in 1707 (conducted in Hamburg). The section argues that the state's eventual move to monopolize lotteries was driven by fiscal interest and the mercantilist desire to prevent capital flight to foreign lotteries.
Read full textThis substantial section analyzes the post-Thirty Years' War economic exhaustion of Austria and the subsequent adoption of mercantilist policies. It profiles key thinkers like Becher, Hornick, and Schröder, who sought to emulate Colbert's French model by promoting domestic industry, restricting imports, and preventing the outflow of gold. The author discusses the establishment of state-supported factories (e.g., Linz wool, Neuhaus mirrors) and the struggle against the restrictive guild (Zunft) system to create a unified national economy.
Read full textThis section details the rise and fall of the Oriental Company (Orientalische Compagnie), founded in 1719 to monopolize trade with the Ottoman Empire. Lacking sufficient capital, the company turned to the first Austrian class lotteries (the 'hundredfold lottery') to fund its industrial ventures. The narrative describes the complex financial engineering, the eventual collapse of the company and its lotteries due to corruption and mismanagement, and the state's subsequent attempts to liquidate the debt through further lotteries.
Read full textThe author examines state-organized commodity lotteries (Glückshäfen) used to stimulate the market for domestic silver and porcelain. These games were intended to keep precious metals in the country and support state factories. The section discusses the conflict between these commodity games and the 'Zahlenlotto' monopoly granted to Conte di Cataldi, the eventual shift to private leasing of these games, and the modern regulatory framework established by the 1813 Lotto Patent for charitable and communal lotteries.
Read full textThis section defines the various types of bets available in the lottery, such as simple extractions, determined extractions, amben, ternen, quaternen, and quinen. It provides a mathematical breakdown of the probability of winning versus losing for each type based on combinatorial analysis of 90 numbers. The author highlights that the actual payouts are significantly lower than the theoretical mathematical odds, ensuring a profit for the state at the expense of the player.
Read full textExplains how the state secures its profit through the difference between theoretical odds and actual payouts. It introduces the 'Portata di Risico' (risk limit), a mechanism allowing the state to reject or limit bets to protect itself against large losses, effectively shifting all risk to the player while maintaining a monopoly on the potential reward.
Read full textTraces the historical development of the number lottery from its origins in Genoa (Benedetto Gentile) and Rome. It describes how betting on political or religious appointments (like the election of councilors or Popes) evolved into a numerical system. The section notes the rapid spread across Italy and the eventual state takeover of these games for fiscal benefit, despite religious bans.
Read full textDetailed history of the introduction of the number lottery in Austria under Maria Theresa in 1751. The primary motivations were mercantilist (preventing capital flight to foreign lotteries) and fiscal (funding wars). It describes the first leasing period under Count Ottavio di Cataldi and the financial involvement of the Vienna City Bank (Wiener Stadtbank) to provide credit and security.
Read full textCovers the second leasing period and the internal debates regarding state administration versus private leasing. Count Zinzendorf proposed moving toward state control or a joint-stock model to capture more profit. The section details the secret partnership between Cataldi, Brentano Cinaroli, and the Empress herself, as well as the administrative restructuring of the Austrian finance authorities.
Read full textDescribes the third lease period under Andrea Baratta and the introduction of the 'Great Lottery' by Abraham Wetzlar. It details the expansion of the lottery into Tyrol, Hungary, and Poland, and the state's efforts to suppress competition. Notable is the conflict with the Prince-Bishops of Trent and Brixen over lottery rights, which the Empress resolved by asserting sovereign authority.
Read full textCovers the final leasing period before the lottery was taken into direct state management by Joseph II. It discusses the inclusion of Galicia and the formalization of the 'Portata di Risico'. The section concludes with a summary of the financial results across all four leasing periods, showing a total state profit of over 15 million guilders.
Read full textJoseph II ended the leasing system in favor of state administration to eliminate private middleman profits and corruption. However, the state found itself dependent on the revenue. This section details the first serious attempts to abolish the lottery in 1792 under Emperor Franz, which failed because provincial estates (Stände) refused to accept alternative taxes to cover the fiscal deficit.
Read full textThe Lottery Patent of 1813 established the modern legal and administrative foundation for the Austrian state lottery. It aimed to curb widespread fraud by collectors (Collectanten) by introducing strictly controlled official receipts. Despite these reforms, the system remained vulnerable to manipulation, and proposed technological improvements (juxtirter Register) in the 1840s were rejected due to cost.
Read full textIn the 1840s, Hofrat v. Wildschgo proposed a radical reform to transform the lottery into a socially beneficial institution. His 'Rayonsspiele' and 'Rentenlotterie' aimed to fund 'Montes di Pieta' (pawn shops for the poor) and provide life annuities, effectively turning gambling into a form of social insurance. These plans were interrupted by the Revolution of 1848 and ultimately shelved for fiscal reasons.
Read full textAnalyzes the lottery's development from the mid-19th century to 1895, including the impact of the 1867 Compromise with Hungary. It provides extensive statistical tables on revenue, expenditures, and profits by province. A key finding is the disproportionate role of Lower Austria (Vienna) in lottery revenue and the observation that lottery participation increases during economic downturns.
Read full textThe author concludes that the lottery is an immoral tax on poverty and superstition that damages the national economy by discouraging labor and savings. Statistical evidence shows an inverse relationship between lottery stakes and savings bank deposits. The section discusses the necessity of a phased abolition to mitigate fiscal shock while warning that the underlying gambling urge must be channeled into more productive outlets.
Read full textThis segment provides a detailed historical and statistical overview of the 'Zahlenlotto' (number lotto) in Italy, tracing its origins to cities like Genoa and its evolution through various Italian states including Savoy, Venice, Milan, Tuscany, the Papal States, and Naples. It discusses the recurring conflict between the state's moral stance against gambling and its fiscal reliance on lottery revenue. The text includes detailed financial tables from 1884 to 1897, showing stakes, winnings, and administrative costs, and notes the extreme popularity of the game in Naples compared to the rest of the kingdom.
Read full textAn analysis of the 1894 Italian lottery reform intended to curb fraud and the subsequent decline in revenue attributed to deeper economic causes. It breaks down the popularity of different bet types (Ambo, Terno, Estratto) and provides a demographic profile of players based on stake sizes, showing that the poorest classes contribute significantly through the smallest bets.
Read full textThis section explores the historical roots of 'Güterausspielungen' (property lotteries) in Austria, linking them to the collapse of the Austrian monetary system and the 'Bancozettel' (paper money) era. It details the fiscal crises under Maria Theresia and Josef II, leading to the state bankruptcy of 1811. The resulting economic instability turned property ownership into a form of speculation, prompting the government to allow distressed landowners to raffle off their estates to pay debts, despite official prohibitions on gambling.
Read full textA critical examination of how property lotteries operated in practice in Austria between 1813 and 1850. The author describes how the aristocracy and later the middle class used these lotteries to liquidate assets at inflated judicial valuations. It highlights the role of major banking houses in 'guaranteeing' these lotteries and exploiting both the public and the landowners. The text details the lack of transparency in the 'Directiven' (internal regulations) and the systematic overvaluation of properties to cover taxes and administrative costs.
Read full textFollowing the ban on private property lotteries in 1853, the Austrian state introduced official 'Staatswohlthätigkeitslotterien' (State Charity Lotteries). This segment explains how these lotteries were designed to satisfy the public's gambling urge while directing profits toward public welfare (orphanages, hospitals, etc.) rather than private banking houses. It includes a table of 11 such lotteries (No. 40-51) showing stakes, winnings, and net proceeds.
Read full textThis section defines the technical nature of 'Lotterieanlehen' (lottery or premium loans), where interest is paid out in the form of prizes determined by drawings. It explains the distinction between interest-bearing and non-interest-bearing lottery loans and how the state uses the hope of large winnings to borrow capital at lower effective interest rates. The author argues that these loans are essentially a form of gambling where the majority of participants subsidize the large winnings of a few.
Read full textA historical survey of state lottery loans in England, France, and particularly Austria. In Austria, these loans became a primary tool for managing state debt during and after the Napoleonic Wars (1795–1864). The text details specific loan emissions (1820, 1821, 1834, 1839, 1854, 1860, 1864), their terms, and the involvement of banking consortia like Rothschild. It concludes with the legal status of these loans regarding conversion and the taxation of winnings as of 1898.
Read full textThis section examines the taxation of gambling stakes, winnings, and intermediaries. It discusses the theoretical justifications for such taxes, including the 'tax on hope' and the moral-political argument that the state should use taxation to limit excessive gambling. The text features a debate between thinkers like Robert Meyer and Leon v. Bilinski regarding progressive taxation of winnings and the ethical dilemma of the state profiting from activities it should technically restrict for public welfare.
Read full textA detailed historical analysis of private lottery loans in Austria, specifically the 'Cavaliers-Anlehen' granted to the nobility. It explores the conflict between the Supreme Judicial Office (which opposed them due to fraud risks and usury concerns) and the Hofkammer (which supported them as a means of credit mobilization). The segment details the mechanics of how bank houses like Rothschild and Sina securitized these loans into partial obligations and the eventual regulatory attempts to curb these practices.
Read full textThis segment covers the 'Lossperrgesetz' (Lottery Ban Law) of 1889, which aimed to protect the Austrian population from foreign lottery exploitation and regulate the domestic market. It includes a financial-political critique of lottery loans by Adolf Wagner, arguing that they harm the national economy by diverting capital from productive work and encouraging a culture of easy wealth. The text also discusses the impact of these laws on market prices and the state's fiscal inflexibility caused by fixed repayment plans.
Read full textA comprehensive look at the 'Promesse' (a contract for a share in potential lottery winnings) and installment-based lottery ticket sales. The author describes the evolution of these financial instruments from illegal 'shadow' markets to regulated businesses. It highlights the economic dangers for the lower classes, the extremely low probability of winning, and the legislative efforts (Laws of 1862 and 1878) to control these practices. Thinkers like v. Hock and Adolf Wagner provide opposing views on the utility versus the harm of the Promesse business.
Read full textThis section explains the technical structure of 'Class Lotteries' (Classenlotterien), where winnings are distributed over several stages or 'classes'. It focuses heavily on the Prussian Class Lottery, detailing its history, the distribution of tickets across provinces, and the fiscal results. The author critiques the 'protection' measures intended to keep the poor from playing, providing statistics that show a significant percentage of players are actually from less wealthy backgrounds.
Read full textA comparative study of class lotteries across Germany (Saxony, Hamburg, etc.) and other European nations like Holland, Denmark, Spain, and Serbia. It discusses the proposal for a 'Reichslotterie' (Imperial Lottery) to end the competition between German federal states. The segment provides detailed fiscal data, participation rates per capita, and the historical evolution of these lotteries from charitable origins to state fiscal tools. The Spanish 'Loteria Nacional' and the Serbian state lottery are analyzed for their specific socio-economic impacts.
Read full textThe author evaluates the potential introduction of class lotteries in Austria as a replacement for the 'Zahlenlotto'. Using the Hungarian transition as a case study, the text argues that class lotteries are not a moral improvement over the Lotto, as they create a psychological pressure to continue playing ('Zwang zum Weitersetzen') and often exploit the poor through ticket fragmentation. The segment concludes with a strong critique of the state's role in gambling, arguing that it contradicts the state's ethical mission to encourage labor and capital formation.
Read full textA deep theoretical exploration of gambling within the framework of national economy. The author connects gambling to the concept of 'Conjunctur' (market fluctuations) and speculation, arguing that gambling is an 'imitatio naturae'—an imitation of the random distribution of luck in nature and modern capitalism. Drawing on Karl Menger's theory of goods and needs, the author defines the 'need for hope' as a 'need of a higher order'. The text argues that the state should transform the gambling impulse into a productive force by creating 'interest lotteries' (Zinsenlotterien) that encourage saving.
Read full textThis segment provides historical financial breakdowns of silver lotteries, specifically detailing the Graz Silver Glückshafen of 1764. It includes tables of prize distributions and administrative reports on the manipulation and weighing of silver goods to ensure profitability and transparency.
Read full textA detailed technical explanation of the Austrian 'Zahlenlotto' (Number Lotto), covering the 90-number system and the various betting types: Terno, Ambo, Nominat, and Extract. It includes official payout ratios, minimum stakes, and comprehensive tables showing winnings based on different investment amounts in Gulden and Kreuzer.
Read full textA collection of statistical tables documenting the financial performance of the Number Lotto in Hungary (1867–1897) and the revenue generated by the 10% (later 15%) tax on winnings across various Austrian crown lands, including Lower Austria, Bohemia, and Galicia.
Read full textExtensive multi-page tables detailing the income, expenditures, and surpluses of the Lotto administration from 1787 to 1818. The data tracks the impact of the Napoleonic era, showing values in both paper money and 'Conventions-Münze' (standard coinage), including costs for collectors, postage, and staff salaries.
Read full textStatistical annexes providing a breakdown of lotto surpluses and the number of individual stakes (Spieleinlagen) by province from 1819 to 1895. It highlights regional differences in gambling activity across the Austrian Empire, from the industrial centers of Bohemia to the rural Bukowina.
Read full textThis segment presents a unique comparative table (Beilage 12) contrasting the growth of savings banks (Sparcassen) with lotto participation from 1865 to 1892. It includes per capita calculations to measure the 'thriftiness' versus 'gambling spirit' of the Austrian population.
Read full textA comprehensive legal history of gambling taxes in Austria, starting from the Stamp Patent of 1840 through the reforms of 1862, 1868, and 1890. It discusses the taxation of lotteries, betting (Totalisateur), and the specific consumption tax on playing cards, explaining the transition from document-based fees to direct percentage-based winnings taxes.
Read full textDetailed lists of foreign lottery loans (e.g., Russian, Serbian, Finnish) and private lottery-backed bonds (e.g., Credit-Lose, Danube Regulation) traded in Austria. The tables provide data on nominal values, remaining draws, and the discrepancy between the 'true value' and 'market value' (Agio) of these speculative instruments.
Read full textThe text of the Austrian law from 1862 regulating the sale of 'Promessen' (promises of potential winnings) on lottery bonds. It defines the conditions for legal sale, including residency requirements for sellers, the necessity of written certificates (Promessenscheine), and penalties for unauthorized gambling or tax evasion.
Read full textThe Austrian law of 1878 governing the sale of state and other lottery bonds, specifically focusing on installment plans (Ratenzahlung). It restricts such sales to registered firms, mandates strict record-keeping (registers), and grants financial authorities the right to inspect these transactions to prevent illegal gambling practices.
Read full textThe law of 1889 regarding premium bonds and the advertising of prohibited lotteries. It stipulates that premium bonds may only be issued by the state for state purposes and regulates the validity of contracts involving foreign or older bonds, requiring specific stamping (Abstempelung) for legal recognition.
Read full textThe general law of 1896 regulating installment transactions (Ratengeschäfte). It provides consumer protections, such as the right to withdraw from contracts, limits on penalties for late payments, and procedural rules for legal disputes arising from installment sales of goods and securities.
Read full textA statistical table detailing the financial results of the Prussian Class Lottery from the fiscal years 1883/84 to 1896/97. It tracks income from ticket sales, state deductions, administrative costs (personal and material), and the final surplus transferred to the state budget.
Read full textA detailed mathematical analysis by Dr. Victorin Sersawy regarding the probability of winning and the expected value in the Prussian Class Lottery. Sersawy breaks down the lottery's structure (190,000 regular tickets and 35,620 free tickets) across four classes (drawings), calculating the financial advantage of the state versus the private player's risk.
Read full textConcludes the mathematical analysis of class lotteries by discussing average figures and the necessity of administrative costs and taxes. It notes that the ratio between player payments and winning expectations remains within specific bounds and justifies the neglect of intercalary interest due to short terms.
Read full textA detailed examination of various historical and contemporary proposals to replace traditional gambling (like the Numbers Lotto) with savings-linked lotteries. Sieghart analyzes the psychological link between gambling and thrift, critiquing plans by Sourdeau, Elbogen, Schierenberg, and Codacci-Pisanelli. He provides an extensive critique of August Scherl's 'Scherlsche Sparsystem', noting its administrative difficulties and its failure to provide sufficient incentive for players to transition from gambling to saving in the Austrian context.
Read full textSieghart outlines his own proposal for a state-run savings lottery integrated with the Post Office Savings Bank (Postsparcasse). He suggests a system where capital is preserved, a base interest rate is guaranteed, and a portion of the interest is used for monthly prize draws. The goal is to provide a gradual transition for the population away from the Numbers Lotto toward productive saving.
Read full textA comprehensive bibliography of archival sources from the Imperial Ministry of Finance and the Ministry of the Interior, followed by an extensive list of printed literature used in the work. The list includes major economic thinkers (Becher, Hornick, Roscher, Wagner, Menger), legal texts, and historical accounts of gambling and finance across Europe.
Read full text