German lawmakers are seeking immediate gambling reforms amid continued competition from the black market. As illegal operators continue to undermine the regulated sector, interior ministers are seeking a solution.
German Ministers Say the Reforms Cannot Wait
During a recent conference, German interior ministers discussed the state of the country’s gaming sector and encouraged immediate reforms. While the country is preparing for a market review due by December 31, 2026, ministers said that Germany urgently needs gaming legislation changes.
The highlight of the discussion was IP blocking – a measure that allows regulators to request internet service providers to block access to a website. Regulators in Germany and beyond have long promoted this measure as the way to cushion the impact of the black market.
The perks of IP blocking are that regulators can stop offshore websites that they wouldn’t normally be able to act against. As a result, lawmakers have promoted the idea of introducing both full-site blocking and selective blocks.
Proponents argued that this could finally allow Germany to crack down on illegal gambling and improve channelization rates toward regulated companies.
IP Blocking Could Help Germany Protect the Legal Market
This isn’t the first time lawmakers in Germany have discussed IP blocking. However, courts have previously rejected the idea.
For example, in 2023, a lower court denied an attempt from the German gambling authority (GGL) to block access to Lottoland. Later, the Federal Administrative Court agreed with the decision, saying that the 2021 Interstate Treaty cannot be a justification for IP blocking.
This has been a great setback to the GGL, which continues to insist that limiting its powers also limits its capacity to deal with bad actors. The regulator remains adamant that providing the GGL with more powers is the most surefire way to counteract illegal gambling.
In line with the GGL’s calls, the new reforms draft outlines powers for site blocking. However, ministers agreed that IP blocking should not apply to online advertising since this could be a precedent for banning an entire site over a single misplaced ad.
In the meantime, ministers are now seeking feedback on how to implement IP blocking in a way that doesn’t lead to adverse effects.
GGL to Secure Additional Powers & Collaborate with Other Regulators
In addition to IP blocking, ministers seek further supervisory powers for the GGL, in line with the regulatory body’s demands. Among other things, the draft would allow the authority to request information from other regulatory bodies, especially when evaluating whether an international company is suitable to hold a license.
Interior ministers have also agreed that the GGL should join a broader community of international gambling regulators and exchange crucial information.