The German gambling regulator, GGL, reported on July 1, 2023, that illegal gambling revenue made up to 4% of the total German market, according to their annual report.
According to the GGL, the black market generated €400m-€600m in GGR (player losses) during the period, compared to the legal market’s €13.7bn, with €3.0bn coming from online activities. Sports betting dominated online GGR with €1.8bn, while online slots and poker contributed €400m.
The GGL checked up to 1,864 websites, blocking 133, with 87 for illegal gambling and 46 for advertising black-market services. In total, 438 cases of suspected illegal gambling or advertising were processed, leading to 63 operators ceasing activities due to hearings or prohibition orders.
The GGL noted that non-compliant providers often operate outside the EU. Two €50,000 fines were imposed to enforce prohibitions. The regulator faced 117 lawsuits from various online gambling providers. In 2021-22, there were 157 illegal gambling cases with 68 prohibition proceedings.
In 2023, online gambling in the legal market accounted for 8% of GGR (€400m), while sports betting had a turnover of €1.8bn (13% of the market). The GGL faced delays in game testing due to late or missing information from suppliers but improved by mid-2024.
The 2021 Interstate Treaty on Gambling created Germany's online betting and gaming market, with the GGL beginning operations in 2023. Critics argue the regulatory process is unfriendly to commercial operators, with studies suggesting a significant black market presence. For instance, a study by Gunther Schnabl indicated 48.8% of players used offshore sites, generating up to three-quarters of online revenue. The DSWV describes the regulatory framework as "the most restrictive in the world."
