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German Games Market Registers 6% Growth in 2019

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  • German games industry tops the 6-billion-euro mark
  • In-game purchases and fees for online services are growth engines
  • ‘The dynamic growth shows once again that games are one of the most important drivers of the digital world.’

The German games market registered continued significant growth in 2019: sales of games hardware and software rose by 6 per cent overall, to around 6.2 billion euros. These are the figures released today by game – the German Games Industry Association, based on data collected by GfK and App Annie. Sales of games hardware, including consoles, gaming PCs and accessories, dropped by 2 per cent from the previous year, to 2.4 billion euros. In contrast, the market for games software showed a gain of 11 per cent: in 2019, a total of about 3.9 billion euros was spent on computer and video games and the fees for the respective online services.

‘The German games market developed amazingly well in 2019,’ says Felix Falk, Managing Director of game. ‘Up to now, the years at the end of a console generation have been comparatively weaker economically. But we aren’t seeing any st oe now. Revenue models like in-game purchases and fees for online services have become important columns st oe games market. This means that, alongside the classic purchase of computer and video games, the long-term use of game titles is playing an ever greater role. The dynamic growth shows once again that games are one st o most important drivers st o digital world.’

In-game purchases and fees for online services are decisive growth engines

Sales through fees for online services showed the strongest percentage growth in 2019, rising by 31 per cent, to 461 million euros. These include, among other things, costs st oe online services of games consoles such as Nintendo Switch Online, PlayStation Plus and Xbox Live Gold. Also in this category are subscription services like Origin Access Premiere (EA) and Uplay+ (Ubisoft), which charge a fixed monthly rate for access to a large library of games, as well as sales for cloud gaming offerings like Google Stadia and PlayStation Now. Sales through in-game purchases also grew sharply in 2019: compared to 2018, this submarket increased by 16 per cent, to around 2.3 billion euros. In-game purchases include both small charges – to better equip one’s game character, for example – and more expensive content like whole additional campaigns and season passes. Declines were posted in other market segments, however, such as the one-time purchase of computer and video games (-3 per cent, to around 1 billion euros) and subscription to individual game titles (-10 per cent, to around 113 million euros).

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About the market data

When further dedicated games hardware like gaming PCs and the corresponding accessories are taken into account, the market size for 2018 is larger than was communicated last year.

The market data is based on statistics compiled by the GfK Consumer Panel and App Annie. The methods used by GfK to collect data on Germany’s digital games market are unique in terms of both their quality and their global use. They include an ongoing survey of 25,000 consumers who are representative st o German population as a whole regarding their digital game purchasing and usage habits, as well as a retail panel. The data collection methods provide a unique insight into the German market for computer and video games.

 

Game – the German Games Industry Association

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We are the association st o German games industry. Our members include developers, publishers and many other games industry actors such as esports companies, educational establishments and service providers. As a joint organiser of gamescom, we are responsible st oe world’s biggest event for computer and video games. We are an expert partner for media and for political and social institutions, and answer questions relating to market development, games culture and media literacy. Our mission st o make Germany the best games location.

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GGL Publishes its 2024 Activity Report

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The GGL has published its 2024 Activity Report, which reviews key developments and achievements of the past year. The report explains the approach to combating illegal gambling as well as the activities related to the supervision of legal gambling providers. A key component of the report is also an analysis of market developments in the German gambling market.

Last year, the GGL processed 230 permit and amendment applications and supervised 141 providers. The authority faced a variety of regulatory, legal and supervisory challenges. Major events such as the UEFA European Football Championship and the Olympic Games, in particular, resulted in increased advertising and betting activities, necessitating increased monitoring.

A milestone in 2024 was the court approval of the “Markers of Harm” developed by the GGL. These indicators were developed for monitoring increased deposit limits and were first used in 2024. They serve as an early detection of problematic gambling behaviour. The Mainz Administrative Court confirmed their legal admissibility. The GGL sees this as an important step towards uniform player protection standards.

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In 2024, the GGL successfully took action against illegal offerings and was able to make the offerings of numerous illegal providers inaccessible to players in Germany. A total of 231 prohibition proceedings were initiated and over 1700 websites were reviewed. Approximately 450 illegal gambling sites were no longer accessible from Germany due to prohibition orders, and another 657 were no longer accessible due to geo-blocking based on the Digital Services Act (DSA). Payment blocking made deposits and withdrawals for illegal offerings more difficult.

Another success was the adjustment of Google’s advertising guidelines at the initiative of the GGL. Since September 2024, only authorized providers in Germany have been allowed to advertise via Google Ads. This significantly reduced the visibility of illegal offers.

“Our measures are having an impact. Nevertheless, combating illegal offerings remains challenging and requires perseverance and close cooperation with national and international partners,” said Ronald Benter, CEO of GGL.

According to GGL estimates, illegal online gambling accounts for approximately 25% of the total online gambling market.

The legal German gambling market (online and land-based) generated gross gaming revenue (equivalent to players’ losses) of approximately €14.4 billion in 2024—an increase of approximately 5% over the previous year. Tax and levy revenues from gambling amounted to approximately €7 billion.

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The providers regulated by the GGL generated approximately four billion euros, which corresponds to a 28% share of the total permitted market.

In the illegal market, the GGL registered 858 German-language gambling websites operated by 212 operators without a license. The GGL estimates that the illegal German-language websites it recorded represent a market volume of between €500 and €600 million. This corresponds to approximately 3% to 4% of the entire legal market (terrestrial and online) and approximately 25% of the legal market for dangerous online gambling, such as virtual slot machines or sports betting.

In 2025, the GGL expects further groundbreaking court rulings on its measures, thus providing even greater legal certainty in its approach. The authority will continue to support the evaluation of the 2021 State Treaty on Gambling and, among other things, further expand advertising monitoring. The further development of the use of safe servers is intended to further improve oversight of the legal gambling market and enable more precise monitoring. A particular focus is on intensive cooperation with national and international authorities to further effectively curb the illegal gambling market. This will target not only the providers themselves, but also technical service providers, advertising partners, and other supporting actors.

Ronald Benter said: “Our stated goal is to make the business model of illegal providers unattractive through a comprehensive package of measures. Combating illegal offerings remains a long-term process that requires strategic action, decisive action, and close interagency cooperation.”

The post GGL Publishes its 2024 Activity Report appeared first on European Gaming Industry News.

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German Federal Government Significantly Increases the Budget for Games Funding

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Good news for games companies in Germany: the Federal Government’s budget plans provide for the significant increase in the games funding budget long demanded by game – The German Games Industry Association. The Federal Government’s draft budget provides for a total of 125 million euros annually from 2026. The new funds are in line with the calculations made by the game association for the funds required until the introduction of additional tax incentives for games, as announced in the coalition agreement.

“That’s encouraging! The new federal government, and above all Federal Minister for Research and responsible for games Dorothee Bär, is following up its words with action. Following the clear statements in the coalition agreement, the significant increase in games funding less than 50 days after taking office has already set a key course. The funding will ensure growth again and provide the necessary breathing space to implement the additional tax-based games funding planned in the coalition agreement at the same time. This decision is an important and encouraging sign that Germany is creating internationally comparable conditions and wants to catch up quickly in the competition between games locations,” said Felix Falk, Managing Director of game – The German Games Industry Association.

The post German Federal Government Significantly Increases the Budget for Games Funding appeared first on European Gaming Industry News.

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Relax Gaming celebrates twenty-one Mega Jackpot winners as Hungarian player hits Dream Drop prize

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Relax Gaming, the iGaming aggregator and supplier of unique content, has announced its 21st Dream Drop Mega Jackpot winner after a Hungarian player landed a cool €2.9 million prize from a €0.30 spin.

The incredible win occurred at Vegas.hu, the first legally operating online casino in Hungary. The jackpot was hit playing Money Train Origins Dream Drop, a high-octane release that blends the gritty aesthetic of the original Money Train with the legendary Dream Drop jackpot.

Released in June 2023, Money Train Origins Dream Drop is part of Relax Gaming’s growing portfolio of jackpot titles. With engaging features and the proven popularity of the Money Train franchise, the title has delivered on every front, offering a compelling experience for both new and returning players.

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This latest win marks the 21st time the top prize has been triggered since the jackpot launched, reaffirming Relax Gaming’s position as a leader in jackpot innovation. It also comes hot on the heels of the supplier’s recent upgrade to the product, with fast-paced Daily Jackpots added to the Dream Drop network earlier this month.

Martin Stålros, CEO of Relax Gaming, said: “This latest Mega Jackpot hit is another brilliant moment for Relax Gaming and for one very lucky player.

“We’re especially pleased to see the jackpot drop at Vegas.hu, a key partner and a trailblazer in regulated online gaming in Hungary. With the addition of Daily Jackpots to our network, Dream Drop continues to lead the way in offering the most exciting jackpot experience in the industry.”

Laszlo Siba, Online Casino Director at Vegas.hu, added: “We are absolutely thrilled to have hosted Hungary’s first Dream Drop Mega Jackpot win here at Vegas.hu. Delivering standout moments like this is exactly what we strive for. Long may Relax Gaming’s innovative content continue to engage and excite our players, especially the Dream Drop series!”

The post Relax Gaming celebrates twenty-one Mega Jackpot winners as Hungarian player hits Dream Drop prize appeared first on European Gaming Industry News.

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