Illegal online gambling booms in Germany

Whether Poker or Black Jack: The market for online money games in Germany is growing rapidly. And this despite the fact that it is not even allowed in Germany. According to an industry analysis, providers are increasingly advertising it. The countries cannot bring themselves to a regulation.

Berlin (dpa) – According to a recent study, illegal gambling in Germany and previously unlicensed online money games are on the advance far more than the regulated market.

The growth of the entire German gaming market by eight percent in 2015 is “primarily attributable to the expansion of the non-regulated market”, as a sector analysis by the Handelsblatt Research Institute shows. The market volume of non-approved offers is growing by around 30 percent annually.

The uncontrolled gambling market, which mainly consists of online offers, is much smaller with a share of 22 percent, but has shown stronger growth rates for years, according to the study for the private provider Löwen-Entertainment and the state-owned company West-Lotto. The online market is growing rapidly, and more new offers and games are to be expected.

The 14 billion euro gambling market in Germany is divided into a state-regulated, a non-regulated (“grey”) and a “black” market.

In Germany, the federal states are largely responsible for regulating lotteries, sports betting and casino games. Most games of chance are still subject to a state monopoly. The market has only been opened up for private sports betting providers. Online gambling is prohibited, as the state treaty does not provide for German online casino licenses. Only a few exceptions with a license from Schleswig-Holstein are permitted.

In mid-March, the state premiers decided to reform the State Treaty on Gaming. According to this, the allocation of sports betting licenses will be newly regulated from 2018. According to the State Treaty on Gaming agreed in 2012, the federal states should actually award 20 concessions to sports betting providers for seven years.

However, this was not successful, which is why the federal states have now decided on a reform. So far, all providers have been operating on a “grey market”. They are not subject to German regulation, but may offer their services.

On the regulated market, providers operate with a German licence. These include state lotteries, permitted sports betting sites by state providers, casinos, cash machines in gaming halls and restaurants or horse betting.

According to the study, the regulated market was by far the largest segment in 2015 with gross gaming revenues of 10.4 billion euros. The illegal black market includes gambling providers without a licence. It is estimated at a volume of 1.5 billion euros.

On the non-regulated market with a volume of 2.3 billion Euro, providers operate with a concession from another EU state. These include private providers of sports betting and online games. According to the study, around four fifths of the volume in the non-regulated sector is accounted for by online offers for poker, casinos, sports and horse betting or online secondary lotteries. Online casinos dominated, “although the permission – differently than for private sport bets – according to German right at no time was given or is intended , is called it.

“Non-regulated offerers increased their advertising expenditures in the past years compared with regulated offerers particularly clearly and make it more difficult for players over their public representation the differentiation between certified and not certified offers in Germany , are called it further. Overall, the advertising expenditures of gambling providers have almost doubled in the past five years to 390 million euros.