Germany‘s gaming authority, the Gemeinsamen Glücksspielbehörde der Länder (GGL), revealed that revenue from illegal betting was equivalent to up to four percent of total GGR (Gross Gaming Revenue) in 2023.
In publishing the country’s illegal betting figures for the previous year, the GGL confirmed that revenue from illegal betting – defined as player losses in the report – was between €400 million and €600 million.
Signaling that the irregular illegal betting market is still abundant in the country, these numbers are equivalent to around 4% of the market’s total GGR, which reached 13.7 billion euros in the year.
Authorities crack down on illegal betting
By segment, illegal online betting generated 3 billion euros, 21.9% of the total GGR, with online sports betting accounting for 1.8 billion euros of this value. Slot machines and online poker contributed 400 million euros.
The regulatory body stated that 1,864 websites were scanned during the period. Having blocked operations in 133 cases – 87 cases of offering illegal bets and 46 cases of websites linked to advertising in the parallel market.
In total, the report revealed that GGL prosecuted 438 cases of suspected illegal gambling or advertising during the year. As a result of hearings or prohibition orders made by the regulatory body, 63 illegal operators stopped operating or advertising.
Then, in response to the fact that several illegal websites continued to offer their services despite the intervention, the GGL stated: “Providers that do not stop their services despite prohibition orders are generally based in countries outside the European Union.”
Almost 30% of bettors use unlicensed operators
The regulatory body imposed two fines of 50,000 euros to prevent illegal betting and illegal advertising during the period. GGL was involved in 117 legal actions initiated by operators from different verticals due to regulatory action taken in 2023.
Late last year, Günther Schnabl from the University of Leipzig conducted a study that found that only 50.7% of German players were engaging with licensed providers.
Thus, when analyzing around 25,000 data from German consumers, more than 700 illegal betting domains were found. Market assessment suggested that 28.9% of punters were using non-EU licensed operators, while 19.9% were using offshore brands.
Therefore, Germany’s regulatory body also commented on the current state of the licensing process in the country. The body suggested that providers receive more information to avoid further delays in game certification for slots and other online casino titles.
Board member Ronald Benter explained: “We are constantly looking for ways to streamline administrative processes. “One way to speed up the application process could be to directly engage game manufacturers and development studios.
They could participate from the beginning of registration for the approval of individual games. This would speed up the process considerably.”