Germany published study estimates the online gambling unregulated share at 22.97% and the pipeline level at 77.03%.
Although the illegal market remains large enough to shape the country’s upcoming review of casino rules, the country’s casino regulator has returned to the debate over the size of the country’s online black market. Almost four-fifths of German online gambling spend now goes through licensed operators.
Gemeinsame Glücksspielbehörde der Länder (GGL) chair Ronald Benter said:
The scientifically calculated channelisation rate confirms our previous assumptions about the extent of the black market. Our measures will also be reflected in market shares in the medium term. The fight against illegal online gambling is, however, a marathon, not a sprint.
A new study does not dispute that there are a lot of unlicensed websites operating illegally. According to the study, there were 74.6% of the unique businesses reported on by the research participants, that were as unlicensed. However, those same businesses accounted for only 20.3% of the total amount of references made by those individuals, and the remaining 79.7% reference licensed businesses that were found within the study. These numbers show that while there is a sizable number of illegal businesses operating offshore, there are still many options to play at licensed locations.
This study’s results are very significant, as they indicate the size of the illegal gambling market, and are currently one of Germany’s most heated issues regarding their regulatory debate. For months, both operators and trade organizations have argued that the restrictions placed on deposits, wagers, and advertisements, have forced their customers to turn to offshore gambling websites.
Germany’s gambling is an important source of revenue with reports showing that the regulated industry paid more than €2.5 billion in taxes during the fiscal year 2023.
