German Sports Betting Association Urges Stronger Crackdown on Illegal Gambling Amid Rising Black Market Concerns
German Sports Betting Association Urges Stronger Crackdown on Illegal Gambling Amid Rising Black Market Concerns

German Sports Betting Association Urges Stronger Crackdown on Illegal Gambling Amid Rising Black Market Concerns

Illegal gambling continues to be a major problem in Germany, despite the government’s attempts to regulate and oversee the betting sector. The German Sports Betting Association (DSWV) has expressed concern, calling on the government to take stronger and more immediate action against the growing presence of black-market gambling.

Although the federal coalition government has recently pledged to tackle illegal gambling, the DSWV believes the government’s strategy is too unclear, leading them to propose a detailed emergency plan to effectively address the issue.

Proposals to Boost Competitiveness and Strengthen Enforcement Against Illegal Gambling Activities

A central part of the DSWV’s proposal is to make licensed sports betting operators more competitive. The association stresses that the current regulatory environment, which includes excessive restrictions and bans on advertising, creates an unlevel playing field in favor of illegal gambling platforms.

According to the DSWV, the only way to combat the black market is by offering attractive products that can draw players away from unregulated platforms. The proposal suggests that simplifying the regulatory framework and increasing the appeal of legal betting options is essential for achieving this goal.

German Sports Betting Association Urges Stronger Crackdown on Illegal Gambling Amid Rising Black Market Concerns
German Sports Betting Association Urges Stronger Crackdown on Illegal Gambling Amid Rising Black Market Concerns

In addition to improving the competitiveness of licensed operators, the DSWV advocates for more targeted enforcement against illegal gambling. One of their key proposals is the creation of a specialized federal prosecutor’s office dedicated to tackling illegal gambling activities.

This office would focus on curbing the operations of foreign operators who exploit regulatory loopholes. Furthermore, the DSWV calls for better coordination to trace gambling funds across borders and shut down financial networks supporting illegal gambling activities. These measures, they argue, are critical to disrupting the growing black market.

Holding Affiliate Marketers and Tech Platforms Accountable to Combat Illegal Gambling

The DSWV also suggests holding affiliate marketers, online advertisers, and tech platforms accountable for promoting illegal gambling. They recommend that these entities be required to identify and remove illegal gambling content from their networks.

Moreover, the DSWV urges Germany to adopt EU-wide regulatory standards and pursue international cooperation to tackle the cross-border nature of illegal gambling. This would help to create a more unified and effective approach to addressing the issue at the European level, reducing fragmentation across local regulations.

The urgency of these proposals is underscored by the growing scale of the illegal gambling market in Germany. Estimates suggest that a significant portion—20% to 40%—of online slot betting is conducted outside of the licensed, regulated market, with unlicensed offshore companies controlling a large share of the activity.

The German Gambling Authority (GGL) has acknowledged the problem, but the DSWV has criticized the authority for not fully recognizing the extent of the issue. The association warns that failure to implement swift and effective action could have far-reaching consequences, not only for Germany’s gambling market but also for the integrity of its legal framework.