Expanding black market gambling activities in Germany prompt DSWV to advocate for a shift in regulatory strategies.
The DSBA Unveils German Gambling Market Trends at Annual Gathering on Feb 15
At its annual press event on February 15, the German Sports Betting Association (DSBA) revealed the state of the German betting market in 2023. The association's examination revealed a surge in the underground gambling sector in Germany, leading DSBA to advocate for a shift in regulations.
Rise of the Underground Sector
The DSBA unveiled the gambling taxes gathered in 2023 at the gathering. Legal sports betting platforms in Germany reported handling bets worth 7.72 billion euros throughout the year, a 5.4% decrease compared to 2022.
The DSBA attributes the decrease to the difficulties faced by the legal market. In their opinion, many players have shifted to unlawful providers due to the lack of player protection standards and restricted options available.
Following the implementation of the State Treaty on Gambling in 2021, legal providers were subjected to stringent constraints. They struggled to compete with the extensive betting options on the black market efforts, according to Luka Andric, the DSBA's managing director. In December 2023, he openly criticized the current German gambling regulation.
As a result, the German Sports Betting Association is advocating for reevaluating the legal gambling market's regulation. It suggests creating favorable conditions for legal providers to compete with the underground sector in the future.
The Black Market in Germany: Insights and Figures
To shed light on the German black market issue, the DSBA refers to a relevant study. The Schnabl study, jointly conducted by DSBA and DOCV (German Online Casino Association), reveals worrying statistics. It suggests that German bettors spend half of their time on illicit sites.
Both organizations agree that the State Treaty on Gambling is falling short of its intended objectives. The restrictions for players are too stringent, making the offerings from legal providers insufficiently attractive. The shift towards illegal providers and the subsequent decline in tax revenues since the introduction of the State Treaty on Gambling could plausibly explain this trend.
The DSBA argues that this necessitates an urgent realignment of the current gambling regulations.
Marketing Should Remain Unrestricted
The DSBA emphasizes the importance of directing players towards lawful platforms. Effective marketing by legal providers, which helps distinguish them from illegal sites, is the most effective strategy, according to the association.
A company's survival depends on its advertisement rights, and this should remain valid for sports betting providers. Else, the black market persists, without offering any protective measures or controls, as pointed out by Mathias Dahms, the DSBA President.
This is particularly significant leading up to the European Football Championship in Germany, to ensure player protection. Player protection exists only with legal providers with the GGL, and the DSBA opposed an advertising ban at the annual press conference.
Call for National Gambling Addiction Research in Germany
At its annual press event, the German Sports Betting Association also voiced another demand. It has urged the implementation of a nationwide study on gambling addiction issues. The GGL or the Federal Ministry of Health should, in the DSBA's view, initiate these studies regularly.
Together with other industry associations, the DSBA established the Federal Centre for Health Education (BZgA). To combat addiction effectively, the centre needs scientific and representative findings. This study could potentially provide the necessary data.
The DSBA shared the findings of the aforementioned study during their annual gathering, highlighting the concern that German bettors spend half of their time on illicit gambling sites. The association strongly suggests that the current German gambling regulations need an urgent realignment to address this issue.
In the light of the European Football Championship in Germany, the DSBA emphasized the importance of allowing legal providers to advertise effectively, arguing that this is crucial for directing players towards lawful platforms and ensuring player protection.
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