Will less regulation lead to fewer illegal offers?

Both online and offline, the gambling industry in this country is highly regulated. Whether this is a good or bad thing is a matter of opinion. However, the question is whether less regulation would mean less illegal gambling. But at what point should regulation be relaxed, and can politicians even justify doing so?

Over the past two years, we have reported critically on the new State Treaty on Gambling (GlüStV) on several occasions. Most recently, in an article published in March this year, we argued that new figures show that the impact of the GlüStV 2021 is questionable. The fact is that a large number of players are not satisfied with the gambling legislation.

Current situation: Legal gambling services in Germany   

The good news first: For over a year now, players in Germany have been able to legally access virtual slot games. They are no longer in a legal grey area as they were years ago.

The first part of the new contract clearly states that the aim is to provide a suitable alternative to illegal gambling. In other words, the legislator obviously wants to combat illegal gambling by making legal gambling not only available, but also attractive to the player - an ambitious goal, as stated in the text of the law (§ 1 GlüStV No. 2):

"The objectives of the State Treaty are equally important, namely to channel the natural gambling instinct of the population into orderly and supervised channels by means of a limited offer of gambling which represents a suitable alternative to unauthorised gambling, as well as to counteract the development and spread of unauthorised gambling in black markets.“

Target situation: Legal gambling needs to become more attractive

The legislator wants the legal gambling offer to be attractive. However, many gamblers are not satisfied with the existing online casino offerings, at least not in every respect. Some are bothered by the annoying 5-second minimum play time, others are unhappy with the provider-wide monthly deposit limit of €1,000, and still others have a problem with the ban on autospins. So is the licensed online gambling house not attractive?

In principle it can be said that online casinos with a German licence are attractive. The fact is, however, that there are a number of areas of concern for gambling enthusiasts. First and foremost, there is the minimum play time of 5 seconds and the betting tax of over 5% on each spin.

Disruptive factors in German online gaming arcades:

• "Slot tax" on each spin
• Minimum playtime of 5 seconds
• Autospin ban
• Deposit limit of €1,000 per player per month

Is less regulation the answer?

Back in October 2022, we reported that the channelling rate in Denmark was over 90%. This means that the vast majority of Danes play on legal online gaming sites. Indeed, there are many regulations in Denmark that gambling operators have to comply with. However, our neighbours do not have a minimum play time, an autospin ban or an online gambling tax based on stake.

Conclusion: "Less is more“

Not only in gambling, but also in many other areas of life, the legislator in Germany tends to impose very extensive and detailed regulations. However, at least when it comes to online gambling houses, they should be a little more tactful in order to prevent a migration to illegal online casinos. However, it may be difficult to find a political majority to water down the existing player protection regulations. After all, decision-makers would quickly be accused of not taking player protection seriously, or of simply wanting to support the gambling industry.

Quelle des Bildes: https://pixabay.com/de/photos/legal-illegal-wählen-auswahl-1143114/