German Sports Betting Association calls for change in regulatory policy

Every year, the German Sports Betting Association organises a major press conference on the development of the sports betting market. A few weeks ago, the time had come once again: specific tax revenues, the black market and player protection were the key topics discussed, with a number of deficits being identified. As a result, the industry association is calling for nothing less than a "reorganisation of regulation".

Once again, the gambling industry has clearly criticised the conditions for regulating such offers in Germany. Over the past few weeks, direct and indirect objections have become increasingly frequent. We reported, for example, that the GGL reacted rather indignantly in a press release to the criticism of its channelling successes and that the initiators of the gambling survey did not make any methodological changes to the 2023 edition despite widespread criticism, thus providing a distorted picture of the GlüStV's player protection successes.
The latest complaints come from the German Sports Betting Association (DSWV) and are primarily based on current figures on the development of the legal market in Germany. The latter is said to be in significant decline - in favour of illegal offers. It is also about gambling advertising and its relevance for channelling. The press statement in question is only likely to please the GGL to a very limited extent.

According to DSWV, lower tax revenues indicate increased use of the black market

Above all, the DSWV points to the decline in tax revenue from legal sports betting offers in 2023. The association has figures available that show that legal stakes are down by around 5.4 per cent compared to 2022. While it was still around 8.13 billion euros in the previous year, only 7.72 billion euros were wagered in 2023.

But Germans are probably not gambling less. The President of the DSWV, Matthias Dahms, is certain: "The money is flowing into the coffers of black market providers instead."

In general, various studies suggest that illegal gambling companies account for a large proportion of German gamblers' turnover. In connection with the study "An analysis of the latest developments in the online gambling market as a result of the State Treaty on Gambling 2021" published in 2023, the German Online Casino Association (DOCV) even states that "three quarters of online gambling turnover is actually generated in the black market". Conversely, this means that more than 75 per cent of German users are probably active in the unregulated sector. We discussed the corresponding survey in our article "Study: The GlüStV 2021 canalisation plan will be missed!".

German offers are unattractive

The DSWV emphasised that the development described above represented a major challenge for the legal market, but at the same time made it clear how important it was to create truly competitive offers for German players in order to counteract this negative trend:

"An important reason for the decline (in tax revenue) is the migration of many gamblers to illegal offers. For example, since the State Treaty on Gambling came into force in 2021, regulated providers have not been able to keep up with the extensive betting offers of the black market due to a limited betting programme."

The press release also states:

"Despite regulation, the black market has a significant market share in Germany.This alarming development requires urgent action on the part of the Joint Gambling Authority of the federal states (GGL). The DSWV is therefore calling for a reorientation of the current regulatory policy in order to strengthen the legal market and curb the black market."

This, in turn, would only be possible by creating attractive framework conditions for legal providers.

Gambling advertising is important for successful channelling

A further or supplementary focus of the press conference and the associated DSWV press release is on specific advertising measures for gambling in Germany. Here, too, there is constant criticism. For example, we recently asked ourselves whether a betting provider is a suitable sponsor for the European Football Championship?

The DSWV is of the opposite opinion to most. Gambling advertising is above all a useful aspect of player protection:

"During the European Football Championship, many interested parties will open betting accounts. It is therefore all the more important that gamblers are channelled into the legal market. Advertising helps to give the brands of legal providers appeal so that they stand out from the illegal offers on the black market."

Accordingly, the association is clearly against a ban on such promotions at the European Championship and in general. Matthias Dahms also addresses the general advertising rights of legal companies:

"No company survives if it is not allowed to advertise, and this must remain the case for sports betting providers. Otherwise, players are left with the black market, where there are no protective measures or controls."

Finally, it is pointed out that the DSWV is very aware of its social responsibility and emphasises that the association, together with other associations, is a strong supporter of the advisory services offered by the Federal Centre for Health Education (BZgA). The cooperation between the industry and the BZgA has just been extended, as we reported.

Conclusion

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