From in-game betting restrictions to hundreds of unlicensed operators stealing market share from legal online casinos – the German gambling industry saw a lot of challenges in 2024. The new regulations also created challenges for the operators, their services and the overall reshaping of the market. If you want to find out more – this article will shed light on why German online casinos struggle with new regulations.
The GGL and Other German Regulators Can’t Identify All Illegal Operators
German regulators are struggling to identify all illegal websites because their number is big. For example, only in 2023, the GGL reported 800-900 illegal gambling websites, drawing an estimated €600 million, or nearly 10% of authorized market spending. Further research by the DOCV and DSWV highlighted that unauthorized sites dominate nearly half of the market, with around 1380 illegal gambling platforms actively targeting German players.
This widespread illegal activity undermines licensed operators, as unregulated sites easily attract users with fewer restrictions, appealing promotional terms, and higher payouts. It also leads to other issues like hindering the legal market growth and reducing tax revenues, as well as compromises efforts to protect players.
Resisting Compliance Due to Enforcement Loopholes
Unregulated casino operators in Germany exploit enforcement loopholes, thus resisting compliance with new regulations. For instance, restrictive policies and high entry costs for legal operators drive many players toward offshore sites, which offer fewer restrictions and more attractive options.
Each federal state manages its licensing, which leads to inconsistent enforcement across regions. Also, regulatory bodies often lack the necessary resources to monitor and act promptly, while shady platforms use mirror sites or VPNs to bypass detection.
Another loophole is that many illegal operators are based abroad, which complicates enforcement due to international legal constraints. Not to mention that the lengthy legal procedures delay the shutdown of illegal sites, allowing them to continue operations during enforcement actions while trying to find new loopholes.
Licensing Is Fragmented and Controlled by Individual States
In 2024, the licensing procedure for German online casinos still remains fragmented, even though three years have passed since the adoption of the current legal framework. This control on a state level creates inconsistencies in regulation and enforcement, making it challenging for trustworthy operators to meet all requirements.
That’s why it is expected the GGL to publish a review in 2026 – a year earlier than planned. Some say that the legal framework is still not completely mature and does not need a review, but others say that fundamental changes are exactly what it needs. Hopefully, Germany will soon adopt a unified approach on a country level that will facilitate compliance efforts and strengthen the overall effectiveness of the market.
Delayed Game Approvals and Strict Advertising Limits
These two factors pose challenges for every legal online casino in Germany. For example, monthly deposit caps heavily impact revenue, while every restriction of advertising further limits operators’ ability to attract and retain players. Also, some online game categories are not regulated, such as blackjack, roulette, and craps.
There are many other game restrictions in place, such as spin-speed delays and capped betting options, most of which can frustrate first-time players. These limitations reduce the variety and accessibility of games. Let’s face it – a less satisfying user experience can easily drive some players toward unregulated platforms with fewer restrictions.
Responsible Gambling Issues & Prevention of Illegal Players from Participating
Like every country, Germany also has many restrictions that prevent some players from gambling. They are also known as “illegal” players, be it users who struggle with gambling addiction, specific country-based users, minors, or others. To do so, in 2023, the GGL introduced methods like payment blocking and IP blocking alongside threats of fines and legal action.
However, German courts have yet to clarify the legality of IP blocking, creating enforcement gaps. Illegal operators are often detected through direct player reports via hotlines, highlighting the importance of user participation in identifying unauthorized platforms.
Innovation Constraints Due to Insufficient Lobbying Efforts
Although innovation in the German online casino market is a must, it faces multiple constraints in 2024. Some operators adapt by introducing compliant game variations and streamlining processes to meet regulatory standards.
However, other casinos are not ready yet to provide huge game portfolios with the latest and most innovative titles from less popular studios. Insufficient advocacy further slows the pace of change, leaving operators constrained in offering innovative gaming experiences, such as the implementation of AI/VR/AR technologies.
Conclusion
German online casinos are privileged to thrive in one of the most developed gambling markets in the EU. However, they also see a lot of challenges on the horizon, mostly related to the restrictions from the regulatory framework of the country. If any further changes and improvements aren’t made soon, online casinos will most likely keep struggling with the new regulations.
