German gambling market: illegal gambling sites still make millions
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9 Jul 2024 •
Reading time: 2 minutes The German Gaming Authority (GGL) estimates that despite regulation, the illegal gambling market still represents around 4% of total gambling turnover. This means that between €400 million and €600 million in player losses goes to illegal providers.
Legal gambling market is growing, but online is lagging behind
The legal gambling market in Germany is growing, with a total turnover of €13.7 billion in 2023. Online gambling is still a small player, with only €3 billion in turnover. Sports betting dominates the online market with €1.8 billion while slots and poker together generate only €400 million.
GGL takes tough action against illegal providers
The GGL checked 1,864 websites in 2023 and blocked 133. Of these 87 were websites that offered illegal gambling services and 46 websites that advertised illegal gambling providers. A total of 438 cases of suspected illegal gambling activities or advertising were handled.
Black market difficult to combat
Despite the efforts of the GGL, it remains difficult to completely eliminate the black market. Many illegal providers are located outside the EU, which makes it difficult to enforce them. In 2023, the GGL imposed two fines of €50,000 for violations of the advertising ban for illegal gambling sites.
Slow Legalization process
The GGL did also encounter problems during the legalization process in 2023. Testing of online gambling games was delayed because providers provided information too late or not at all. The GGL had to temporarily hire additional staff to clear this backlog.
Strict regulations scare legal providers
Many experts in the gambling industry criticize the strict German regulations. They believe that this makes the market not attractive enough for legal providers.
Size of black market remains mystery
Research suggests that the black market problem may be worse than the GGL indicates. A November 2023 study estimates that almost half of German gamblers still use illegal websites.
The German sports betting industry (DSWV) even calls the current regulations “the most restrictive in the world”.