German law enforcement executed a significant operation targeting an alleged illegal online gambling network that is believed to have handled wagers totaling around €5.86 billion over a span of 30 months.
On Tuesday, coordinated searches took place at 11 different locations, conducted by the Frankfurt public prosecutor’s office, the Frankfurt tax investigation unit, the State Office for the Combat of Financial Crime in North Rhine-Westphalia, and the Frankfurt police. More than 100 officers were involved in the operation, which resulted in the seizure of multiple high-value vehicles, the freezing of numerous bank accounts, and the imposition of an asset restraint order around €82 million. An arrest warrant was also executed during the raids.
Prosecutors allege that five individuals operated online gambling services without the necessary German licenses since at least July 2021. The total amount of bets placed on these unlicensed platforms is said to have exceeded €5.8 billion between mid-2021 and late 2023.
Alongside the illegal gambling activities, investigators suspect that extensive tax evasion has occurred, projecting a tax shortfall of approximately €77.6 million for the upcoming year.
The DSWV, which represents licensed sports-betting operators, has welcomed the enforcement action, viewing it as an essential response to the illegal market's expansion and its associated risks. Mathias Dahms, president of the DSWV, noted, "This successful investigation clearly demonstrates the scale that the illegal gambling market has now reached." He underscored the significant dangers posed by unlicensed operators, particularly in terms of player protection and the integrity of the regulated market, citing the lack of measures such as deposit limits and identity verification. He urged for continued rigorous enforcement alongside enhanced regulations to protect consumers and stated, "Anyone who wants to strengthen player protection must therefore consistently crack down on illegal services and strengthen legal ones."
The DSWV argued that the findings should prompt a comprehensive reassessment of the existing estimates regarding the size of Germany's black market.
The DOCV, another organization that represents licensed online casino operators in Germany, expressed support for the crackdown but pointed out that the raids highlighted regulatory weaknesses that have allowed organized crime to thrive. Kevin O’Neal, a board member of the DOCV, suggested that the scale of the investigation challenges the GGL’s larger estimates of the black market. He referenced the regulator's 2025 activity report, which suggested that the black market share for 2024 would be 23% (estimated gross gaming revenue of €547 million), contrasting this with Nielsen data indicating a share closer to 56%.
The DOCV has consistently criticized the discrepancies between the estimates provided by the regulator and those from independent reviewers. It has reiterated its call for a unified federal licensing system for online casino games and stronger enforcement against illegal operators. The body also highlighted an ongoing review of the Interstate Treaty on Gambling, expected to wrap up by the end of the year, which aims to introduce a national licensing model for online casino games. In July, German regulators decided to remove the €1 staking limit on online slots, indicating that they are actively reevaluating the regulatory framework in preparation for the treaty's formal review.
