German law enforcement agencies have launched a significant operation against an alleged illegal online gambling network suspected of handling bets amounting to around €5.86 billion over 30 months. The Frankfurt public prosecutor's office, in collaboration with the Frankfurt tax investigation unit, the State Office for the Combat of Financial Crime in North Rhine-Westphalia, and Frankfurt police, executed synchronized raids at 11 locations on Tuesday.
The operation involved over 100 officers, who seized a number of luxury vehicles, froze multiple bank accounts, and imposed an asset restraint order approximating €82 million. Additionally, an arrest warrant was carried out during the raids.
Prosecutors contend that five individuals operated internet-based gambling services without the necessary licenses in Germany, starting from at least July 2021. The volume of gambling on these platforms reportedly surpassed €5.8 billion from mid-2021 through the end of 2023. Investigators are also looking into extensive tax evasion activities, estimating a tax shortfall of about €77.6 million for 2024.
The DSWV, the association representing licensed sports-betting operators, welcomed the law enforcement actions as a much-needed response to the growing illegal market and its associated risks. “This successful investigation clearly demonstrates the scale that the illegal gambling market has now reached,” stated Mathias Dahms, the DSWV president. Dahms emphasized the significant risks posed by unlicensed operators to player protection and the integrity of the licensed gambling landscape, noting the lack of controls such as deposit limits and identity verification. He advocated for continued strict enforcement to protect consumers, asserting, “Anyone who wants to strengthen player protection must therefore consistently crack down on illegal services and strengthen legal ones.”
The DSWV indicated that the investigation's findings should prompt a reevaluation of the estimated size of the illegal gambling market in Germany.
The DOCV, which represents licensed online casino operators, similarly supported the prosecutorial actions but argued that the raids highlighted regulatory deficiencies allowing organized crime to thrive. Kevin O’Neal, a board member of the DOCV, remarked that the scale of the investigation casts doubt on the GGL’s broader black market assessments. He referenced the regulator's 2025 activity report, which estimated a 2024 market share of 23% (€547 million in gross gaming revenue), contrasting it with Nielsen data indicating a much higher share of approximately 56%.
The DOCV has consistently criticized the differences between regulatory channelization estimates and those from independent evaluations. The group reiterated its call for a unified federal licensing framework for online casino games and enhanced enforcement measures against illegal operators. Furthermore, the ongoing review of the Interstate Treaty on Gambling, expected to conclude by year's end, aims to implement a national licensing model for online casino games. Recently, regulators decided to lift the €1 staking limit on online slots, signaling a reassessment of the regulatory framework in anticipation of the treaty's formal review.
