Secret Deal Undermines Player Protection in German Online Gambling
A clandestine agreement between German federal states and online gambling providers is undermining crucial legal safeguards designed to protect players. This is according to a joint investigation by ARD magazine Monitor, investigative journalism team “Investigate Europe,” and Zeit Online. Experts and the Federal Government’s Commissioner for Addiction and Drugs are expressing outrage.
Germany has a serious gambling problem. A staggering 1.3 million people are considered addicted to gambling, with another 3.2 million at risk. Online gambling, including sports betting, is a growing threat, and the platforms are profiting immensely. Revenues have doubled across Europe since 2018. A recent report in “The Lancet” warned of a “rapidly growing problem for public health.”
The €1,000 Limit and the Loophole
In Germany, the federal states are responsible for regulating gambling. They delegate oversight to the “Joint Gambling Authority of the Länder” (GGL), and the legal framework is defined in the State Treaty on Gambling. A key provision limits customers to a maximum deposit of €1,000 per month across all online casinos and betting providers.
Many addiction experts believe even this limit is too high. However, players can deposit significantly more if providers verify their “economic capacity” to ensure they aren’t gambling themselves into ruin. Guidelines require proof such as “income tax assessments or other proof of income and bank statements.”
Secret Agreement Bypasses Regulations
However, in November 2022, state interior ministers effectively nullified this crucial player protection measure. They did so through a previously undisclosed agreement reached in a court settlement with sports betting providers who had challenged player protection regulations.
This agreement, now widely applied in Germany, allows providers to accept a so-called Schufa-G credit check as proof of financial standing. This check, specifically developed for the gambling industry, doesn’t actually assess a player’s income or assets. The investigative team demonstrated that even a student with a monthly income of around €1,000 could increase their deposit limit to €10,000 per month.
Experts Warn of Dire Consequences
Addiction expert Tobias Hayer from the University of Bremen warns that this will drive vulnerable individuals into financial ruin even faster. “It is to be assumed that especially addiction-prone people will try to make use of this limit increase.”
Federal Government’s Commissioner for Addiction and Drugs, Burkhard Blienert, expressed his anger that the strict gambling rules established by the federal states are being “secretly repealed in retrospect.” He stated that providers are getting “a free pass to make even more profit at the expense of health and, in the end, the general public.”
Call for Legal Review
Constitutional law expert Prof. Christoph Degenhart suggests a constitutional review of the process. “There is much to suggest that this is illegal,” he said.
Most state governments refer inquiries to the Joint Gambling Authority of the Länder, which is currently examining whether the Schufa-G credit check practice complies with player protection regulations. They claim the court settlement with providers was necessary to “clarify contentious legal issues.”
Most states did not answer the question of whether and why the agreement undermined legally required player protection, with the exception of Bremen’s Senator of the Interior, Ulrich Mäurer (SPD). His office believes that “the approval of Schufa-G contradicts the goals of the State Treaty on Gambling to prevent the development of gambling addiction.” He concludes that the use of the Schufa-G credit check “must be prohibited to gambling providers without delay.”
More on this topic in Monitor on March 6, 2025, at 9:45 PM on Das Erste.
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