GGL: 95 per cent make use of legal sports betting provider

A market analysis carried out by the GGL, (Gemeinsamen Glücksspielbehörde der Länder), the gambling authority responsible for all regions in Germany, revealed that more than 95 % of the sales on the German sports betting market is generated by legal providers. This shows a contrasting picture to other market data which was published recently by the German sports betting organisation (Deutsche Sportwettenverband (DSWV). This data shows that there was a sharp fall in sales when compared to the previous years. One of the main reasons: the huge black market.

The GGL took part in a meeting which was held at the end of March for the regional coordinators, but it also took the opportunity to carry out its own market analysis after seeing the data published by the DSWV.

According to the DSWV the black market is “significant” for the strong decline in sports betting sales

At the beginning of March 2023, the Deutsche Sportwettenverband announced that 2022 had not been a good year for sports betting. A decline in betting stakes of 13 % was registered when compared to the previous year. There was also a decrease of around 20 million Euro in the sponsoring activities of the providers.

The DSWV sees the massive competition of the black market as “significant” for this development. In this context the strict requirements for acquiring a German licence received a lot of criticism. The DSWV President, Matthias Dahms, stated that these requirements are affecting this problem.

Completely different opinions held by the GGL and DSWV on channelisation

Matthias Dahms even stated in his criticism that the channelisation in the German sports betting market is not functioning. The GGL thinks differently about this:

Roland Benter, speaking as a board member of the GGL, stated “according to our market analysis the channelisation is more than 95 % - this means- that according to the tax data of the Federal Ministry of Finance even less than 5% of the betting stakes are being made at legal sports betting providers”

According to GGL, legal sports betting providers are not being replaced by illegal providers

Benjamin Schwanke, another board member of the GGL, addressed the DSWV and said that from the recent analysis they could not observe that the legal providers are being suppressed by the illegal ones. The bookmaker pages mentioned by the DSWV are known to the GGL. There is a gambling legislation prosecution. However, the tax data provided however shows that these providers only have a very small share of the market. According to Schwanke this would only amount to less than 5 %.

According to GGL the strict regulations are hardly relevant.

The strong regulations of the German online gambling market and the difficult procedures to acquire a licence for online casinos or sports betting are always very hot topics which are often discussed.

However, Benjamin Schwanke calls the critique being made by the DSWV in this regard as “subjective”. This means that the legal providers are under the impression that they are strictly limited by the strict requirements which have been in place since the introduction of the State Gambling Act of 2021. This would imply disadvantages in the sense of a limited margin for manoeuvre. In turn this indirectly conveys that one can hardly keep up with the illegal competitors, who of course are not bound with all the regulations.

Schwanke reinforced this subtle blow on the chin with the GGL analysis: The regulation did not seem to have left an effect economically. The sales levels in 2022 were not worse and they were in the same regions of previous years.

Despite this even the five per cent illegal providers are also too much for the GGL

In view of the results of the current market situation the GGL emphasises its responsibility. The aim is to have a 100 per cent legal and safe sports betting market. This includes that the licensed providers receive fair competition conditions.

To succeed in this, some of the current procedures must be revised. Further to this Ronald Benter also said:

“The GGL is picking up speed in its fight against illegal gambling – even in the areas of sports betting and its relevant advertisements. We want to measure the success based on the data collected by the GGL.”

It is important for the GGL, that it has constant contact with all parties concerned. The authority implied that if necessary, the legal requirements would be amended. However there must be sound evidence for this to happen.

Conclusion

However, I question: Can the GGL (with the information it has in hand) keep tabs on all illegally used sports betting offers in Germany? We are talking here about analysed sports betting sales and tax data. A real black market should not be part of these numbers.

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