German online casino association openly criticises regulation and GGL

The German Online Casino Association made some very critical statements as part of the so-called ‘Regulator Update’ at this year's ICE in London, which is regarded as the top trade fair for the gaming and entertainment industry. The focus was on the current regulatory measures in Germany. In addition, the orientation of the GGL was heavily questioned.

It's been a few weeks since the ICE in London - and as there was no official press release from the German Online Casino Association (DOCV) on the matter, it unfortunately passed us by at first. However, it is undoubtedly highly relevant, as the current regulation in Germany has once again been sharply criticised by a major industry association and the philosophy of the Joint Gambling Authority of the Federal States (GGL) has even been called into question. We therefore do not want to withhold the relevant circumstances from you, despite a certain delay.

Basically, the DOCV came to the conclusion that the German gambling market was tipping away and that more and more people were turning to illegal offers as an alternative. The reasons given for this were not only the very strict regulations - the behaviour and self-image of the GGL were also criticised.

Tax revenue as the starting point for criticism - ‘Market is tipping into the illegal sector’

At ICE 2024 in London, the DOCV literally warned that the German online gambling market was ‘tipping into the illegal sector’. The German Sports Betting Association (DSWV) and the Austrian Association for Betting and Gaming (ÖVWG) were also involved in the event in question, at which association head Dr Dirk Quermann issued this warning.

Like the German Sports Betting Association (we reported), the DOCV initially referred to the falling tax revenues from legal gambling when expressing its objection. Quermann stated that these figures were ‘difficult to dispute’:

‘Tax revenue from online slot machines is currently only 35 per cent compared to the previous year. But people are not gambling less. So they are gambling elsewhere - illegally.’

Insufficient competitiveness with current regulation

The DOCV named a number of specific reasons why German online casinos are barely competitive and why so many people use illegal offers. Individual regulatory conditions and restrictions were put forward. Things like the 5-second rule, the strict limits and the restrictions on game selection are also repeatedly criticised by our community. Many regular players openly cite them as triggers that tempt them to favour foreign casinos.

Mathias Dahms, Chairman of the German Sports Betting Association, also expressed this view. He argued with concrete figures on the scope of the approved betting programme compared to other countries:

‘That is a maximum of 13 per cent of what is possible in the UK. We are not competitive with foreign providers and the black market.’

Questioning the GGL philosophy

However, the criticism went far beyond the regulatory requirements: the GGL was criticised for its basic orientation and self-image. Dr Dirk Quermann said that the authority should ‘no longer see itself as the guardian of the galaxy. It is enough for them to be the guardians of the legal game.’ Otherwise ‘we won't get the market to become legal - then it will collapse’, according to various press reports.

This means that the GGL must make more comprehensive changes to its philosophy, focus on the essentials and really utilise its room for manoeuvre: This is how it can be interpreted from Quermann's conclusions. He criticises the fact that the authority is not making full use of its options. It would have considerably more freedom in regulatory matters relating to online gambling. However, the ‘most restrictive approach’ is being taken.

GGL remains relaxed

The GGL reacted quite calmly to the strong words at the conference. Representatives present confirmed a close dialogue between the authorities and the industry. Certain deficits were even acknowledged, which primarily concerned personnel resources. Among other things, they wanted to work on putting more capacity into the authorisation of new games.

The very hesitant release of new titles is undoubtedly a very important point that both players and industry associations repeatedly criticise. Every game submitted to the GGL must be reviewed individually in accordance with Section 22a of the new Interstate Treaty on Gambling (GlüStV), with the question of discretion playing an important role. The fact that this can quickly lead to considerable delays and other difficulties probably needs no further explanation.

Despite the admissions, the GGL representatives made it clear that the rules of the GlüStV must be implemented and adhered to. It was not within the authority's power to make changes.

Conclusion

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