As the market of Germany rapidly evolves, some of the biggest stakeholders assemble to discuss the implications of the regulatory changes.
On 11 November, the DoubleTree Hilton Ku’damm in Berlin will host the Gaming in Germany Conference, bringing together both private companies and regulators to address the two most pressing issues concerning the German market – black market growth and the assessment of the GlüStV 2021 State Treaty.
The attendee list features the likes of:
- Mathias Dahms, President of Deutscher Sportwettenverband (DSWV);
- Dr Dirk Quermann, President of Deutscher Online Casinoverband (DOCV);
- Maarten Haijer, Secretary General of the European Gaming and Betting Association (EGBA);
- Dr. Joerg Hofmann, Senior Partner at Melchers Law Firm;
- as well as senior representatives from the regulator, Gemeinsame Glücksspielbehörde der Länder (GGL).
Black market prominence
Statistics have shown that Germany has a big problem with the black market, perhaps one of the biggest in Europe.
At the recent pre-event Gaming in Germany webinar, Josh Hodgson, COO of H2 Gambling Capital – who will also be in Berlin – unveiled that the current channelisation rate in Germany is only 35%.
Unlicensed crypto casinos seem to be the most popular choice on the black market, with German player migration increasing eight times between 2021 and 2025.
Hodgson further estimated that the German black market will reach €1.7bn in GGR for 2025, while the licensed one will remain at €0.8bn – a three-fold difference.
It will be interesting to see how both the GGL and the DSWV tackle the matter, as their calculations of the size of the black market differ significantly.
Hodgson also highlighted a series of recent tax increases as a potential reason for players’ switch from onshore to offshore. This is directly related to the second key topic of the conference – the GlüStV 2021 State Treaty.
Gambling framework under review
Similar to the Gambling Review White Paper in the UK, there is currently an ongoing reassessment of Germany’s gambling framework that will conclude by the end of 2026.
As regulatory changes slowly roll out, player deposits have become a main point of content – with a scheduled phase out of players’ ability to increase their deposit limits already on its way.
Currently, players are able to set a maximum of €30,000 as their monthly deposit limit, If no alternative gets proposed by the time of the phase out, those limits will fall to the base minimum of €1,000.
Experts warn that around €6bn of stakes in Germany are made by players who set high deposit limits, and limiting that would send more players to the black market.
In addition, the Treaty reassessment envisions a new system in place that would implement robust financial checks that will analyse all player income over the previous 12 months. This has also stirred worries among the gambling sector.
This, and more, will be discussed at the Conference which takes place on 11 November in Berlin, starting 09:30 am local time. You can register here.
SBC News will be in attendance to provide you with live updates.
As the market of Germany rapidly evolves, some of the biggest stakeholders assemble to discuss the implications of the regulatory changes. On 11 November, the DoubleTree Hilton Ku’damm in Berlin will host the Gaming in Germany Conference, bringing together both private companies and regulators to address the two most pressing issues concerning the German market …