New study: Around half of all German online bets made with black market operators
A new study by economist Gunther Schnabl from the University of Leipzig reveals alarming developments in the German online gambling market: despite the efforts of the federal states to steer players towards licensed offers, around half of German online gambling continues to take place in the illegal market.
The youth and player protection measures of legal providers, such as limits, player bans and offers of help, are therefore often ineffective.
The reason for this development is an enormous black market offering on the Internet, which can be accessed with just a few clicks and is advertised around the clock. At the same time, the legal German gambling market is subject to such restrictive limitations that it is often unattractive to players. This leads to tax losses amounting to several hundred million euros and jeopardizes player protection.
The clients of the study, the German Online Casino Association (DOCV) and the German Sports Betting Association (DSWV), are therefore calling for urgent measures:
- Acceleration of the licensing processes of the gaming authority GGL to prevent black market activities.
- Increasing the competitiveness of the legal market.
- Consistent enforcement of the advertising ban for illegal providers.
- Maintaining advertising opportunities for legal offers
- Improving cooperation between industry, GGL, politics and interest groups.
- Review of the provisions of the Interstate Gambling Treaty to achieve the objectives.
- Amendment to the taxation of online gambling offers in the Racing Betting and Lotteries Act.
The associations are committed to constant, evidence-based research into the illegal online gambling market in order to ensure a safe gambling experience.