German authorities have launched a significant operation against an alleged illegal online gambling network accused of facilitating bets totaling approximately €5.86 billion over the span of 30 months.
On Tuesday, the Frankfurt public prosecutor’s office, assisted by the Frankfurt tax investigation unit, the State Office for the Combat of Financial Crime in North Rhine-Westphalia, and the Frankfurt police, executed coordinated searches at 11 locations. More than 100 officers participated in the extensive operation, resulting in the seizure of several high-value vehicles, the freezing of numerous bank accounts, and the imposition of an asset restraint order valued at around €82 million. An arrest warrant was also executed.
Prosecutors allege that five individuals ran internet-based gambling services without the necessary German licenses since at least July 2021. They report that the total amount of bets placed on these illegal platforms exceeded €5.8 billion between mid-2021 and the end of 2023.
In addition to concerns over illegal gambling activities, investigators are looking into significant tax evasion, estimating a projected tax shortfall of about €77.6 million for 2024.
The German Sports Betting Association (DSWV), which represents licensed sports-betting operators, welcomed the law enforcement action. Mathias Dahms, president of the DSWV, stated, "This successful investigation clearly demonstrates the scale that the illegal gambling market has now reached." He emphasized the dangers posed by unlicensed operators regarding player protection and the integrity of the legal market, mentioning the lack of controls such as deposit limits and identity verification.
Dahms called for continued enforcement efforts and stricter regulations to protect consumers, urging, "Anyone who wants to strengthen player protection must therefore consistently crack down on illegal services and strengthen legal ones." He suggested that the findings from this operation should lead to a reassessment of the estimated size of the black market for gambling in Germany.
The German Online Casino Association (DOCV), which represents licensed online casino operators, also expressed support for the operation. However, it pointed out the regulatory gaps that have allowed organized crime to flourish. Kevin O’Neal, a DOCV board member, said the investigation brings the General Gaming Authority's (GGL) black market estimates into question. The GGL's activity report for 2025 estimated a 23% share of the market in 2024 at €547 million in gross gaming revenue, contrasting with Nielsen data that suggested a share of about 56%.
The DOCV has consistently highlighted the divergence between the regulator's channelization estimates and those from independent sources. They reiterated their call for a unified federal licensing system for online casino games and more robust enforcement against illegal operators.
In July, German regulators decided to remove the €1 staking limit on online slots, signaling an active reassessment of the regulatory framework in anticipation of the formal review of the Interstate Treaty on Gambling, scheduled to conclude by the end of this year. This review is expected to introduce a national licensing regime for online casino games.
