Germany’s Gambling Regulator and Industry Views on Market Dynamics

July 1, 2025

News

Overview of Germany’s Regulated Gambling Market

The German gambling authority, Gemeinsame Glücksspielbehörde der Länder (GGL), recently released its yearly report reviewing the progress made in fostering a more competitive and appealing market for registered operators within the country.

Illegal Gambling: A Minor Yet Controversial Segment

The report highlights a 5% increase in gross gaming revenue, reaching 2.4 billion, continuing a positive growth trajectory. A key focus was the persistent challenge posed by the unregulated gambling sector. Licensed operators have called on the GGL to adopt stronger measures to ensure a level playing field, citing that some unlicensed providers are able to attract German players more effectively due to regulatory constraints placed on legitimate companies. In 2024, the regulator identified 858 unauthorized websites managed by 212 operators, with estimated player expenditure ranging between 400 million and 600 million. Despite this, GGL states these figures only represent 3% to 4% of the overall market volume. However, industry participants dispute these numbers, arguing the illicit market’s reach is substantially understated. Some estimates suggest offshore operators control nearly half of Germany’s gambling sector, a claim GGL rejects. Data from H2 Gambling Capital notes onshore revenue constituted 40% of the market in 2024 but forecasts a decrease to 36% by 2025. The regulator remains hopeful, citing recent adjustments in advertising regulations by major platforms like Google, aimed at curbing the activity of unlicensed operators in Germany.

Industry Skepticism Towards Regulatory Claims

Despite GGL’s optimism, industry leaders remain unconvinced. Christian Heins, Tipico’s iGaming director, has openly criticized the regulator’s data gathering approach and conclusions. Heins points out that the black-market figures for online casinos are not separately evaluated, with GGL instead combining all unregulated gambling segments—such as online casinos, sports betting, poker, and lotteries—into a 400 million to 600 million gross gaming revenue estimate. He argues the black-market revenue solely from online casinos might be substantially higher, possibly between 1.5 billion and 2 billion. In summary, skepticism persists among industry experts regarding the accuracy and optimism reflected in the GGL’s annual assessments of the regulated gambling market in Germany.