Close to half of all online gambling transactions in Germany are still played by unlicensed operators, a new study from the University of Leipzig has warned.
The research was commissioned by the German Online Casino Association (DOCV) and the German Sports Betting Association (DSWV). Written by economist Gunther Schnabl from the University of Leipzig.
The report states: State Agreement on Gambling, which comes into force in July 2021It misses its primary goal of ensuring that all online games can be played on licensed sites.
Work: with numbers
The study defines an illegal site based on several key criteria. First, the offer can be accessed from a German IP address without using a VPN. Secondly, the offer is available in German, and thirdly, when registering on the site, the user accepts the German address.
According to the report, in March 2023, the channelization rate of players into the regulated online space was 50.7%. For black market sites, 28.9% of traffic was to unlicensed EU providers and 19.9% was to unlicensed offshore providers.
The study estimates that three-quarters of online revenue is generated on the black market, leading to hundreds of millions of euros in lost tax revenue each year.
The report states that the popularity of the black market is still effective due to the ease of access to players. This situation is further compounded by the prevalence of online advertising carried out by unlicensed brands.
He also emphasizes that excessive restrictions on betting limits and bonuses reduce competitiveness and players are looking for more flexible alternatives.
The findings come as German regulators continue to improve player protection measures, including restrictions, player bans and offers of assistance. drug officer last week, Federal Drug Commissioner of the Bundestag a separate study highlighted the issue of problem gambling.
Research commissioned by the Bundestag stated that 2.3% of Germany’s population between the ages of 18 and 70 was harmed by gambling. In absolute numbers, this equates to 7.7 percent of gamblers, or 1.3 million people in total. This study also found that slot machines are considered the biggest contributor to problem gambling in Germany. In total, four in 10 slot players were found to be at risk of harm.
As a result of the findings, DOCV and DSWV called for urgent measures to be taken to solve the problem.
The action plan presented requires a review of the current regulatory environment by GGL. The report also calls for greater cooperation between the regulated sector, GGL, political institutions and interest groups.
The report also recommends a better taxation regime and a more flexible regulation. It is hoped that by ensuring this, the licensed environment will become more attractive to players.
At Spiegel’s Federal Gambling Conference last month, Attendees are warned about the threat the black market poses to players. At the event Wes Himes, the Betting and Gaming Council’s chief executive of standards and innovation, said the best way to tackle the illegal market was to create a “competitive, regulated market”.