Europe’s Battle Against iGaming Black Market: Focus on Germany and France

Confronting the iGaming Black Market in Europe: Germany and France’s Regulatory Challenge

As we journey towards ICE London 2024, a critical issue in the European iGaming industry comes to the forefront: the challenge of combating the black market, particularly in Germany and France. This new series will delve into the latest developments and regulatory efforts since 2023.

Germany’s Regulatory Struggle with iGaming

Germany’s iGaming sector has been under scrutiny, with a recent study revealing nearly half of all online gambling in the country occurring through unlicensed operators. This situation puts the German gambling regulator, GGL, under immense pressure to render regulated casinos more appealing in 2024.

The Pervasive Black Market in Germany

The licensed gambling operators in Germany face unprecedented competition from the black market. Post-conference studies indicate that the State Treaty on Gambling, effective since July 2021, fails to meet its primary goal of channeling online gambling to licensed sites. This misalignment has resulted in significant loss of potential tax revenue.

Urgent Call for Action by German Industry Associations

The German Online Casino Association (DOCV) and the German Sports Betting Association (DSWV) urgently call for measures to combat this issue. They advocate for a GGL review of the current regulatory framework and increased collaboration across political and industry spheres, including revising taxation and regulations.

Gambling Harm and Addiction Concerns in Germany

Since the launch of Germany’s legal online casino market in July 2021, concerns about gambling addiction have escalated. Studies show a high proportion of slot machine players in Germany are at risk of gambling harm, with online casino games posing the greatest risk.

France’s Ongoing Battle Against Illegal Gambling

In France, the absence of a regulated iGaming market has led to a surge in black market activities. Despite attempts to legalize online casinos in 2023, the market remains unregulated, prompting an increase in illegal gambling activities.

ANJ’s Estimation and Actions Against Illegal Gambling

The French gambling regulator, ANJ, estimates the illegal gambling market to be worth up to €1.5 billion annually. In response, the ANJ is intensifying efforts to block illegal websites, warn associated service providers, and raise public awareness about the dangers of illegal gambling.

Potential Legalization and Its Impact in France

As France contemplates legalizing its iGaming market, the industry closely watches how this move might affect the black market. The ANJ’s proactive stance and the potential legalization hold the key to reshaping France’s gambling landscape.

Evaluating Europe’s Approach to iGaming Regulation

As ICE London 2024 approaches, the focus on Germany and France’s efforts to address the iGaming black market highlights significant regulatory challenges and opportunities in Europe’s gambling industry. The effectiveness of these measures and their impact on the broader market will be critical topics of discussion and analysis in the upcoming event.