German Online Gambling: Urgent Reforms Needed as Study Shows High Black Market Usage
A recent study by the University of Leipzig has raised alarms about the state of online gambling in Germany, revealing that nearly half of all online gambling activity still occurs on unlicensed sites.
Commissioned by the German Online Casino Association (DOCV) and the German Sports Betting Association (DSWV), this comprehensive study, led by economist Gunther Schnabl, indicates that the State Treaty on Gambling, effective since July 2021, is falling short in its goal to channel online gaming exclusively to licensed platforms.
The findings have prompted the DOCV and DSWV to urge the German gambling regulator (GGL) to create a more competitive environment for regulated casinos to entice players away from black market sites. This call for reform aims to curb the loss of significant tax revenue and ensure a safer gambling space.
In light of these revelations, there is an immediate need for a reassessment of Germany’s current gambling regulations to address these challenges and protect players effectively.
Criteria for Identifying Illegal Sites: The study outlines specific criteria to classify a site as illegal: accessibility from a German IP address without a VPN, availability in German, and acceptance of a German address during registration.
Channelization Rate and Black Market Share: The channelization rate towards regulated online spaces stood at 50.7% as of March 2023, with 28.9% of traffic directed to unlicensed EU providers and 19.9% to offshore providers. This suggests that about three-quarters of online gambling revenue is generated by the black market.
Impact of Restrictive Regulations: The study points out that current restrictions, such as stake limits and limited bonuses, make unlicensed sites more appealing due to their flexibility and ease of access.
Problem Gambling in Germany: A separate study by the Bundestag’s Federal Drug Commissioner reveals that 2.3% of the population suffers from gambling harm, with slots being a significant contributor.
Proposed Action Plan: The DOCV and DSWV have put forward an action plan calling for a review of the regulatory environment by the GGL, improved taxation, more flexible regulation, and enhanced collaboration among industry stakeholders.
Addressing the Black Market Threat: At the Bundeskonferenz zum Glücksspielwesen, Wes Himes emphasized the need to establish a competitive regulated market as the most effective way to combat illegal gambling activities.
The University of Leipzig’s study highlights a critical issue in Germany’s online gambling sector – the persistence of a significant black market presence despite regulatory efforts. This situation underscores the urgent need for regulatory reform to make the licensed gambling environment more attractive and safer for players. The proposed action plan offers a roadmap towards achieving a more effective and competitive regulated market, ultimately protecting consumers and maximizing the industry’s potential in Germany.
SOFTSWISS Jackpot Aggregator Sees 2.6x Surge in Bets: 2023 Report
In a dynamic year for the iGaming industry, the SOFTSWISS Jackpot Aggregator has released its 2023 report, offering insights into significant trends and achievements.
Notably, the report reveals a staggering 2.6 times increase in bets participating in jackpots, shedding light on the growing appeal of these mechanics among operators and players alike.
A Year of Remarkable Growth
Throughout 2023, bets participating in jackpots experienced consistent quarterly growth, witnessing a remarkable 165% increase from January to December. By the end of the year, the total value of these bets had surged to an impressive 6.396 billion euros. Moreover, the number of jackpot campaigns witnessed a substantial growth of 3.8 times compared to the previous year, totaling 230 campaigns.
Expanding Reach and Impact
One of the standout achievements of 2023 was the expansion of the Jackpot Aggregator’s footprint. The number of brands utilizing its jackpot solution tripled within the year, culminating in over 70 active brands by year-end. This surge in adoption reflects a heightened level of market trust and interest in the product.
Introducing the Prime Jackpot Campaign
A significant milestone of 2023 was the introduction of the Prime Jackpot campaign, which debuted in Q4. This innovative feature garnered considerable attention and interest from players across various casinos. The Prime Jackpot campaign allows operators to participate in shared prize pools, ensuring that rewards are drawn from the collective pool rather than from a specific brand operator. This approach not only offers larger rewards to attract more players but also enhances player engagement and loyalty while optimizing operational costs for operators.
Insights from SOFTSWISS
Aliaksei Douhin, Head of SOFTSWISS Jackpot Aggregator, shared his insights into the year’s achievements. He emphasized the noticeable increase in clients and connected casino brands, as well as the growing volume and value of bets in jackpots. He expressed satisfaction in witnessing clients actively embracing the Jackpot Aggregator and recognizing the added value it brings to their brand operations. The solution empowers operators to provide players with enhanced gaming experiences and more enticing winnings. Client feedback is actively collected and analyzed to ensure clients have access to the most sought-after tools and mechanics.
Looking Ahead to 2024
In 2024, the SOFTSWISS Jackpot Aggregator is set to extend its reach to a wider spectrum of clients. This expansion will be guided by a customized approach, ensuring that each client can tailor the product’s capabilities to meet their specific requirements.
Meet SOFTSWISS at ICE London
The SOFTSWISS Jackpot Aggregator team will be present at ICE London from February 6th to 8th, 2024. They are ready to showcase their latest advancements and engage in discussions with existing and potential clients.
SOFTSWISS is a renowned international iGaming company that offers certified software solutions for managing gambling operations. With a dedicated team of over 2000 employees spread across Malta, Poland, and Georgia, SOFTSWISS holds multiple gaming licenses and provides comprehensive iGaming software solutions. Their diverse product portfolio includes the Online Casino Platform, the Game Aggregator featuring thousands of casino games, the Affilka affiliate platform, the Sportsbook software, and the Jackpot Aggregator. In 2013, SOFTSWISS made history by introducing the world’s first Bitcoin-optimized online casino solution.
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