Germany’s gambling sector is under renewed scrutiny following the release of the national regulator’s annual report, which has reignited debate over the country’s persistent black market and the effectiveness of current regulations.
The German Sports Betting Association (DSWV) has warned that the market is grappling with a ‘structural problem,’ as new data reveals a significant and growing share of gambling activity taking place outside the legal framework.
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The Gemeinsame Glücksspielbehörde der Länder (GGL), Germany’s federal gambling regulator, reported that gross gambling revenue (GGR) from the licensed market rose by 5% in 2024, reaching €14.4 billion (£12.3 billion). Tax and levy revenues also increased to approximately €7 billion (£6 billion).
The GGL highlighted its efforts to combat illegal gambling, noting that it reviewed over 1,700 websites and initiated 231 prohibition proceedings in 2024, up from 133 the previous year.
The regulator claims that around 450 illegal gambling sites are now inaccessible in Germany due to prohibition orders, with an additional 657 blocked through geo-blocking measures under the Digital Services Act.
Despite these enforcement actions, the DSWV and other industry stakeholders have challenged the regulator’s assessment of the black market’s size.
The GGL estimates that illegal German-language gambling websites account for a market volume of €500–600 million (£429-515 million), representing about 3–4% of the total legal market and 25% of the legal market for high-risk online gambling, such as virtual slots and sports betting.
However, the DSWV and independent studies suggest the true scale is much larger, with some research indicating that nearly half of all online gambling in Germany occurs on unlicensed platforms.
In response to the ongoing challenges, the DSWV has proposed a five-point action plan to strengthen the legal market and curb illegal gambling.
Key recommendations include improving the competitiveness of legal operators, establishing a national gambling prosecutor’s office, tracking financial flows, including cryptocurrency transactions, holding advertising platforms accountable, and advocating for harmonized EU regulations to facilitate cross-border enforcement.
The regulator’s report and the DSWV’s warnings underscore the complexity of Germany’s gambling landscape.
As the debate continues, both sides agree that effective solutions will require a balance between robust player protection and a competitive, appealing legal market to successfully channel players away from the black market.
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