A review of German gambling regulations, which is to include an assessment of the success of the country’s State Treaty on Gambling, is likely to face delays. According to the German Online Casino Association (DOCV), has stated that delays to the German gambling regulation review could have a range of negative outcomes, including a flourishing black market.
Let’s take a look at the German gambling regulation review in more detail and discuss what it means for the industry in Germany moving forward. Read on to find out more.
State Treaty on Gambling
The German State Treaty on Gambling was rolled out in 2020. The legislation launched a regulated market for online poker, slot games and sports betting in the country for the first time.
In June of this year, the German gambling regulator (GGL) published an initial update on the success of the Treaty, with news that a full review of the legislation was to come.
As part of the German gambling regulation review, the GGL is expected to overhaul the online slots application process for operators. The organisation will look to optimise this process and make it easier for operators to ensure they are working within the confines of existing regulations before making an application. This should speed up the process and prevent backlogs from occurring, while also ensuring all safety and compliance standards are being met.
According to the GGL, the full German gambling regulation review will be published sometime in 2026. However, the DOCV have pushed back on this claim, citing a number of concerns that could lead to delays.
What’s Behind the Delays?
The DOCV pushed back against the proposed publication timeline for the German gambling regulation review, with the body instead maintaining that they don’t expect to see the full report until 2027 at least.
The DOCV cited a previous six-month delay to the initial report as evidence that the full review would face the same difficulties. In addition, reported issues that the GGL is facing with staff and resources are also expected to delay the publication.
The DOCV has made it clear that delays to the German gambling regulation review could have serious implications, particularly in regard to the fight against black market operators.
The Black Market
The black market has become a topic of contention in Germany. In the GGL’s June update, the organisation claimed that illicit operators accounted for just 4% of the German gambling industry. However, the DOCV and other organisations have refuted this estimate, and research published by the University of Leipzig found that upwards of 49% of German players were using black market platforms and providers.
The DOCV has warned that delays to the German gambling regulation review will give the black market further space to flourish, making it more difficult to stamp out in the future, creating potential player risks and reducing the overall tax benefit of a regulated industry.
Conclusion
Given that the GGL is a relatively new organisation, teething problems in its operation are to be expected. However, it will need to act quickly to mitigate the negative impact of the German black market, so all involved parties will be hoping the regulation review comes sooner rather than later.
