A new German regulator, the Gemeinsamen Glucksspielbehorde der Lander has released a 2022 tax analysis that shows 95% of bets were placed with legal providers.
In response to the press release by Deutsche Sportwettenverband (DSWV), the regulator published the analysis. The lobbying organization used its own numbers to show that the market for regulated sports was significantly smaller in 2022 than the previous year. This was due to the popularity of unlicensed operators, which is itself a product overly punitive regulation.
This conclusion was not consistent with the regulator’s findings.
Ronald Benter, GGL CEO, stated that “according to our market analysis the channelling rate of well over 95%” means that the betting stakes are not placed with less than 5% but with permitted sports betting providers as per the tax data of Federal Ministry of Finance.
The GGL acknowledged that the DSWV had stated that the German sports betting market was smaller than it was in 2021, and fell 5% back to 2019. However, the GGL provided its own analysis.
The argument was that the number of sporting events dropped dramatically from the Spring 2020 onwards, and many competitions, such as the UEFA European Championship, were delayed until 2021. In 2021, sales increased 16% compared to a normal year.
GGL also argue that the downturn in 2022 was not intuitively due to the World Cup. The tournament took place in Qatar and a number of factors meant that it was not possible to generate the same enthusiasm as the German public. Many players took a critical stance on the tournament’s proceedings.
The growth of the illegal market
Benjamin Schwanke, a board member, stated that there is no crowding out of legal offers by illegal offerings. “The DSWV has mentioned illegal websites. We will pursue them under gambling law. If necessary, we will forward the case to tax offices and public prosecutors.
There are also stationary betting agencies, which do not have permission from the federal governments but are still in operation. These unauthorized betting organizations must be dealt with by the federal states.
Schwanke expressed his opinion that DSWV’s demand for looser restrictions and a rethinking of regulation is a result the strict gambling rules set forth by the 2021 State Treaty on Gambling. was the one that created Germany’s national gaming market.
He said that this could give the impression that providers are limited in their actions due to these rules. The numbers speak a different language. The regulation does not have any economic impact.”
GGL indicated that it was in discussions with stakeholders from the industry to determine if any adjustments should be made to the legal framework. Any changes that are required must be proved accordingly, it said.
“The GGL is gaining speed in the fight to illegal gambling, especially in the area sports betting and related advertising. Benter said that we will measure success on the basis the data collected by GGL.
The regulator encouraged licensed operators to cooperate earlier this week in order to improve the country’s gambling market.
