German Sports Betting Association (DSWV) data for 2023 revealed a 5.4% decrease in stakes compared to the previous year. A recent survey commissioned by DSWV indicated that the black market makes up approximately 50% of German online gambling activity. These statistics highlight the importance of legal compliance in the gambling industry.
The drop in total staked to €7.7bn was attributed to the restrictions on marketing activities imposed by the State Treaty on Gambling in 2021. DSWV expressed concerns that such restrictions, including a ban on live betting, are driving players towards unlicensed operators offering more attractive options.
Economist Gunther Schnabl’s study emphasized that almost half of all German gambling occurs on the black market. As sports betting gains momentum with Germany hosting the UEFA European Championships this year, DSWV is urging the Joint Gaming Authority of the States (GGL) to reevaluate current regulatory policies to combat illegal gambling activities.
DSWV opposes calls for a complete gambling advertising ban, as it believes that advertising plays a crucial role in differentiating licensed operators from illicit ones. The group argues that advertising restrictions may inadvertently boost the black market by hindering legal providers’ ability to attract customers.
Despite efforts to increase channelization through gambling laws, a DSWV-commissioned survey revealed that only 50.7% of gambling activity in Germany was with licensed operators. This underscores the need for stronger enforcement of legal compliance to protect players and regulate the gambling industry effectively.
