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The German Sports Betting Association (DSWV) highlighted key issues in the German sports betting market during its annual press conference, focusing on the challenges of tax revenue, the rising black market, and the need for improved player protection in 2023. Despite the legal sports betting market in Germany generating €7.72 billion in stakes, there was a noticeable decline of 5.4% from the previous year. DSWV President Mathias Dahms pointed out that this downturn is primarily due to bettors moving towards unregulated providers, significantly impacting the legal market’s revenue.
No company can survive if it is not allowed to advertise, and this must remain the case for sports betting providers. Otherwise, players are left with the black market, where there are no protective measures and controls.
Dahms emphasized, “Instead, the money flows into the coffers of the black market providers,” underscoring the shift towards illegal betting platforms. This shift has been particularly evident since the implementation of the State Treaty on Gambling in 2021, which has seen regulated providers struggling to match the black market’s more extensive betting options. The DSWV is advocating for improved conditions for legal betting operators to help them remain competitive and attractive to bettors.
The association’s analysis, including findings from the Schnabl study conducted in partnership with DOCV, revealed that German online gambling users spend about half of their gambling time on illegal sites. This stark reality has prompted the DSWV to call for a significant overhaul of the current regulatory policies by the Joint Gambling Authority of the federal states (GGL) to bolster the legal market and diminish the influence of illegal operators.
With the European Football Championship on the horizon, the DSWV emphasizes the importance of guiding bettors towards legal betting options. The association argues that advertising plays a crucial role in differentiating legal providers from illegal ones, advocating against the proposed ban on sports betting advertising. Dahms argued, “No company can survive if it is not allowed to advertise, and this must remain the case for sports betting providers. Otherwise, players are left with the black market, where there are no protective measures and controls.”
The DSWV’s stance is clear: for the legal sports betting market to thrive and for player protection to be ensured, there must be freedom to advertise responsibly and a strategic regulatory reform to make legal betting more appealing than its illegal counterpart.