In its annual report for 2023, released by the German gambling regulator Gemeinsamen Glucksspielbehorde der Lander on July 1, GGL said that illegal gambling revenues accounted up to 4% in total of German gaming revenue.
The black market generated between EUR400m to EUR600m of revenue in the same period. Meanwhile, the legal market generated EUR13.7bn GGR in the same year, which represents a 2% annual increase.
The report stated that in 133 cases, regulators blocked the operations. The report said that 87 of these were related to websites offering illegal gambling, while 46 had to do with the advertisement for black market operators.
GGL investigated 438 suspected cases of illegal gambling and advertising in the past 12 months. Illegal gambling
GGL issued 63 prohibitions and hearings during the past 12 months that led to 63 black-market operators ceasing their advertising or services.
The regulator stated that “the providers who refuse to discontinue services in spite of prohibition orders tend to be based outside the EU”.
In 2023, the GGL will impose two fines each of EUR 50 000 to enforce prohibition orders on illegal gambling and advertisement.
The report stated that the regulator was involved in 117 lawsuits filed by online gambling companies across various verticals.
GGL 2021/2022 reported 157 cases of illegal gambling, including advertising it, and 68 prohibited gambling proceedings were initiated.
In 2023, the GGR of online gambling will be 8%, or EUR400m, while the turnover from sports betting is EUR1.8bn with a share of 13% of the total market.
In its report, GGL commented on the licensing processes and said that there were delays when testing the games prior to their release.
This was due to the fact that suppliers did not provide information on time, or even at all.
Resources were hired temporarily to support game testing. The regulator stated that this led to “a significant improvement in the first two-quarters of 2024”.
The 2021 Interstate Treaty on Gambling, Germany’s gambling regulation, created for the very first time a complete online gaming and betting market. In 2023 the Joint Gambling Authority, which is the country’s central regulator, will open its doors.
Many business stakeholders criticised Germany’s regulatory system, stating that it is unfriendly to commercial operators.
German Sports Betting Association DSWV has described the current regulatory framework as the “most restrictive” in the entire world.
