The gambling industry has experienced a boom in the last few years. With the appearance of new companies, competition has appeared. Most markets have introduced specific acts regulating this form of entertainment.
However, this did not prevent the growth of the black market, which caused many problems in various jurisdictions, including Germany.
Germany's authorized gambling operators face mounting challenges from the thriving black market. This article explores the impact of regulatory measures and their unintended consequences on the German gambling industry.
A Competitive Regulated Market, The Best Antidote
Wes Himes of the Betting and Gaming Council underlines that a competitive controlled market is the most effective countermeasure to the black market. While the German Gambling Act is glorified for its cooperative approach, slow headway in regulatory reform in Great Britain stands in stark contrast.
Great Britain's guideline of moderating instead of forbidding activity, with affordability examinations and personalized settlement, appeals to many. Critics view blanket restrictions like monthly deposit caps of €1,000 as intrusive and excessive, driving players to the unregulated black market.
Re-regulation Impact on Licensees
Sam Brown, CEO of Rootz, underlines the effects of re-regulation in Germany. As restrictions tightened, average punters' warranties plummeted by 80%, and gross earnings per player halved. Brown reveals a substantial evolution of players from controlled to unregulated markets.
Himes and Brown agree that harm deterrence should be the ultimate responsibility of operators. Addicted customers are damaging to business, and a personalized, player-centric approach can be more effective than blanket restrictions.
Yannick Skulsky of Hambach & Hambach notes the sophistication faced by legal operators in rolling out new titles due to rigid credential needs. The lack of B2B licensing forms contrasts between licensed and unlicensed operators.
Attempts by players to recover gambling losses from unapproved brands have not discouraged the black market's growth. While courts and customers continue to seek settlement, a recent Supreme Court ruling may shift the landscape. This ruling stresses that players are knowingly engaged in illegal gambling.
Germany's Omnichannel Black Market
Illegal play extends across all pipelines, from unlicensed gaming machines to Kaffe Kasinos. Criminal groups find illegal gambling low-hazard and highly worthwhile. Efforts are being made at the country level to combat both illegal gambling and strict regulations on the regulated market.
Germany's licensed gambling operators face a complex challenge in combating the black market while adhering to stringent regulations. The unintended consequences of blanket restrictions and a lack of personalized compromise may be driving players towards unregulated alternatives. Achieving the right balance between regulatory control and market competitiveness remains an ongoing debate in the German gambling industry.
Source:
''Germany’s illegal gambling problem'', igamingbusiness.com, October 9, 2023
DrSimonCem
5 months ago
Another thing that should perhaps be mentioned is the fact that the specially developed federal agency is completely understaffed. With a ridiculous number of employees, faced with a huge mountain of piling up cases; a task; which can only be described as impossible to carry out with such limited resources. Against the...
Another thing that should perhaps be mentioned is the fact that the specially developed federal agency is completely understaffed. With a ridiculous number of employees, faced with a huge mountain of piling up cases; a task; which can only be described as impossible to carry out with such limited resources. Against the background of the industry being completely left to its own devices until recently, the fact that it was not given a free hand by clear laws, the current attempt works against the fact that there are existing providers all over the world here and with a certain background, with only the latter being the case ; insofar as they are also hosted on German servers; and more importantly, if the owners were known and whose accounts were accessible to the German tax authorities, there would be any chance of enforcing any sanctions! A gigantic administrative effort, you could set up 3 new stasis to even begin to do justice to the flood of data raw material that has accumulated to date. To more than a few show trials, which were probably intended to act as a deterrent to others, and which probably cost more than could even come close to doing justice to the gigantic turnover. Instead, more and more fraudulent casinos have emerged that continue to accept German players and have in turn pushed out the numerous fair German casinos. Don't get me wrong, there have always been black sheep! With money in the d the handful of newly created or reopened casinos operating with a German license are again operating due to the numerous and drastic requirements of the new laws. Not only do they rob every player of the fun, but they also cause problems due to worse RTP's, a betting limit of 1 €, a 10 second waiting time between each spin, regardless of the almost non-existent or greatly reduced chances of winning. Which ultimately leads to German capital now guaranteed to seep away into unmanageable channels.
Show moreNoch zu erwähnen wäre vielleicht die Tatsache, dass die eigens dafür entwickelte völlig unterbesetzte Bundesbehörde.. Mit einer lächerlichen Anzahl an Mitarbeitern, vor einem riesigen Berg von sich anhäufenden Fällen; eine Aufgabe; die man nur als Unmöglich ahhand dermaßen geringen Ressourcen durchführbar bezeichnen kann. Vor...
Noch zu erwähnen wäre vielleicht die Tatsache, dass die eigens dafür entwickelte völlig unterbesetzte Bundesbehörde.. Mit einer lächerlichen Anzahl an Mitarbeitern, vor einem riesigen Berg von sich anhäufenden Fällen; eine Aufgabe; die man nur als Unmöglich ahhand dermaßen geringen Ressourcen durchführbar bezeichnen kann. Vor dem Hintergrund der bis vor kurzem komplett sich selbst überlassen Branche, der Tatsache des nicht durch eindeutige Gesetze 'orientierungsfrei' frei Hand gelassen hat, Wirkt der jetzige Versuch engegen der Tatsache des hier weltweit bestehende Anbieter und soche mit deutem Background wobei man sich nur Letzterer; insofern sie auch auf deutschen Servern gehostet; und viel wichtiger die Besitzer bekannt und deren Konten für den deutschen Fiskus greifbar wären überhaupt eine Chance für eine Durchsetzung etwaiger Sanktionen infrage kämen! Ein gigantischer Verwaltungsaufwand, da könnte man 3 neue Stasis einrichten um überhaupt nur ansatzweise allein der sich bis dato angehäufter Flut an Datenrohmaterial gerecht zu werden. Zu mehr als ein paar Schauprozessen, die wohl auf andere abschreckend wirken sollen, und vermutlich mehr gekostet haben als auch nur annähernd dem gigantischen Umsatz gerecht werden könnten. Stattdessen sind immer mehr betrügerische Casinos die weiterhin deutsche Spieler akzeptieren und ihrerseits die zahlreichen fairen deutschen Casinos verdrängt haben entstanden. Verstehen Sie mich nicht falsch, schwarze Schafe gab es schon immer! Mit Geld in der d die Handvoll neu entstandener bzw wieder eröffneter mit deutscher Lizenz operiender Anbieter wieder praktizierender Casinos sind durch die zahlreichenden und einschneidenden Vorgaben durch die neuen Gesetze. Rauben nicht nur jedem Spieler den Spaß, nein sie Sorgen durch schlechtere Rtp's, Einsatzlimit 1 €, 10 Sekunden Wartezeit zwischen jedem Spin unabhängig von den so gut wie nicht vorhandenen bzw stark herab gesetzten Gewinnchanchen sorgen von Selbst für eine Abweichung auf international Frei bespielbaren Casinos. Was letztendlich dazu führt das Deutsches Kapital nun unter Garantie in unüberschaubaren Kanälen versickern.
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DrSimonCem
5 months ago
Another half-baked and ineffective measure; online gambling, which was not regulated or vaguely interpreted as 'free' several years ago; to subsequently apply its scope based on national borders. , that fundamentally contradicts the functionality and cross-border properties of today's Internet, which has proven its unprecedented...
Another half-baked and ineffective measure; online gambling, which was not regulated or vaguely interpreted as 'free' several years ago; to subsequently apply its scope based on national borders. , that fundamentally contradicts the functionality and cross-border properties of today's Internet, which has proven its unprecedented success precisely through its decentralized and cross-border usability! Regardless, this creates an unfair market disadvantage for both German casinos and individual players!
Show moreEin weitere unausgegorene sowie wirkungslose Maßnahme; dem vor etlichen Jahren nicht reglementierte bzw schwamig 'frei' auslegbaren Onlineglücksspiel; nachträglich seine Geltungsbereich anhand von Ländergrenzen anwenden zu wollen. , das widerspricht grundsätzlich der Funktionalität und grenzüberschreitenden Eigenschaft...
Ein weitere unausgegorene sowie wirkungslose Maßnahme; dem vor etlichen Jahren nicht reglementierte bzw schwamig 'frei' auslegbaren Onlineglücksspiel; nachträglich seine Geltungsbereich anhand von Ländergrenzen anwenden zu wollen. , das widerspricht grundsätzlich der Funktionalität und grenzüberschreitenden Eigenschaft des heutigen Internets was eben gerade durch seine Dezentral und grenzüberschreitenden Nutzbarkeit seinen beispiellosen Erfolg bewiesen hat! Unabhängig davon wird dadurch ein unfairer Marktnachteil sowohl für deutsche Casinos als auch für den einzelnen Spieler!
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penderhippy
7 months ago
Germany's battle against a surging black market in gambling, while striving to enforce stringent regulations, underscores the intricate challenge of curbing illicit activities without stifling the licensed market. This struggle highlights the need for a nuanced approach to regulation, balancing enforcement with market vitality...
Germany's battle against a surging black market in gambling, while striving to enforce stringent regulations, underscores the intricate challenge of curbing illicit activities without stifling the licensed market. This struggle highlights the need for a nuanced approach to regulation, balancing enforcement with market vitality to protect consumers and ensure a fair, competitive landscape.
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DrSimonCem
5 months ago
I have a hard time doubting whether the bun can be described as the 'battle of Germany'! Consider the years of indifference that then resulted in the adoption of the regulations on the subject of online casinos that only apply in and for Schleswig-Holstein. That was what was said in the industry, which was heavily advertised...
I have a hard time doubting whether the bun can be described as the 'battle of Germany'! Consider the years of indifference that then resulted in the adoption of the regulations on the subject of online casinos that only apply in and for Schleswig-Holstein. That was what was said in the industry, which was heavily advertised in practically all media, through a succinct and basically self-contradictory 'only valid for players with their main residence in Schleswig-Holstein (or who are currently staying there..!) For years there was no interest in the whole thing, Perhaps this was overlooked because of the awareness of regulations that would be impossible to enforce retroactively. Now, due to the half-baked, nationwide, at best half-finished legal basis of the so-called 'New German Federal Online Gambling Agreement', a schizophrenic situation has arisen that has resulted in a number of German online casinos that have previously operated fairly and correctly, so to speak, losing their ability to compete with internationally operating competitors through unfair obligations and regulations have made further existence impossible. Viedeoslots, Winner.com, B-Casino, Wunderhino, Sunnyplayer and many more are good examples.
Show moreOb man das bun als 'Kampf Deutschlands' bezeichnen kann, wage ich mal schwer zu bezweifeln.! Man bedenke die Jahrelange Gleichgültigkeit die dann durch Übernahme der ausschließlich in und für Schleswig-Holstein geltenden Bestimmungen zum Thema Online Casinos mündete. Das hieß es dann in der praktisch in allen Medien starkbeworbenen...
Ob man das bun als 'Kampf Deutschlands' bezeichnen kann, wage ich mal schwer zu bezweifeln.! Man bedenke die Jahrelange Gleichgültigkeit die dann durch Übernahme der ausschließlich in und für Schleswig-Holstein geltenden Bestimmungen zum Thema Online Casinos mündete. Das hieß es dann in der praktisch in allen Medien starkbeworbenen Branche, durch einen lapidaren und im Grunde sich selbst wiedersprechenden 'nur gültig für Spieler mit Hauptwohnsitz in Schleswig-Holstein haben (oder sich gerade dort Aufhalten..!) Jahrelang wurde dem Ganzen desinteressiert, vielleicht auch aus dem Bewusstsein einer unmöglich nachträglich durchsetzbaren Reglementierung darüber hinweggesehen. Nun ist durch die unausgegorene, bundesweit geltende, bestenfalls halbfertige ausgearbeitete Gesetzgrundlage dem sogenannten 'Neuem deutschem bundeseinheitlichen Online-Glücksspielvertrag' eine schizophrene Situationen entstanden die etliche bis Dato fair und korrect agierenden deutschen Online Casinos sozusagen die Konkurrenzfähigkeit mit International agierenden Konkurrenten durch unfaire Verpflichtungenunf und Bestimmungen ein weiteres Bestehen unmöglich gemacht haben. Viedeoslots, Winner.com, B-Casino, Wunderhino, Sunnyplayer und viele mehr sind gute Beispiele..
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Robingood
9 months ago
I thought only the CIS countries are fighting the black market) it turns out that Germany too)
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Theo Rabe
9 months ago
This not good news at all. Throughout the world’s economy, the black market will always seem to be struggling with illegal and knock off competition. I sincerely hope that a swift and decisive resolution can be found that will have a lasting effect.
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Berks
9 months ago
Germany's gambling industry grapples with a growing black market, highlighting the delicate balance needed between regulation and competitiveness.
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FilipR
9 months ago
The struggle against the black market in Germany's gambling industry is a complex issue. Licensing and regulation challenges persist, affecting operators and players alike.
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tough_nut
9 months ago
Collaboration between operators, regulators, and legislators is vital to strike a balance between player protection and market viability. Streamlining certification processes and providing clear guidelines for player claims can further support the legal gambling industry's growth and integrity.
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SandyOlsson
9 months ago
Black markets are bad for people in any sphere of life. Everyone should avoid it.
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