DSWV in Germany Urges for Changes to Combat Illegal Gambling

Since the implementation of the fourth amendment in the State Treaty on Gambling in Germany in 2021, the country has seen significant growth in the black market offering. Concurrently, the number of people using the legal gambling vertical has declined after many were lured to black market operators with lucrative bonus offers. But this shift toward the illegal offering is taking a toll not only on the legal gambling sector but on the consumers as well.

In a recent report, the German Sports Betting Association (DSWV), urged for action toward the channelization of more consumers to the legal market. Holding a press conference on Thursday, the DSWV highlighted the importance of the legal sector, pointing out that players who chose licensed gambling operators are protected. At the same time, the legal gambling sector helps generate valuable tax revenue for Germany.

Yet, the Association warned about a worrying trend observed over the last few years that saw more consumers shift toward illegal offering. Citing data, the DSWV said that Germany posted €7.72 billion ($8.3 billion) in wagers for 2023, a result that marked a 5.4% decrease year-over-year.

Previously, the DSWV and DOCV released details regarding a study that showed that approximately half of the online gambling activities in Germany are taking place via illegal gambling operators. According to the Association, the study and the ongoing shift toward illegal gambling is concerning, urging for changes to the regulations that will help improve channelization toward the legal gambling sector.

Advertising Helps Channelize Users toward Legal Gambling

When it comes to advertising, the DSWV said that it is imperative for legal gambling operators to be able to advertise their services. It said that such ads can direct users toward the legal gambling sector. “In the debate on sports betting advertising, the DSWV is therefore expressly opposed to a ban on advertising,” wrote the association.

“Instead, the money flows into the coffers of the black market providers.“

Mathias Dahms, president of the DSWV

Mathias Dahms, DSWV’s president, spoke on the matter, explaining that the decrease in the number of wagers in Germany confirms that money is flowing toward illegal gambling operators. He said that while that money can generate tax revenue, it is instead fueling the black market.

Speaking about advertising, Dahms said that it is imperative for the survival of any company, especially for sports betting operators. Finally, he explained that the black market lacks any protection for the consumers, which makes it unsafe.