German Sports Betting Association Urges Regulatory Changes Amid Black Market Growth
Date: 2024-02-16 Author: Dima Zakharov Categories: SPORTS BETTING
Decrease in Market Share Sparks Concerns
Germany’s leading sports betting trade group, the DSWV, has expressed concerns over the decline in market share experienced by its members in 2023, attributed to the growing prominence of illegal betting operators. According to the DSWV's data, there was a 5.4% decrease in stakes compared to the previous year, amounting to €7.7 billion.
Migration to Illegal Operators
A recent survey commissioned by the DSWV revealed that approximately 50% of online gambling activity in Germany occurs on the black market. The association attributes this migration to restrictions imposed by the State Treaty on Gambling, including bans on live betting, making unlicensed operators more appealing to players.
Call for Regulatory Reforms
As Germany prepares to host the UEFA European Championships this year, the DSWV is calling on the Joint Gaming Authority of the States (GGL) to reassess current regulatory policies. The association opposes proposals for a complete advertising ban, emphasizing the importance of providing attractive conditions for licensed operators to remain competitive.
Advertising Restrictions: A Double-Edged Sword
While the State Treaty on Gambling imposes restrictions on advertising, the DSWV believes an outright ban would only further drive players towards illegal operators. The association argues that advertising plays a crucial role in distinguishing legal providers and protecting consumers.
Alarming Trends in Online Gambling
A recent study commissioned by the DSWV highlighted concerning trends in the German online gambling market, with only 50.7% of play occurring with licensed operators. The study underscores the need for effective regulatory measures to curb the proliferation of the black market and ensure consumer protection.
