German Gambling Body Warns of Underestimated Black Market Size

German Gambling Body: Unlicensed Market Bigger Than Regulator Claims

The German gambling market faces a critical challenge that could undermine its integrity!

The Deutscher Online Casinoverband (DOCV) warns that the unlicensed gambling market is far larger than the regulator’s estimates.

Learn why urgent regulatory review is needed and how this issue impacts the entire gambling sector.

Stay informed on the latest findings and calls for action from industry leaders in Germany.

German Gambling Body Warns of Underestimated Black Market Size

The Deutscher Online Casinoverband (DOCV), Germany’s online casino trade association, is raising alarms about the size of the unlicensed gambling market in Germany. According to the DOCV, the German federal gambling regulator GGL has significantly underestimated the extent of black-market gambling.

Discrepancies in Market Size Estimates

The GGL’s last report in June estimated that the illegal gambling market was worth €600 million, representing only 4% of the total German gambling market. However, the DOCV argues that this figure misrepresents the true scale of the unlicensed sector. They contend that the GGL’s comparison to the entire market across all channels distorts the reality.

Findings from the University of Leipzig Study

A study commissioned by the DOCV and Deutscher Sportwettenverband (DSWV) from the University of Leipzig found that 50.7% of players gambled in the regulated online sector, while 49.3% used unlicensed EU providers or offshore sites. These findings suggest a nearly equal split between regulated and unregulated gambling, highlighting a much larger black market presence than previously acknowledged.

Call for Urgent Regulatory Review

The DOCV is calling for a more urgent review of gambling regulation to address this significant issue. They believe that the GGL’s current plans for a comprehensive market evaluation, scheduled for completion in 2026, are insufficiently urgent. Given past delays in regulatory evaluations, the DOCV urges the GGL to accelerate its review process to better understand and tackle the black market’s impact.

Channelisation Rates and Upcoming Data

Next month, the DOCV plans to release figures on channelisation rates in the market. These will be based on data from Entain and audience data specialist Nielsen, providing further insights into the scale and dynamics of the unlicensed gambling sector in Germany. This data will help paint a clearer picture of player behaviors and the prevalence of illegal gambling.

Impact of Advertising and Market Analysis

The GGL has stated that its market evaluation will focus on the role of the regulated market in society, with particular emphasis on the impact of advertising. The DOCV agrees that understanding advertising’s role is crucial but insists that immediate action is necessary to curb the influence of unlicensed operators.

The DOCV’s Position

The DOCV’s president, Nicolas Béraud, has been vocal about the need for stricter enforcement and more accurate representation of the black market’s size. He emphasizes that unlicensed operators are exploiting regulatory gaps, which not only harms the legal market but also poses significant risks to consumers.

“The expansion of the black market is a direct threat to the integrity of our regulated gambling industry. Immediate and decisive action is needed to protect both players and legitimate operators,” Béraud stated.

Future Steps and Industry Impact

The growing concern about the unlicensed gambling market in Germany underscores the need for robust regulatory measures. The DOCV’s call for an accelerated review process and the release of detailed channelisation data next month are steps toward addressing this issue. However, the true challenge lies in effectively implementing these measures and ensuring sustained compliance.

Conclusion

The DOCV’s warning about the underestimated size of the black market in German gambling is a critical issue that demands immediate attention. As the industry awaits more detailed data and regulatory action, it is clear that a proactive and comprehensive approach is essential to safeguard the integrity of Germany’s gambling market. Stay tuned for further updates as the DOCV and GGL work towards addressing these pressing concerns.