Black market for sports betting in Germany demonstrates minimal growth, estimates regulator at fewer than 5%
The GGL's 2022 Gambling Market Report: Black Market Share at a Minuscule 5%, Regulator Keeps the Fight Going
Germany's gambling watchdog, the Gemeinsamen Glücksspielbehörde der Länder (GGL), dropped a bombshell report last week, declaring that licensed sports betting operators accounted for over 95% of the market in 2022. The remaining 5% slipped through the cracks, indicating a meager presence of black market operators, as per analysis based on tax data from the Federal Ministry of Finance.
Resolute in their mission, the GGL reiterated their commitment to combating illegal gambling. Board member, Benjamin Schwanke, emphasized the importance of safeguarding customers and cracking down on illegal operators. Intriguingly, he asserted that there was no evidence of legitimate betting offers being crowded out by their illicit counterparts.
"Based on our market analysis, we've discovered that well over 95% of sports betting stakes are placed with licensed providers, according to the tax data of the Federal Ministry of Finance."
The GGL's announcement followed closely on the heels of a report from the DSWV, a German sports betting association, suggesting that strict regulations led to a contraction in the legal sports betting market in Germany last year. The sports betting association based their argument on an apparent increase in the illegal sports betting market. However, the watchdog contested this claim, revealing that their data tells a different story.
"Analysis of the tax data for 2022 demonstrates that well over 95% of sports betting sales originate from licensed providers."
The Regulator's Vigilance Remains Unwavering
Despite a minor 5% dip in the sports betting market in 2022 compared to 2021, the GGL attributed it to the pandemic and the rescheduling of the European championship from 2020 to 2021. Surprisingly, the market recuperated to levels witnessed prior to the pandemic in 2019.
Detailed insights into the legal sports betting market in 2022 were made available following the GGL's announcement of its first fine for a gambling advertisement regulations violation. This week, the regulator imposed a significant penalty on an unnamed operator, refraining from divulging the exact amount but confirming that it ran to five figures.
The fine stemmed from the GGL's discovery of a licensed operator promotng its services through a website offering illegal gambling services. In response, the regulator handed out a fine, while keeping the exact amount under wraps.
GGL's Role in the Regulatory Landscape
While specific details regarding the GGL's 2022 actions were not unveiled in the search results, they do offer insights into the broader context and recent developments related to combating illegal gambling in Germany:
- Regulatory Framework: The expansive German gambling market falls under the oversight of the Interstate Treaty on Gambling, a treaty that has continually evolved to target illicit gambling. The latest iteration, implemented in 2021, permits operators to offer virtual slot machine games under specific conditions[1].
- Joint Gambling Authority: As of January 1, 2023, the Joint Gambling Authority assists in regulating and monitoring both online and land-based gambling activities across Germany[1].
- Anti-Illegal Gambling Initiatives: In 2025, Tipico introduced the "Trusted Partner" quality initiative. This initiative's goal is to combat illegal gambling by ensuring that game manufacturers supply products only to licensed operators in Germany. The initiative delves into responsible gaming and transparency[3].
- Government Ambitions: The incoming German government has vowed to take a tougher stance against illegal gambling, emphasizing the need for more robust measures against the sector[2].
Although there's a paucity of GGL-specific 2022 actions, the establishment of the Joint Gambling Authority and ongoing initiatives illustrate a determined effort to stamp out illegal gambling practices in Germany.
- The GGL's 2022 report indicated that licensed sports-betting operators dominated the market, accounting for over 95% of the stakes.
- Despite a slight decline in the sports-betting market in 2022 compared to 2021, the GGL attributed it to the pandemic and the rescheduling of the European championship.
- In a move to combat illegal gambling, the GGL imposed a significant fine on an unnamed operator for promoting its services through a website offering illegal gambling services.
- The GGL's vigilance remains unwavering as it continues to enforce regulations in the sports-betting market, working in collaboration with the Joint Gambling Authority and participating in initiatives like Tipico's "Trusted Partner" to stamp out illegal gambling practices in Germany.
