Faced with the growing threat of the black market in gambling, Germany’s interior ministers are calling for immediate reform of the sector and an expansion of the powers of the national regulator, the GGL.
With the next review of the German gambling market due on 31 December 2026, Germany’s interior ministers have no intention of waiting that long. At a recent conference, they unanimously expressed the urgent need to reform the existing legal framework, which has been largely undermined by the fierce competition from illegal operators.
The black market continues unabated: despite the entry into force of GlüStV 2021 (the Interstate Gaming Treaty), a significant proportion of players continue to turn to offshore platforms, evading consumer protection rules and tax obligations. This situation is deemed untenable by the authorities, who are demanding immediate action.
IP blocking at the heart of the debate
Among the reforms mentioned, IP blocking is the cornerstone of the planned repressive strategy. This technique involves ordering Internet Service Providers (ISPs) to block access to illegal sites. Already used in other countries such as Belgium and France, it is an effective way of limiting the visibility and accessibility of offshore casinos.
‘IP blocking can finally give us the means to curb the proliferation of illegal operators’, argued one of the ministers, quoted anonymously by the German press.
But the ministers’ enthusiasm has come up against a major legal obstacle. In 2023, the German courts flatly refused a request from the GGL to block Lottoland. The Federal Administrative Court ruled that the 2021 treaty did not provide a sufficient legal basis for such a measure. This decision considerably limited the regulator’s power to act.
A restrained but combative GGL
For the Gemeinsame Glücksspielbehörde der Länder (GGL), the German federal agency responsible for gaming regulation, this legal setback is a major obstacle. For several months now, the GGL has been calling for its powers to be extended, particularly in terms of investigations and inter-state cooperation.
In the current draft reform package, the ministers finally want to act on these demands:
- The GGL would be able to obtain authorisation to block sites in whole or in part.
- It would also be empowered to request information from other European regulators to assess the compliance of international operators.
- The GGL could join an international alliance of regulatory authorities to facilitate the exchange of sensitive information.
These new prerogatives are considered essential to curb the erosion of the regulated market.
‘Limiting the powers of the GGL is tantamount to strengthening the power of the illegal players,’ sums up one German politician.
Advertising: a red line not to be crossed?
However, the discussions on IP blocking are raising concerns, particularly with regard to freedom of expression and proportionality. The ministers agree that this measure should not be applied to isolated cases of illegal advertising. The aim is clear: they want to avoid a single contentious advertising insert being used as a pretext for banning an entire site.
This caution underlines the complexity of the issue: how can fraudulent sites be effectively blocked without infringing fundamental rights or opening the door to abuse?
The government has therefore launched a consultation to gather the opinions of experts, associations and access providers on how to implement IP blocking, in order to avoid any undesired side-effects.
Unclear timetable
While there seems to be a strong political consensus on the need for reform, the timetable remains uncertain. No legislation has yet been tabled, and discussions on the final form of the bill are still ongoing.What is certain is that Germany can no longer afford to wait passively for the 2026 deadline. The black market continues to flourish, threatening not only tax revenues but also the safety of players.