The Joint Gambling Authority of the German Federal States (GGL) reported that Germany achieves 77% channeling in the online gambling environment. The survey indicates that regulated operators concentrate more than three quarters of the activity in the country.
Furthermore, the study points out that the unregulated market represents 22.97% of the total volume. The report was commissioned by GGL and executed by the Blockchain Research Lab, based on a specific analysis methodology.
What the study reveals about the online gambling market in Germany
Ronald Benter, CEO of the Joint Gambling Authority of the German Federal States (GGL), said: “confirms our previous assumptions about the size of the irregular market.”
According to the executive, the high channelization rate reinforces the dominant presence of legalized operators.
Therefore, the entity highlighted that the survey “confirms the methodological approach” used by the regulator. In this way, the study validates the criteria applied to measure the illegal market in the digital environment.
Review of rules and regulatory impact
GGL will use the data as a basis for reviewing the 2021 Interstate Gambling Treaty. However, the body maintains dialogue with states to evaluate possible adjustments to legal requirements.
Benter said, “We are in dialogue with states about the extent to which the results of this study may require adjustments to legal requirements.” Furthermore, the executive stated: “We await the results of the ongoing study on the protection of online players.”
Thus, Benter added: “Our measures will also be reflected in market shares in the medium term. However, the fight against illegal online gambling is a marathon, not a sprint.”
The entity stated that it will continue to monitor the sector to monitor its evolution over time.
Scientific basis and applied methodology
GGL reinforced the importance of consistent data to guide regulatory decisions. Furthermore, he highlighted the need to incorporate scientific evidence into the process.
Benter said: “A robust database is crucial to the effective regulation of the gambling market.”
Finally, he added: “Therefore, we will continue to systematically incorporate scientific discoveries into our work.”
Meanwhile, the agency reported that the “analysis based on reference values” method has already been applied in other countries.
According to GGL, this approach has been “scientifically assessed as suitable for estimating the size of the illegal internet gambling market.”
