GGL publishes gambling report for 2023: many challenges for the gambling authority
The Joint Gaming Authority of the States (GGL) has published a 39-page activity report for the year 2023, presenting the work of the authority and evaluating its successes. Additionally, the GGL provides an overview of market development and addresses challenges for the future.
GGL was truly operational in 2023 for the first time
The GGL publishes an annual report on the past year, reflecting on its own work and the development of the gaming market. In the online accessible document, Ronald Benter, CEO of the GGL, already points out in the foreword that the authority was only able to fully commence its work last year:
This first year was undoubtedly a challenge. [...] Everything we achieved in 2023 is the result of an intensive 18-month setup process, during which we practically built the authority from scratch. – Ronald Benter, CEO of the GGL, Source: GGL**
The responsibilities of the GGL as regulated in § 27f GluStV 2021 were fully transferred to the authority only in January 2023. Previously, individual tasks were still with the federal states. This centralization took a lot of time but is now complete.
Supervision and license issuance consume many resources
A total of 39 additional legal gaming providers were added to the 143 already existing in 2023, but there were only 15 new applications, indicating a decrease in demand for new licenses. One provider let its license lapse in the current year 2024.
The issuance of so-called individual game permits, for example for online slots, remained very time-consuming. Out of 5,703 applications, less than half were approved positively.
The GGL also invested a lot of effort in monitoring potentially illegal gaming offers and/or advertising for them. The GGL intervened in 1,864 cases and initiated 133 prohibition procedures.
In particular, the GGL sees potential for improvement in combating illegal gambling, despite initial successes. Effective tools to counter illegal operators are sometimes lacking. The lack of IP blocking capability limits measures.
Once again, the GGL strongly warned against pursuing the reform plans of § 284 StGB by Justice Minister Marco Buschmann. In 2023, the GGL filed 104 criminal charges for offering or advertising illegal gambling under § 284 StGB. In the GGL's view, this option should not be abolished but rather strengthened.
Slight growth of the legal market
Across all segments, the legal gaming market, according to the GGL, showed slight growth of around 2% to 13.7 billion euros in gross gaming revenue. The GGL estimates the market volume of illegal providers at 400 to 600 million euros, corresponding to around 3 to 4% of the permitted market.
This relatively small proportion does not match a study by the University of Leipzig, which estimated the black market share at around 50%. However, it should be noted that this study only focuses on the online segment, while the GGL considers the entire market. Furthermore, the GGL has already acknowledged that some illegal gambling providers are still not accounted for in their statistics.
Studies to bring more clarity
Due to criticism of existing gambling studies and to derive measures on a scientific basis, the GGL has provided funds of around 1.4 million euros in 2023 for studies.
The following studies were newly tendered by the GGL in 2023:
- Player protection on the internet: Evaluation of the measures of the State Treaty on Gaming 2021, University of Bremen
- Gambling advertising on television and the internet in the tension field of channelling and addiction prevention, eye square GmbH
- Study on the investigation of the black market and the channelling of gambling on the internet based on a survey of gamblers, not yet awarded
At this year's 21st Gambling Symposium of the University of Hohenheim, the GGL addressed the research needs and secured the provision of further funding.
There is still much work ahead for the GGL
In conclusion, it can be stated that the GGL still faces major tasks and has to solve a number of challenges. The authority has acknowledged this and critically examined it in its activity report.
In 2026, a comprehensive evaluation of the State Treaty on Gaming is pending, which is currently valid until 2028. It is still open how the outcome of the participants will be and whether the gambling regulation in Germany can be considered a success in the end.
The GGL's annual report highlights the importance of their activity in 2023, as it marked the first year they were fully operational. In the report, they discuss their achievements and the challenges they overcame during this period.
The GGL's report also includes an analysis of the gaming market, revealing that while the legal market showed slight growth, illegal providers still pose a significant threat. To address this issue, the GGL has funded studies to gain more clarity and deriving measures on a scientific basis.
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