German Gambling Revenue Rises Amid Black Market Challenges

German Gambling Revenue Grows, Black Market Still a Concern, Says Regulator

The German gambling market is evolving rapidly, but challenges remain!

The German regulator’s latest report reveals significant growth in legal gambling, yet the black market persists.

Discover how the regulated market is thriving and what steps are being taken to combat illegal gambling.

Stay updated on Germany’s gambling landscape and understand its future trajectory with this comprehensive analysis.

German Gambling Revenue Grows, Black Market Represents 4%, Regulator Says

The Gemeinsamen Glücksspielbehörde der Länder (GGL), Germany’s national gambling regulator, has published its annual report, revealing that illegal gambling accounted for up to 4% of the country’s gross gambling revenue (GGR) in 2023. The regulated market, meanwhile, generated €13.7 billion in GGR, marking a 2% increase from the previous year.

The report highlights that online gambling contributed 8% (€400 million) to the total GGR, while sports betting accounted for 13% (€1.8 billion). Despite the growth in the regulated market, the black market remains a significant concern, with estimated revenues between €400 million and €600 million.

Enforcement Measures Against Unlicensed Gambling

In 2023, the GGL conducted rigorous enforcement actions to curb unlicensed gambling activities. The regulator scrutinized 1,864 websites and issued 133 blocking orders, of which 87 targeted illegal gambling services and 46 addressed advertising by unlicensed operators. In total, the GGL dealt with 438 cases of suspected illegal gambling or advertising, a notable increase from 157 cases in the previous report. This uptick can be attributed to the GGL becoming fully operational in January 2023.

As a result of these enforcement measures, 63 black market operators ceased their services following hearings or prohibition orders. However, many non-compliant operators were based outside the European Union, complicating enforcement efforts. The GGL also issued two fines of €50,000 each related to prohibition orders against illegal gambling and advertising and was involved in 117 lawsuits.

Concerns from the Industry

The Deutscher Sportwettenverband (DSWV), Germany’s sports betting trade association, has consistently voiced concerns about the black market’s size. The association has called for a comprehensive review to address these issues and ensure a level playing field for licensed operators.

Licensing Delays and Solutions

The report also highlights challenges in the GGL’s licensing process, particularly delays caused by issues in testing games before their market launch. These delays were primarily due to suppliers failing to provide timely information or not providing it at all. To address this, the GGL hired additional resources for temporary support with game testing, resulting in substantial improvements in the first two quarters of 2024.

Leadership and Future Plans

On July 1, Reiner Moser assumed the role of chair of the GGL, taking over from Udo Götze. Moser, a Minister of the Bundesland of Baden-Württemberg, steps into this role as the GGL embarks on a comprehensive market evaluation slated for completion in 2026. This evaluation aims to analyze the regulated market’s role in society, with a particular focus on the impact of advertising.

The GGL, based in Halle, Saxony-Anhalt, was established under Germany’s new federal gambling legislation, approved in July 2021, and became fully functional in January 2023. The regulator’s efforts are geared towards creating a safe and regulated gambling environment while combating the persistent challenges posed by the black market.

Conclusion

Germany’s regulated gambling market has shown promising growth, but the persistence of the black market remains a significant hurdle. The GGL’s robust enforcement measures and the continuous improvement of its licensing processes are crucial steps toward mitigating illegal gambling activities. With the new leadership and a comprehensive market evaluation on the horizon, Germany is poised to refine its gambling regulations further, ensuring a fair and secure environment for both operators and players. As these developments unfold, staying informed will be key to understanding the future landscape of gambling in Germany.