Central Europe
DSWV Calls for Changes as Black Market Betting Rises in 2023
The German Sports Betting Association (DSWV) has analysed the development of the German sports betting market for 2023 at its annual press conference. The main focus was on tax revenues, the black market and player protection.
Decline in Tax Revenue
In 2023, legal sports betting providers in Germany recorded stakes of €7.72 billion, a decrease of 5.4% compared to the previous year.
“Instead, the money flows into the coffers of the black market providers,” DSWV President Mathias Dahms said.
This development illustrates the challenges facing the legal market. One important reason for the decline is the migration of many players to illegal offerings. For example, since the State Treaty on Gambling came into force in 2021, regulated providers have not been able to keep up with the extensive betting offers of the black market due to a limited betting programme. The association is, therefore, calling for attractive framework conditions for regulated providers so that they remain competitive.
Combating the Black Market
Despite regulation, the black market has a significant market share in Germany. Studies, such as the Schnabl study by DSWV and DOCV, show that around half of the time spent by German online gambling users is spent on illegal sites. This alarming development requires urgent action on the part of the Joint Gambling Authority of the federal states (GGL). The DSWV is, therefore, calling for a reorientation of the current regulatory policy in order to strengthen the legal market and curb the black market.
Promotion of Player Protection
Many interested parties will open betting accounts during the European Football Championship. It is, therefore, all the more important that gamblers are directed to the legal market. Advertising helps to make the brands of legal providers stand out from the illegal offers on the black market. Only companies permitted by the GGL protect players. In the debate on sports betting advertising, the DSWV is, therefore, expressly opposed to a ban on advertising.
“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 said during the conference.