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Unauthorized migrants in Germany: Estimating the number who choose to stay hidden

Unauthorized gaming operators in Germany generated around 4% of the total gambling revenue in 2023.

Unauthorized migrants in Germany: Estimating the number who choose to stay hidden

Gambling in Germany: One of the Toughest Markets Worldwide

According to a report by the Federal States' Joint Gaming Authority (GGL), gambling revenue in Germany reached 13.7 billion euros, with online gaming contributing 3 billion euros. Sports betting brought in 1.9 billion, and online slots and poker garnered 400 million [Author: Alina Shvets]. However, these figures might not tell the full story.

In fact, recent studies suggest that up to 48.8% of users still engage in gambling through offshore sites, with up to three-quarters of online gambling revenues being generated offshore [Enrichment Data]. This high rate of offshore gambling can be attributed to Germany's stringent regulatory rules, making it one of the most restrictive gambling markets globally.

The German regulatory framework is governed by the Glücksspielstaatsvertrag (ISTG), or Interstate Treaty on Gambling. This treaty, updated in 2021 to harmonize gambling regulations across the 16 federal states, imposes several stringent measures [Enrichment Data].

operators seeking to enter the market must adhere to the treaty's strict licensing requirements, advertising bans, game restrictions, deposit limits, stake limits, and taxation rules [Enrichment Data]. These measures not only limit the reach and visibility of online gambling operators but also make it challenging for them to operate legally.

Moreover, theID-checks and the ban on anonymous payment methods can add complexity to the onboarding process for players, further deterring them from engaging in legal gambling [Enrichment Data].

Critics argue that German officials present a skewed picture of the gambling market in the country, and there is evidence to support this. Given the stringent regulations, it's no wonder that some operators prefer to offer their services outside the EU [Base Article].

During investigations, the GGL imposed fines of 50,000 euros each on two operators found to be operating illegally [Base Article]. Despite efforts to control illegal gambling, the issue persists due to the presence of providers located in countries outside the EU [Base Article].

In conclusion, Germany's heavily regulated gambling market has led to a high volume of offshore gambling and put it on the list of the most restrictive in the world. The upcoming government may look to address illegal gambling, potentially resulting in even stricter regulations.

The German regulatory framework, governed by the Interstate Treaty on Gambling (Glücksspielstaatsvertrag (ISTG)), imposes strict measures that make it challenging for operators to enter and operate legally, with fines imposed on those found to be operating illegally. However, up to 48.8% of users still engage in gambling through offshore sites, generating approximately three-quarters of online gambling revenues offshore. This suggests that the current regulations may be skewing the picture of the gambling market in Germany, with some operators preferring to offer their services outside the EU to avoid these restrictions.

Unauthorized gambling operators in Germany contributed 4% of the total gaming revenue in the year 2023.

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