Google Implementing Restrictions on Gambling Advertisements in Germany: Potential Impact on the Underground Market
Big Tech Firm Google to Alter Gambling Ad Policies on September 25, 2024. Consequences for the German Market include only licensed companies via the German Gaming Commission (GGC) being allowed to advertise.
GGC License Prerequisite for Advertising
Recent months have seen the GGC step up its crackdown on unauthorized gambling. Following a legal victory against foreign streamers in July 2024, the GGC now seems to be targeting Google as well.
At present, a search for phrases such as "Online Casino" or "Play Slots Online" on Google yields several paid results linking to sites whose operators pay Google per click. These typically appear before the unpaid, or organic, search results.
However, numerous unlicensed gambling providers continue to be represented amidst the advertised companies. As per new policy, these companies will cease to advertise from September 25, 2024.
Advertisers Must Provide Proof of Licensing
Advertisers are already required to prove their legitimacy if they wish to advertise gambling. Going forward, applications without a German license are likely to be rejected.
According to Google, the revised guidelines will apply to not just gambling operators but also to comparison sites. The latter must demonstrate and assure that they advertise only GGC licensed offers.
Google Fails to Combat Illicit Ads Entirely
A report by online magazine self-employed-in-the-net.de suggests that Google is not always effective in combating misleading ads. For instance, a high proportion of advertisers using the term "Online Money Making" have criminal backgrounds.
To mitigate this risk, Google has implemented verification systems for certain ad formats. However, these appear not to work perfectly, allowing some fraudsters to advertise for days, even after being reported by users. Despite not benefitting from this, Google still earns significantly from these illicit activities.
Google Needs to Clarify Unanswered Questions
Google's stricter ad policies may help curb illegal offers aimed at a German audience. Over time, this could potentially disrupt the black market.
However, the organic search area on Google remains unaddressed. As of now, Google has not commented on whether unlicensed providers in Germany will also be excluded from these regular, non-paid results.
It will also be intriguing to observe how Google handles contentious gambling search terms in the future. Queries like "Online Casino without OASIS" or "Online Casino with Cryptocurrencies" target illegal offers. Whether Google continues to display these pages remains to be seen.
It's possible that Google might display a warning message or only show results indicating that playing without OASIS connection is not legal in Germany for certain searches. In such a scenario, someone searching for "Online Casino without OASIS" might instead find informative content explaining that this is not permitted in Germany.
After the GGC's victory against foreign streamers, they've set their sights on Google, aiming to enforce stricter gambling advertisement policies. Starting September 25, 2024, only news about authorized gambling companies with GGC licenses will make it to Google News.
Following the policy change, Google has announced that advertisers, including comparison sites, must provide proof of their GGC license to continue advertising gambling offers.
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