Urgent Reform Needed in Germany’s Gambling Landscape: DSWV Raises Alarm
The German Sports Betting Association (DSWV) has once again highlighted the pressing need for a reform of Germany’s gambling regulations, noting ongoing challenges with directing users towards licensed platforms.
In light of recent market data, the DSWV has identified significant structural issues within the regulated gambling sector. New statistics released by the Joint Gambling Authority of the Federal States (GGL) indicate that approximately 25% of gambling activity in Germany is conducted through unlicensed channels. The DSWV suggests this figure may actually underestimate the size of the illegal market.
The association particularly voiced concern over the staggering reality that for every licensed bookmaker, there are currently 11 unlicensed operators competing in the market. DSWV President Mathias Dahms remarked, “This trend serves as a crucial warning. Illegal platforms are operating with far fewer constraints, allowing them to offer a broader selection of bets, especially in the sought-after areas of live betting and diverse sports offerings. This variety is driving many users toward these unregulated sites.”
Scrutiny of Black Market Statistics
The GGL’s statistics indicate a notable increase in illegal German-language betting sites—from 281 in 2023 to 382, marking a 36% rise. By contrast, only 34 licensed websites are officially recognized on the GGL’s whitelist. Although this official data marks a step towards transparency, the DSWV expresses skepticism, citing independent studies like the Schnabl report, which imply that the black market could potentially account for over 50% of all gambling activities in the nation.
These figures, according to the DSWV, reveal critical weaknesses in the existing regulatory framework established by the 2021 Interstate Treaty on Gambling. Dahms stated, “The acknowledgement that at least a quarter of the market is illegal signals a significant and systemic issue, rather than a minor concern. To truly elevate player protection, we must ensure that legal operators can compete effectively. Neglecting this will only undermine the safety measures intended to protect users.”
The Case for Regulatory Overhaul
The DSWV argues that the data reinforces their call for a comprehensive overhaul of gambling regulations to enhance the appeal of licensed operators. Currently, these operators face stringent regulations, including mandatory identity verification, bet caps, and access restrictions to the national player blocking system.
Among current limitations is a €1 cap on online slot stakes, alongside monthly deposit ceilings of €1,000 across regulated platforms, all enforced by the Interstate Treaty. An interim evaluation of this Treaty was initiated in December 2023 to assess its effectiveness and explore potential reforms, which may be adopted by state governments later this year.
Dahms emphasizes that while the legal gambling market offers unprecedented safety through rigorous player protection measures, excessive regulation risks making it less appealing. “If the legal framework becomes cumbersome, users will undoubtedly turn to illicit alternatives. The key to combating the black market lies in creating an enticing and reliable legal offering that includes expanded betting options and sensible regulations.”
Ultimately, Dahms asserts, “An attractive legal landscape is the best defense against illegal gambling. This necessitates broader betting types, more live betting opportunities, and regulations that reflect the realities of consumer demand.”