20% vs. 4%: German Regulator Accused of Underestimating Illegal Gambling Market
Xenia Luch
18 July 2024
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The German Online Casino Association (Deutscher Online Casinoverband) has raised concerns about the assessment made by the country’s gambling regulator, Glücksspielbehörde der Länder (GGL), regarding the share of unlicensed operators in the German gambling market. Casino Nieuws reports that the association is urging a review of the current gambling legislation in light of this issue.
Last month, the GGL published a report estimating the turnover of illegal operators in Germany at around €600 million, suggesting that the offshore sector accounts for 4% of the total market.
However, the Deutscher Online Casinoverband disagrees with this assessment.
They argue that, based on a total turnover of €3 billion in the jurisdiction, the €600 million in bets placed with unlicensed companies actually represents 20% of the market, not 4%.
In essence, the GGL has underestimated the real volume of bets taken by illegal operators by five times.
In 2026, the German gambling regulator plans to conduct a comprehensive study of the gambling market, which is expected to lead to a review of federal gambling legislation in 2027. However, Deutscher Online Casinoverband insists on amending the regulatory framework sooner, arguing that delaying action will allow offshore operators to continue thriving without facing any consequences for another three years.
A study conducted in Germany last year revealed that nearly half of the country’s players rely on the services of unlicensed gambling companies.