The documentary ‘Attack on amateur football - the greed of the betting industry’, which was shown on ARD on 19 August 2024 after the DFB Cup broadcast, has caused a considerable stir: both parts of the betting industry and the sport have drawn the consequences. Now the controversy has moved to a new level: the German Sports Betting Association accuses the report of misleading viewers.

The German Sports Betting Association (DSWV) has intervened in the ongoing controversy surrounding the ARD documentary ‘Attack on Amateur Football - The Greed of the Betting Industry’ (we reported). It sharply criticised the portrayal of the sports betting industry. The TV programme sheds light on the processes and risks involved in betting on amateur football, which is prohibited in Germany.

According to the DSWV, important facts were omitted that could mislead a large part of the audience. At the beginning of November, the association issued a comprehensive statement pointing out that the documentary does not correctly depict how German sports betting providers and their customers operate in practice. In particular, it criticised the documentary for suggesting that German betting customers could place bets on amateur football matches in Germany unhindered with EU providers with a German licence. According to the DSWV, this is clearly prevented by the strict guidelines of the German State Treaty on Gambling (GlüStV) and by technical security precautions, especially geolocalisation and customer identification.

Looking at the documentary and comparing it with the DSWV's argumentation, the complaint seems justified. Nevertheless, there is still a bad aftertaste. After all, EU bookmakers who have a German licence and use geo-blocking are de facto also supporting the betting business on amateur sport in Germany. They send data scouts to the venues to record statistics for odds and even live betting abroad.

The involvement of many of these companies in betting on amateur sport raises ethical questions that go beyond mere compliance with German law. Thus, the conflict between public media reporting and the representation of interests in the sports betting industry not only fuels the debate on regulatory issues, but also sheds light on a more far-reaching, fundamental discussion: to what extent should amateur sport be used for commercial betting and what responsibility do bookmaking companies bear for the well-being of sport?

DSWV criticism: The documentary problematises the fragmented betting law situation in Europe, but not the behaviour of legal providers

The German Sports Betting Association (DSWV) provides a very detailed explanation that even absolute laymen can understand. This is understandable, as of course not everyone who has seen or will see the documentary deals regularly and intensively with digital sports betting.

The starting point for the DSWV's criticism is the fragmented legislation for sports betting in Europe. Fragmentation into numerous different provisions leads to considerable differences in regulation. This does not only affect bets on amateur sport. In Germany, betting on amateur games is strictly prohibited. In general, the Joint Gambling Authority of the federal states (Gemeinsame Glücksspielbehörde der Länder - GGL) prescribes strict guidelines for the organisation of betting offers. In contrast, many other EU states have no such restrictions or significantly fewer restrictions.

Unlike other digital markets in the EU, the European market for sports betting is therefore not harmonised. Nevertheless, European bookies are able to use technical aids to clearly define which users are authorised to place which types of bets in accordance with the legal provisions.

According to the DSWV, this was not emphasised clearly enough in a specific example in the documentary. The person shown there had clearly gained access to the amateur football programme of an EU betting site via a VPN and placed a bet as an example. However, this was not a normal betting context - and even if the subject of the programme had actually won something, he would not have been able to cash out his winnings.

According to the DSWV, the following should have been stated precisely.

  1. Lack of harmonisation and geo-blocking: While other EU markets such as online trading follow cross-border regulations, no uniform standards have been set for sports betting. Each member state issues its own regulations, forcing betting providers to adapt their offers by means of geo-blocking or other technical measures. In the case of Germany, this is regulated via redirection to .de sites if a connection is requested from the federal territory via a foreign domain (e.g. .com).
  2. KYC process: In order to fulfil national legislation, betting providers use several protection mechanisms. The so-called KYC process (Know Your Customer) is a central regulation. This means that German betting customers must complete a full identity check with a bookie before they are allowed to bet. In other EU countries, however, this process is only required when customers request a payout. This means that the providers implement the requirements in accordance with the respective country. But regardless of whether they do so immediately after registration or later, users from Germany would be exposed even if they use VPNs.

According to the DSWV, the documentation conceals the legal framework within which legal betting providers operate. Instead, it gives the impression that betting customers would be able to easily circumvent national rules. According to the DSWV, fundamental facts are missed:

Even if bets on German amateur games are placed via an EU-licensed provider, there is no payout in the event of breaches of the rules or false identity - the KYC process always uncovers these.
Overall, according to the DSWV, the presentation in the documentary does not problematise the behaviour of legal providers, but rather the complicated legal situation in Europe.

Nevertheless, a dilemma remains

The documentary has apparently concealed some details. Nevertheless, betting providers that offer odds on German amateur matches - even if only abroad - appear to be behaving anything but correctly.

In the course of the debate, it has been stated several times in recent weeks that Section 21 No. 1a of the GlüStV prohibits the brokering of bets on amateur matches or competitions that are highly susceptible to manipulation. This also includes, as can be read in numerous reports on the subject, the support of such programmes: more precisely, the unauthorised collection of match information for betting purposes.

The EU bookies, who have a German licence, send data scouts onto the pitches of the regional and top leagues, which is highly questionable.

The DSWV defends these companies, which seems legitimate, as the report's portrayal deviates from reality or does not show it in detail. However, the message and the significance of the report would hardly change by adding the relevant details. According to ARD, the aim is to publicise the following events:

‘The betting industry is cashing in on amateur football - even though sports betting on these games is banned in Germany. Clubs and players often don't know about it, they go away empty-handed in this global business. And that's not all: amateur football is threatened by manipulation - the integrity of the Germans' favourite sport is at stake!’ (Excerpt from the ARD media centre)

Incidentally, the Austrian bookmaker Interwetten no longer offers bets on German amateur football.

Conclusion

The DSWV's criticism seems justified. However, it does not change the dilemma or the delicate fact that betting on amateur football, which is prohibited in Germany, is nevertheless supported within Germany, including by bookmakers with a German licence. Whether or to what extent the associated practices are legally problematic and contestable is another matter. In view of current developments, however, it is quite possible that this grey area will be subject to more intensive scrutiny in the foreseeable future - possibly also by the judiciary.

Image source: Screenshot von https://www.dswv.de/falsche-schlagzeilen-keine-wetten-auf-amateursport-in-deutschland/

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