Criticism from DSWV Director Luka Andric over the current state of gambling regulation in Germany
In recent discussions, Luka Andric, CEO of DSWV, has criticized the current gambling regulations in Germany, voicing concerns about the potential advantage illegal bookmakers and online gaming halls might gain in the market. Andric's criticisms have been echoed by Wulf Hambach, a leading lawyer for gambling law in Germany.
According to Andric, during popular sporting events, deposits are not possible due to the overloaded LUGAS system, leading to a loss of sales. He also finds the range of games and bets significantly restricted by the Joint Gambling Authority of the States (GGL), and the advertising guidelines for gambling too restrictive.
The German Online Casino Association (DOCV) shares Andric's concerns, criticizing the complex and inefficient system for regulating online gambling, which increases the hurdles for legal providers. DOCV CEO Julia Lensing sees an "urgent need" to rethink the regulation of classic table games such as Baccarat, Blackjack, or Roulette, as they are currently banned on the internet.
However, the GGL Co-Chairman Benjamin Schwanke believes the German gambling industry is on the right track to drive illegal providers out of the market. The GGL plans to use more effective tools in the future to detect and penalize illegal providers, such as the possibility of criminal prosecution of illegal gambling providers, but the political framework for this would first need to be created.
Proposed solutions for improving gambling regulations in Germany focus on strengthening operator requirements, enhancing regulatory oversight, and international cooperation. Stricter financial and operational requirements, such as demonstrating solid financial foundations and relevant experience, are being mandated for private operators.
The GGL aims to be a central contact point to monitor operators and advertisers, enforce compliance, and evaluate the effectiveness of current legislation. It has actively shut down illegal operators and advertisers, reflecting a focus on market integrity and consumer protection.
Recognizing the cross-national nature of online gambling, Germany’s regulator collaborates with European counterparts and international bodies to tackle illegal gambling activities spanning borders, share best practices, and adapt to evolving market conditions.
Learning from other regulators, there is awareness that excessive gambling taxes can drive players to the black market. Hence, Germany may consider balanced taxation policies that do not undermine the licensed market’s competitiveness, indirectly combating illegal gambling.
Germany intends to enhance responsible gambling measures such as centralized self-exclusion systems and stricter advertising controls to reduce harm and illegal market appeal. Together, these proposals align to create a robust regulatory framework that aims to close gaps exploited by the black market, ensure only solid and responsible operators participate legally, and protect consumers effectively.
Yield Sec, a company utilizing AI-driven methods to analyze the gambling market, has found that the actual market share of illegal gambling in Germany is 47%. Official figures suggest that there are around 800 to 900 illegal gambling websites, which are responsible for a market volume of around 300 to 500 million euros per year.
By 2026, the GGL will draw a conclusion assessing the extent to which the State Treaty on Gaming and the regulatory system have contributed to curbing illegal gambling and enhancing player protection. The specialist magazine iGaming Business published an article featuring Luka Andric's criticism of the current state of gambling regulation in Germany.
[1] iGaming Business, "DSWV CEO Luka Andric criticises German gambling regulations," 2021. [2] European Gaming Media and Events, "Germany's online gambling market: A look at the current regulations," 2021. [3] European Gaming Media and Events, "German gambling regulator GGL plans to strengthen regulations," 2021.
- The German Online Casino Association (DOCV) joins Luka Andric, CEO of DSWV, in criticizing the current gambling regulations in Germany, particularly the complex and inefficient system for regulating online casinos Germany.
- Proposed solutions for improving gambling regulations in Germany aim to close gaps exploited by illegal gambling operators, such as enhancing regulatory oversight, strengthening operator requirements, and international cooperation.
- Germany's regulator collaborates with European counterparts and international bodies to tackle illegal gambling activities spanning borders, share best practices, and adapt to evolving market conditions, recognizing the cross-national nature of online gambling.
- The German gambling industry is focusing on market integrity and consumer protection, with the GGL actively shutting down illegal operators and advertisers, like the 800 to 900 illegal gambling websites currently operating in Germany.
- Vital steps toward a more responsible gambling environment in Germany include the implementation of centralized self-exclusion systems, stricter advertising controls, and balanced taxation policies that do not undermine the licensed market’s competitiveness.
