Illegally residing foreigners in Germany:quantifying the cautious ones
Revised Article:
Germany's gambling market, bumping heads with the critics, finds itself in hot water due to a stringent set of regulations. The Federal States' Joint Gaming Authority (GGL) reported a gambling revenue of €13.7 billion, with €400-600 million from brick-and-mortar gambling, and online generating €3 billion. Sports betting brings in €1.9 billion, while online slots and poker contribute €400 million according to an annual report by iGB.
Amidst this, 133 shady websites were blocked out of 1864 analyzed, which offered unlicensed gambling services or promoted illegal operators. The regulator pointed out that providers from countries outside the EU often evade the block.
During the investigations, GGL imposed two fines of €50,000 each. However, these efforts seem like a drop in the ocean when considering the market's offshore shockwaves.
A study by Leipzig University on users' gambling habits in November 2023 showed that 48.8% of gamblers still prefer offshore sites, and another study commissioned by the German Sports Betting Association and the German Online Casino Association reported up to three-quarters of the online gambling revenue being generated offshore.
Critics snipe that German officials are painting a rosy picture, while the reality remains grim. The jury's still out on whether the market's tight-knit regulations - including a €1 maximum stake on virtual slots, a mandatory five-second spin interval, restrictions on advertising, and types of sports events - are really protecting players or pushing them towards offshore operators.
The German Sports Betting Association (DSWV) doesn't mince words, describing the current legal framework as the "most restrictive in the world." Analysts suggest that the industry needs reform, including replacing the stake tax with revenue-based taxation, removing spin limits, and sprucing up the legal market to win back players from offshore platforms.
Stakeholders like the DSWV argue that without stronger legal market incentives and targeted enforcement against illegal operators, offshore revenue will continue to balloon at the expense of the regulated channels.
In a nutshell, it's apparent that the German gambling market is losing the battle against lax offshore operators. Time will tell if and when Germany's stringent regulations will see a much-needed overhaul to level the playing field before it's too late.
Author: Alina Shvets
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- The gambling industry, particularly in Germany, faces criticism due to its rigid regulations, with annual revenues amounting to €13.7 billion.
- The Federal States' Joint Gaming Authority (GGL) reported that brick-and-mortar gambling generated €400-600 million, while online gambling generated €3 billion.
- A study by Leipzig University showed that 48.8% of gamblers still prefer offshore sites, while another study reported up to three-quarters of the online gambling revenue being generated offshore.
- The German Sports Betting Association (DSWV) described the current legal framework as the "most restrictive in the world," suggesting that the industry needs reform.
- Analysts propose replacing the stake tax with revenue-based taxation, removing spin limits, and sprucing up the legal market to win back players from offshore platforms.
- In the European Union (EU), the GGL blocks shady websites offering unlicensed gambling services, but providers from outside the EU often evade these blocks.
- Recent news includes Brazil moving closer to legalizing casinos and bingo, and a new venture fund investing $20 million in the gaming industry in the UAE, highlighting the dynamism in the global gambling and finance business, including technology, casino-and-gambling, general-news, and sports.
