GGL Reports 23% Black Market Share in Germany’s Gambling Industry
Introduction to GGL’s Report on Illegal Gambling in Germany
The Gemeinsame Glücksspielbehörde der Länder (GGL), responsible for regulating gambling activities in Germany, has highlighted ongoing concerns about the country’s expanding illegal gambling sector. The regulator is urging policymakers and industry players to intensify efforts to reduce the size of the unregulated market.
Extent of Illegal Gambling and Market Channelization
Channelization, which indicates the proportion of gamblers and their spending within the regulated market, remains relatively modest. For 2024, GGL estimates that 77.03% of gambling activity is legally channeled, leaving approximately 23% of the market under the control of unlicensed operators.
Financial Impact of the Black Market
The black market’s gross gaming revenue was estimated at around €547 million in 2024, showing a 17% increase from €466 million in 2023. These figures, while approximate due to the secretive nature of illegal operators who do not share their data, provide insight into the scale of unauthorized gambling in Germany.
Methodology Behind the Study
The GGL’s findings are supported by research conducted by the Blockchain Research Lab, which included a survey of 2,000 individuals who had participated in online gambling (excluding lottery) over the past year. Participants detailed up to seven platforms they used and shared information on their typical stakes and losses per session and month.
Researchers classified these platforms as either licensed or unlicensed based on official GGL data and other sources. Adjustments and complementary techniques such as behavioral tracking, proxy metrics, and additional surveys were employed to enhance accuracy and compensate for data limitations.
Insights from Player Feedback and Findings
The research revealed that while average bets per session were similar across licensed and unlicensed platforms, players using unregulated websites experienced higher average losses—about €88.96 compared to €77 on regulated sites.
Among regulated operators, Tipico, Bet-at-home, Betano, and Bwin were most frequently mentioned by respondents. In contrast, Stake.com, WooCasino, and PlatinCasino were identified as popular websites operating without proper licensing.
Challenges and Recommendations for Regulating the Black Market
The report emphasizes the inherent difficulties in accurately measuring the size and impact of Germany’s illegal gambling market. It acknowledges that no single research method can fully capture its breadth.
Accordingly, GGL advocates for the use of a combination of ongoing player surveys and advanced technological tools such as machine learning and transaction monitoring to better identify and control illegal operators in an increasingly complex and fragmented online gambling environment.
