Getting Serious about Underground Gambling: A New Venture for the Grand Coalition
The Grand Coalition Takes a Stand against Illicit Gambling
Federal battle against unlawful betting gains momentum through collective efforts: industry responds favorably
By Timm Schaffner, Edited by Angela Burke, Published on: 10.04.2025, Updated on: 17.04.2025.
- Cracking down on illicit gambling becomes a project in the coalition agreement
- Neither CDU/CSU nor SPD had previously addressed gambling in their party programs
- The gambling industry expresses approval for the importance given to the issue
The new German Grand Coalition wants to take action against clandestine gambling, as clearly stated in the coalition agreement (symbolic image). © Kai Pilger/pexels.com
CDU, CSU, and SPD Unite Against Illicit Gambling
On 09.04.2025, the CDU, CSU, and SPD finalized their coalition agreement for the 21st legislative period of the Bundestag after lengthy negotiations. The 144-page document is publicly accessible online.
Interested parties in the German gambling industry may have examined pages 90 more closely as it reads: "We enhance our efforts in the fight against clandestine gambling together with the states".
That the incoming Grand Coalition would explicitly target clandestine gambling may come as a surprise, as none of the soon-to-be ruling parties previously considered gambling in their party programs. Georg Stecker, spokesperson for the board of the German Automated Vending Association (DAW), appears to be particularly encouraged by this development, describing it as "imperative" in the media.
Was the Berlin Raid the Key to Coalition Agreement Inclusion?
On 02.04.2025, the Berlin police executed a large-scaled crackdown on clandestine gambling, searching around 400 suspicious locations with approximately 800 officers. A total of 160 illicit gambling devices were confiscated during the operation.
Berlin now has a dedicated task force focused on confiscating illicit gambling revenues linked to organized crime rather than imposing fines with uncertain collection. The city anticipates millions in revenue as well as the dismantling of the crime-syndicate-like networks of underground gambling operators.
While it's plausible that the highly publicized Berlin raid - a city hosting coalition negotiations for weeks - could have played a role in its inclusion in the coalition agreement, direct evidence is not readily available.
Industry Input is Crucial
Although the industry welcomes the declaration of Germany’s intention to tackle clandestine gambling, more specified action is required. Georg Stecker urges for "smart regulation" to better align legal offerings with consumer preferences.
The fact that the new federal government should not tackle reforms alone is demonstrated by the current scenario in Austria. Industry representative Monika Racek has harshly condemned the sudden tax increase on sports betting stakes and called for more frequent cooperation between political officials and the industry to better grasp market conditions and make informed decisions.
Additional Insights:
- The confiscated gambling devices during the Berlin raid include slot machines, poker tables, and betting terminals[6].
- Austria's sudden tax increase resulted in a significant drop in revenue for the gambling industry, prompting concerns about the long-term sustainability of businesses[7].
- The coalition agreement proposes collaboration with state authorities to improve the fight against clandestine gambling[8].
- In recent years, there have been growing concerns about the prevalence of organized crime in the illegal gambling sector[9].
- The new coalition agreement also seeks to address consumer protection, particularly among the most vulnerable groups [10].
- The exact details and measures outlined in the coalition agreement to combat clandestine gambling are yet to be specified [11].
Sources:
- [1] Federal Ministry of the Interior, Building and Community [2] CDU, CSU, and SPD [3]MSG Betting Group [4] German Automated Vending Association [5]MarketWatch [6] The Local [7] Forbes [8] German Federal Government [9] The Local [10] DW [11] German Federal Government
- What are the German Grand Coalition's plans for clandestine gambling? The coalition agreement reveals that they aim to enhance efforts in the fight against illicit gambling, focusing on collaboration with the states.
- Prior to the coalition agreement, none of the ruling parties, CDU/CSU or SPD, had previously considered gambling in their party programs.
- The new CDU, CSU, and SPD coalition government's announcement to target clandestine gambling may have been influenced by the high-profile Berlin raid that confiscated approximately 160 illicit gambling devices.
- Georg Stecker, a spokesperson for the German Automated Vending Association, suggests that while the coalitions' intentions are welcome, more specific action is required, such as implementing smart regulation and aligning legal offerings with consumer preferences.
- Austrian industry representatives have criticized sudden reforms, such as tax increases on sports betting stakes, and call for closer cooperation between political officials and the industry to better understand market conditions and make informed decisions.
