German Online Casino Association Calls for Transparency in Gambling Regulation
Berlin, Germany – The German Online Casino Association (DOCV) has responded to the recent activity report published by the Joint Gambling Authority of the Länder (GGL), highlighting both successes in combating illegal gambling providers and concerns regarding data transparency.
Growth of Illegal Online Gambling
The GGL’s report indicates a rise in identified illegal online gambling websites, reaching 852 in 2024, a 14.36% increase compared to the previous year. This contrasts with the 127 websites operated by 43 licensed providers, which are listed on the official whitelist. The GGL estimates that unlicensed providers account for 25% of the overall market.
DOCV’s Perspective
Julia Lensing, Managing Director of the DOCV, acknowledges the GGL’s efforts in tackling illegal operators through measures like payment blocking and geoblocking. However, she emphasizes the persistent and dynamic nature of the black market.
“Despite the GGL’s engagement, the black market remains highly dynamic and international,” states Lensing.
She cites a study from the University of Leipzig suggesting that over 50% of gambling activity occurs on unlicensed platforms. Lensing argues that these illegal providers systematically evade control, necessitating adjustments to existing laws to address online gambling specifically.
Technical Evasion Tactics
Illegal operators employ sophisticated techniques such as cloaking to bypass search engine ad controls. They also utilize mirror sites, which are identical copies of blocked sites under new URLs. The DOCV contends that the current legal framework, based on traditional land-based gambling, struggles to effectively address digital and cross-border gambling activities.
Discrepancies in Market Data
The GGL reports an increase in market volume for licensed virtual slot games and online poker, rising from €0.4 billion in 2023 to €0.6 billion in 2024. However, this reported increase contrasts with declining tax revenues from virtual slot games. According to the Federal Ministry of Finance, a 20% decrease is projected for 2024 compared to 2023.
Call for Data Transparency and Player Protection
Lensing stresses the importance of a compelling legal gambling market as the most effective deterrent against illegal gambling. She asserts that only licensed providers can guarantee comprehensive youth and player protection.
“An attractive legal gambling market is the most effective method against illegal gambling. Only the legal providers guarantee comprehensive youth and player protection,” Lensing emphasizes.
To facilitate informed discussions about regulation, the DOCV urges the GGL to regularly publish LUGAS data.
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