In Germany, the regulation of online sports betting is struggling to establish itself. A recent survey reveals that the vast majority of active sites targeting German players operate without an official licence.
Germany and the rise of unauthorised betting sites
Since the Interstate Gambling Treaty of 2021 came into force, Germany has had a strict legal framework for online gambling. But despite these regulatory efforts, a recent survey reveals that the majority of German-language sports betting sites still operate without a legal licence.
The national regulator, the Gemeinsame Glücksspielbehörde der Länder (GGL), examined 416 platforms operating in German. Of these, only 34 have a licence. In other words, for every legal betting site, there are eleven that are not legally authorised.
The dangers for players and the regulated market
Mathias Dahms, Chairman of the German Sports Betting Association (Deutscher Sportwettenverband, DSWV), warns of the risks involved. Legal sites undertake to comply with strict obligations: payment of taxes, protection of players and guaranteed winnings.
Unauthorised players, on the other hand, escape these rules. For consumers, this means no recourse in the event of a dispute, greater opportunities for fraud or manipulation, and very limited legal protection. Dahms points out that these risks are particularly heightened during major sporting events, such as the Champions League, when the temptation to use unauthorised suppliers increases.
New gambling products and regulatory loopholes
In addition to traditional betting, the GGL points to the emergence of new formats such as token-based social betting platforms or prediction markets (betting on political or real events). These products fall outside the current legal framework and do not comply with the provisions of the 2021 Treaty.
Surveillance is being stepped up. The regulator promises to step up checks on sites and take action against illegal operators. But it also admits the difficulty of enforcing the laws in a cross-border digital environment, where platforms can be located in other countries while targeting German players.
Germany now has a legal framework designed to protect players and regulate sports betting. However, 11 out of 12 unauthorised German-language sites are still in breach of the regulations. The risks for consumers are real, and the challenges for the authorities are numerous, particularly in terms of cross-border supervision and regulation of new forms of gambling. The challenge is clear: step up controls and raise awareness to restore confidence and security in this market.