Unlawful migrants in Germany: Estimating those adopting cautious strategies

Unlawful migrants in Germany: Estimating those adopting cautious strategies

Rewritten Article:

Germany's gambling market is under the microscope, with critics questioning the low share of onshore revenue compared to other European nations. The Unified Gaming Authority of the federal states (GGL) reports about €400-600 million of onshore revenue out of €13.7 billion, with online generating €3 billion [1]. Sports betting brings in €1.9 billion, while online slots and poker account for €400 million.

GGL analyzed 1,864 sites, ultimately blocking 133 due to unlicensed gambling services or promotion of illegal operators [1]. However, some offenders continued to operate, as they're typically based outside the EU. In such cases, GGL imposed hefty fines amounting to €100,000 [1].

Optimistic views on this revenue share may contrast with statistics of other countries, considering 4% as meager for many, even a dream. However, critics allege that German officials might be painting a rosy picture, as studies suggest around 48.8% of users are still accessing offshore gambling sites [2]. Another study commissioned by the German Sports Betting Association and the Association of Online Casinos deduced that offshore operators generate up to three-quarters of online gambling revenue [2].

The regulatory framework is often cited as the culprit. German officials have narrowed the gaming landscape with various conditions for potential licensees and advertising restrictions, such as the prohibition of using sports event fragments and influencers [2]. Additionally, bets are limited to specific sports and events, and operators must secure a license for each new game, even if it's already approved for competitors [2].

Research highlights two primary concerns: the complexity and expense of obtaining licenses and consumer preference for offshore operators with fewer restrictions [2]. Strict consumer protection measures, while beneficial for mitigating gambling addiction, may reduce the appeal of onshore operators [2]. Moreover, adherence to technical standards, such as deposit limits and product restrictions, might dilute market appeal, contributing to the rise of offshore operators [2].

Countries like the UK and Italy have established and mature gambling market regulations, leading to a higher percentage of onshore revenue. Consumers in these markets tend to trust and favor regulated platforms, making the legal and illegal divide clearer [3]. For example, the UK's online gambling sector is thriving, with robust consumer protections that encourage players to opt for licensed operators instead of offshore ones [3].

In essence, the German gambling market faces criticism due to regulatory challenges, competition from offshore operators, and consumer preferences. To boost onshore revenue, addressing these issues is paramount [4].

1. Alina Shvets, "Germany Takes a Bite Out of the Gambling Pie," iGB, October 1, 2023.
2. CasinosAvenue, "Offshore Gambling Sites Still Rampant in Germany Despite Regulation," October 5, 2023.
3. Gambling Times, "U.K.'s Online Gambling Sector Soars, Outshines German Market," October 15, 2023.
4. Shane Mansky, "Unlocking the Potential of Germany's Gambling Market," Journal of International Financial Markets, 2023.
5. Critics argue that the German gambling market's onshore revenue is significantly lower compared to other European nations like the UK and Italy.
6. The Unified Gaming Authority of the federal states, known as GGL, reported that online gambling generated €3 billion out of €13.7 billion, with approximately 4% being onshore revenue.
7. GGL found 133 unlicensed gambling sites and imposed fines up to €100,000, but some offenders still operated as they were based outside the EU.
8. Narrow regulatory framework in Germany, with complex licensing procedures and advertising restrictions, could be encouraging consumers to opt for offshore operators with fewer restrictions.
9. Studies suggest that offshore operators generate up to three-quarters of online gambling revenue in the German market, despite regulatory efforts.
10. Technological advancements in the fintech sector, such as increased internet access and mobile gaming, may further complicate matters by enabling offshore operators to reach potential German customers more easily.
11. To boost the onshore revenue and create a more competitive and regulated market, addressing regulatory challenges, reducing consumer preferences for offshore operators, and improving consumer protection measures might be crucial steps.

Read also: