German Regulator Says Black Sports Wagering Market Less than 5%

German Regulator Says Black Sports Wagering Market Less than 5%

Germany’s new gambling regulator, the Gemeinsamen Glücksspielbehörde der Länder or GGL, issued a new report Thursday, explaining that licensed sports betting operators had a market share of more than 95% in 2022. This left a niche for black market operators of less than 5%, judging by analysis based on tax data released by the GGL.

Besides the overwhelming share of the licensed market, the watchdog reaffirmed its commitment to continue the fight against illegal gambling. According to Benjamin Schwanke, a Board member of the GGL, a primary focus for the regulator is the protection of customers and continuing the fight against illegal operators. Additionally, he said that the regulator could not “find any crowding out of legal offers by illegal offers.”

“According to our market analysis, the channeling rate is well over 95 percent, which means that apart from less than five percent, the betting stakes are placed with the permitted sports betting providers according to the tax data of the Federal Ministry of Finance.“

Ronald Benter, CEO of the GGL

The announcement by the gambling watchdog comes after a report released recently by the DSWV, a German sports betting association, claimed that the strict regulations have resulted in a decrease in the legal sports betting market in the country last year. The GGL explained that the DSWV backed its statement by claiming that there was “an increase in the illegal sports betting market.” However, the regulator said that its data disagrees with the claims made by the sports betting association.

“Analysis of the tax data for 2022 shows that well over 95% of sports betting sales come from permitted providers,“

reads a statement released by the GGL

The Watchdog Remains Vigilant

The regulator acknowledged that a 5% dip in the sports betting market was observed in 2022 when compared to 2021. This was, according to the Authority, an impact of the pandemic and the postponement of the European championship from 2020 to 2021. Still, the GGL said that the market position of 2022 matched the levels recorded pre-pandemic in 2019.

Details regarding the analysis of the legal sports betting market in 2022 come after the GGL issued its first fine for a gambling ad regulations breach. Earlier this week, the regulator confirmed it has implemented a five-figure fine against one operator who wasn’t named.

At the time of the announcement, the GGL said that it uncovered a licensed operator that advertised its services via a website offering illegal gambling services. As a result, the GGL issued a fine but did not confirm what was the exact amount and rather said only that it was a five-digit penalty.