German Trade Association Applauds Proposal to Combat Illegal Gambling

The German Sports Betting Association (DSWV) has been a vocal critic of the government's hesitance to take strong action against the illegal gambling market. However, this is poised to change, as the government has unveiled a new initiative aimed at addressing the problem and actively working to diminish the influence of black-market operations in the country.

The DSWV is responding to a promise made by the newly formed CDU/CSU and SPD government, led by Chancellor Friedrich Merz, which aims to enhance the government's handling of the thriving gambling market. The DSWV has welcomed this promise as an important signal, but notes its vagueness. To make a real impact on the current regulatory framework and improve market conditions, the government must turn these intentions into effective policies. It's encouraging that the government is showing readiness to tackle the unregulated gambling market in Germany. However, lawmakers must create significant legislative and regulatory momentum for these efforts to succeed. The DSWV's proposals emphasize the need for a multi-faceted approach that makes the regulated market more appealing while also holding unlicensed companies accountable. Without addressing both these areas, merely cracking down on the sector is likely to fall short. Although these proposed measures are ambitious and realistic, the government might be hesitant to implement such sweeping reforms quickly. Progress will depend on the government's ability to engage with stakeholders to develop a sustainable enforcement framework. The DSWV has called for enhancing the autonomy of federal states, reducing excessive bureaucracy, and improving the tax framework to be more competitive, thereby boosting the visibility of legal providers. Ultimately, the DSWV argues that creating a safe and fair gambling market requires addressing the illegal gambling sector, which continues to weaken the licensed market. The country must also take proactive steps to strengthen the regulated market.

To accomplish its goals, the DSWV outlines a five-step process aimed at enhancing the appeal of the regulated gambling market and assisting providers in maintaining competitiveness. The DSWV suggests that establishing a nationwide specialized public prosecutor’s office could be a significant step in empowering the regulated sector. A central investigative authority dedicated to addressing illegal gambling, particularly online activities, could serve as a foundation for a more robust regulated market in Germany. The DSWV emphasizes in its official statement: Many proceedings currently fail due to jurisdictional issues or the international nature of the providers. Such a public prosecutor's office could specifically target foreign providers and ensure more effective prosecution. Additionally, future regulatory efforts should adopt a follow the money approach to expose and tackle black-market operations comprehensively. Furthermore, the Digital Services Act could be leveraged to hold platforms, such as affiliates and illegal operators, accountable if they are found promoting unauthorized gambling. Equally important, the DSWV advocates for stronger national gambling laws that are harmonized both nationally and across Europe, adhering to consistent standards.