The German sports betting industry’s largest trade association has called for gambling regulations to be changed as it loses market share in 2023 to illegal operators.
German Sports Betting Association DSWV said that its 2023 data showed a 5,4% drop in bets from the prior year. According to a survey that it recently conducted, the black market is responsible for about 50% of German internet gambling.
DSWV stated that the decline in the total bet to EUR7,7bn was due to the restrictions on marketing activities placed by the State Treaty on Gambling which entered into effect in 2021. Unlicensed operators are able to offer more appealing propositions due to restrictions, like a live betting ban.
DSWV fears that, as sports betting is set to boom ahead of Germany hosting the UEFA European Championships this year, restrictions placed on licensed operators could lead to more people migrating onto the black market. The DSWV is calling on the Joint Gaming Authority of the States to take action in order to realign the current regulatory policies. The group opposes any calls to ban gambling advertisements.
The migration of players from legal to illegal gambling is a major reason why the market has declined. Since the State Treaty on Gambling entered into force in 2020, the regulated betting providers were unable to compete with the numerous betting offers on black market because of a restricted betting program,” said the DSWV in a press release.
The association calls for attractive conditions to ensure that regulated providers remain competitive.
Advertisement restrictions: A boost to the black market
Live betting is prohibited by the State Gambling Treaty, as well as wagering on any other sport or horse race than those specified. Betting on non-sports or esports is not allowed. The state has the exclusive right to pool betting.
DSWV is of the opinion that a total ban on advertising, backed up by many people, will make it impossible for consumers to distinguish between legitimate and illegal operators. Some of the draconian regulations already in place include an online advertising blackout and a ban on TV ads at specific times. There are restrictions on the use of sports clips for advertising.
The group stated that advertising helps legal providers stand out against illegal offers. Players are only safe at GGL-approved companies. The DSWV is against a ban on advertising in the sports betting debate.
A DSWV survey commissioned late last year revealed “alarming” developments in the German market for online gambling. The study revealed that despite the gambling laws being designed to increase channelization, only 50.7% was played with licensed operators. Study showed that 28.9% were played with non-licensed EU providers, and 19.9% by unlicensed overseas providers.
