The Betting and Gaming Council’s (BGC) head of insights, Alex Roberts, has said Germany is a “great example” of a country introducing regulation that has pushed players towards the black market.
When asked during a panel session at Deal Me Out’s black market conference at the start of March if there were any markets the BGC was looking at in regard to channelisation, Roberts pointed to Germany as a country which has introduced regulations that have steered players to the black market.
A series of measures in the European market, including deposit limits, a 5.3% turnover tax on slots, spin delays and stake limits have drawn the ire of operators in Germany.
There are also concerns the measures have driven consumers to the black market where such restrictions do not exist.
Speaking in December, Germany’s gambling regulator, the GGL, said the black market remained a serious challenge, with a study into the channelling effect on gambling regulation expected to be published sometime this year.
In November, the GGL had heralded the federally regulated market as a “success story”, despite black market fears.
Roberts referenced a 2023 study authored by Professor Gunther Schnabl of the University of Leipzig, commissioned by the German Online Casino Association (DOCV) and the German Sports Betting Association (DSWV), which reported Germany’s channelisation rate stood at just 50.7%.
Speaking at the conference, Roberts said: “Germany is a great example with €1,000 (£842) cross-operator deposit limits and €1 slots [stake limits]. There was a report recently saying channelisation rate was just over 50%.
“France has no online casino and until very recently had a monopoly betting setup. Spain is looking at cross-operator deposit limits.
“I think the important thing to [recognise], just in the context of the UK market, is those 50% figures are pretty extraordinary.
“The UK has got a very high channelisation rate, frequently above 90%. What we can’t do is overstate and say the black market is completely endemic and widespread in the UK because all the figures say it’s not.”
With the UK introducing online slots stake limits of £2 for young adults and £5 for players aged 25 and over, Roberts noted that the key for the UK to stave off black market growth was to not deliver overly draconian measures.
The BGC commissioned a study into the black market last year, with the report compiled by Frontier economics. The data claimed £4.3bn is being staked on the UK black market each year.
Research from boutique analyst firm Eilers & Krejcik Gaming said the UK’s online black market could be worth around £1.5bn.
Roberts added: “What those jurisdictions give us is a good comparison where if you want to put in cross-operator deposit limits, if you want to get your slots stakes right down then fine – but look at this comparable market and where they have got to.
“The reality is, if somebody wants to bet more than £5 a spin in this country they can do. If somebody wants to gamble with cryptocurrency in this country they can do.
“It’s not difficult to get onto them [illegal operators], we’re just going to create a market where they don’t need to.”
The post BGC head warns UK of following in Germany’s regulatory footsteps first appeared on EGR Intel.
Betting and Gaming Council’s head of insights, Alex Roberts, says UK authorities must recognise the changes made on the continent have helped fuel black market growth and avoid making the same mistakes
The post BGC head warns UK of following in Germany’s regulatory footsteps first appeared on EGR Intel.