DSWV Urges Emergency Crackdown on Illegal Gambling in Germany

As illegal gambling continues to persist despite Germany’s efforts to regulate its betting landscape, the German Sports Betting Association (DSWV) has issued a call for swift and decisive action, presenting a thorough list of proposals to combat the proliferation of black market entities and reinforce the country’s legal sports betting framework.

Licensed Entities Should Become More Competitive

The DSWV, the primary trade body representing licensed sports betting operators in Germany, has welcomed the new federal coalition government’s pledge to fight illegal gambling, as set out in its coalition agreement. However, the association cautioned that the government’s language remains “vague” and not sufficiently action-oriented. The DSWV has thus proposed a comprehensive emergency plan.

The organization is proposing several key steps to disrupt the illegal market and bolster the position of regulated operators. According to the DSWV, licensed sports betting providers must offer products that are competitive enough to draw players away from unlicensed platforms. Excessively restrictive rules, insufficient betting options, and advertising bans are currently tipping the scales in favor of illegal websites.

The most effective weapon against a mushrooming black market is a strong legal market that offers sufficiently attractive products.

DSWV statement

The DSWV also proposes establishing a federal-level specialized prosecutor’s office focused solely on illegal gambling. This measure should enable the government to pursue foreign operators exploiting loopholes in the regulatory system. The DSWV further recommends tracing gambling funds across borders and shutting down financial pathways supporting illegal gambling networks.

Black Market Operators Present a Rising Threat

Broader recommendations by the DSWV include holding affiliate marketers, online advertising channels, and tech platforms accountable, requiring them to identify and remove illegal gambling content. The organization also urges Germany to overcome fragmented local regulations by enforcing EU-wide standards and pursuing international cooperation.

The federal states should, together with the federal government, reduce excessive bureaucracy, make the tax framework more competitive, and not further impair the visibility of legal providers.

DSWV statement

The DSWV’s urgency comes amidst rising concerns about the scale of Germany’s illegal gambling market. Recent industry estimates suggest that 20% to 40% of German online slot betting passes through licensed providers, leaving an enormous share of player activity in the hands of unregulated offshore companies. 

The German Gambling Authority (GGL), tasked with enforcing regulations, has acknowledged the ongoing threat. However, the authority faces criticism for reportedly downplaying the scale of the issue. The DSWV remains adamant that the government should cut excessive red tape for licensed operators and promote regulated businesses, warning that failure to act could have wide-ranging consequences.