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German regulator thanks public after 1,500 tips made against black market operators

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German regulator thanks public after 1,500 tips made against black market operators

Germany’s gambling regulator, Gemeinsamen Glücksspielbehörde der Länder (GGL), has praised the country’s population after revealing around 1,500 tips have been shared about illegal online gambling operators since January 2023.

The GGL made the announcement Tuesday (24 September), before Germany’s nationwide action day against gambling addiction Wednesday.

Of the 1,500 reports made since the start of 2023, around half related to suspected cases of illegal online gambling. The other half, meanwhile, centred on possible irregularities at legal online providers.

Alongside the reporting portal, the GGL has also carried out its own investigations. The group took over full control of gambling in Germany at the beginning of 2023. The GGL was created by the country’s Fourth State Treaty on Gambling, which came into effect in July 2021.

The GGL’s investigations, alongside its whistleblower system, allowed the regulator to check over 1,860 websites and 483 gaming providers and advertisers for illegal gambling and the relevant marketing in 2023.

The GGL issued 113 prohibition proceedings. Of those, 63 either halted their offerings or advertisers removing their marketing across 2023.

The offences identified in legal offerings included suspected violations of payout procedures, inadmissible advertising and failures to comply with cross-provider deposit limits.

GGL board member Ronald Benter hailed the public’s contribution to the authority’s crackdown on illegal operators and onshore companies straying toward the wrong side of regulation.

“This initiative is an important contribution to raising awareness of the risks of developing gambling addiction,” Benter said. “We have the common goal of preventing gambling and betting addiction.

“The GGL’s job is to ensure that legal providers adhere to the strict rules on player protection and to combat illegal offers. Information from the public submitted via our whistleblower system plays an important role in this.”

Germany’s ongoing black market problems

Globally, Germany is one of the jurisdictions most struggling with the black market.

The GGL claimed the black market was responsible for just 4% of the German gambling industry’s gross gaming revenue (GGR) in 2023 including land-based offerings. But local trade body Deutscher Online Casinoverband (DOCV) hit back, saying the stats were misrepresented.

The DOCV instead stated offshore operators account for approximately 20% of the country’s online GGR.

The disagreement between the GGL and DOCV follows a 2023 study from the University of Leipzig. The study estimated the channelisation rate towards legal online operators was just 50.7%.

The GGL seems content with how its whistleblower system is helping to combat the black market. However, it also conceded that in many cases the information and evidence received were incomplete.

“This means that a large proportion of the reports cannot be adequately investigated,” the GGL explained.

The GGL’s call to action

In its attempts to help the German public report information, it published a how-to guide for using the whistleblower system.

The guide explains how those wishing to give information can check what gambling offers are permitted and what evidence is necessary to file an effective report.

The GGL says public support is still needed.

“Please use our whistleblower system, report violations and provide as much detail and specific information as possible,” Benter added.

“Your information is an important tool for us in the fight against illegal gambling on the internet and in ensuring player protection.”

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