June 19, 2023 3 min read

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DSWV Criticizes the German Head Office for Addiction

The DSWV insists that the DHS should correct its article and calculate market size based on federal tax data

The German Sports Betting Association (DSWV) published a press release on its website, criticizing the market figures, sources and methodology used by the German Head Office for Addiction (DHS) in its article, Yearbook Addiction 2023.

Incorrect Market Size Calculation

The DSWV states that the DHS uses incorrect figures as per the sports betting market size in Germany in 2021, putting up total sales at €18.3 billion ($19.9 million), translating to an increase of 409.6% year-over-year, while the market totaled €9.4 billion ($10.2 billion) in wagers, or an increase of 21%.

The DSWV was provoked to inform the public that Yearbook Addiction 2023 was based on incorrect figures after informing the DHS about the correct method of calculation did not change the figures the DHS used to calculate the 2021 market size in the revised version of its article.

Prof. Dr. Gerhard Meyer from the Health & Society Department of the Institute for Public Health and Nursing Research at the University of Bremen used gross gaming revenue (GGR) of €1.3 billion ($1.4 billion), as well as a payout rate of 93%, using the incorrect sales figures and comparisons drawn from questionable sources, fussballwetten.com, sportwettentest.net and wettProvider.de.

Elaborating on its claims about the dubious nature of the websites used by the DHS, the DSWV points to the anonymity behind these websites and the incomplete nature of the data they provide.

Furthermore, fussballwetten.com advertises gambling, which is illegal in Germany, and ranks only illegal operators in its top ten betting providers list. The website even suggests that a Curaçao license is enough for legally accepting bets in Germany, working against the legal market.

As for the payout percentage, the DSWV claims that data used by the DHS that was derived by sportwettentest.net and wettProvider.de is incomplete as payouts generally vary based on numerous factors, including the level of competition, taxes, provider’s cost structure and willingness to take risks, and the behavior of players on the market.

Online vs Retail, Combined vs Single Bets

To prove its point, the betting association points to the difference between the payout rates online and in retail, with the latter usually being well below those in betting shops, as well as the different payouts based on the type of dominating bets for each bookmaker since customers placing combined wagers tend to lose more than those wagering on a single event.

Adding the high tax burden of 5.3% on each bet in Germany, the association concludes that the payout rate of 93% used by the DHS in the calculations is not realistic, and expresses its concerns that the University of Bremen reverts to using data from such unreliable sources for its scientific work.

As a staunch defender of the legal market, the DSWV demands again that the DHS and Prof. Dr. Meyer correct their article and calculate the market size according to data published by the Federal Ministry of Finance based on the 5.3% tax on stakes and where 95% of the payments come from regulated providers.

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